Definition of Credit score:
A credit score is a number between 300-850 that depicts a consumer's creditworthiness. The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.
Sometimes called a Credit Risk Score. A credit score is the number listed on a consumer credit report that represents a statistical summary of the information.
The credit score model was created by the Fair Isaac Corporation, also known as FICO, and it is used by financial institutions. While other credit-scoring systems exist, the FICO score is by far the most commonly used. There are a number of ways to improve an individual's score, including repaying loans on time and keeping debt low. .
A number assigned to a person that indicates to lenders their capacity to repay a loan.
How to use Credit score in a sentence?
- Higher salary doesnt have anything to do with your credit score.
- One metric used in calculating a credit score is credit utilization or the percentage of available credit currently being used. .
- Factors considered in credit scoring include repayment history, types of loans, length of credit history, and an individual's total debt.
- The FICO scoring system is used by many financial institutions.
- It is not always advisable to close a credit account that is not being used since doing so can lower a person's credit score.
- A credit score plays a key role in a lender's decision to offer credit.
Meaning of Credit score & Credit score Definition