Question

A credit score is based in part on

Answer 1

Answer

D. Payment history and total debt

Explanation

A statistical number that evaluates a person’s creditworthiness and is based on credit history is called credit score.Credit score numbers are used by lenders to check the probability that an individual will pay back his or her debts.The ranges of credit score are 300 to 850.The higher the credit score of a person, the more financially trustworthy that person is taken to be.

Answer 2

The option D is correct.  

A credit score is based in part on the payment history and total debt.

Further Explanation:

Credit score refers to score which shows the credit history of the individual and tells us about how well an individual in paying his credit and loans. If an individual has a good credit score, he is able to take credit easily without any restrictions. But If an individual has a poor credit score, he is not able to take the credit in an easy way.

Justification for the correct and incorrect answer:

A.

Employment and race: This option is incorrect.

This is not the correct option. The credit score does not depend on individual employment and race.  

B.

Income and location: This option is incorrect.

This also not the correct option. As the income of the individual does not have any relation with the credit score. The location of the individual also not a base of credit score.

C.

Employment and trust: This option is incorrect.

The bank provides a loan on the basis of collateral security, not on the basis of trust. This option is not correct.  

D.

Payment history and total debts: This option is correct.

The credit score is given on the basis of payment history and total debts taken from the other banks. This statement is correct. On the basis of the credit score, the banks provide loans to the individual.  

Learn more:

1. Learn more about credit card

brainly.com/question/1218973

2. Learn more about loan types

brainly.com/question/1373941

3. Learn more about the federal reserve bank

brainly.com/question/9417688

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Money and Banking

Keywords:credit score, is based, employment and race, income and location, employment and trust, payment history, total debt, credit history, individual, income, total debts.