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Vitek1552 [10]
3 years ago
12

What helps in determining the reliability of a person to repay debt?

Computers and Technology
2 answers:
snow_lady [41]3 years ago
8 0

Answer:

C) credit score

Explanation:

  • A credit score is a number and a measure that determines the creditworthiness of a person and his reliability to repay credit by taking into account the individual's credit history.
  • Credit score takes into consideration whether the past debts are repaid, is there any new debt and also considers the new earnings.
  • This score changes based on how much debt an individual incurs and how he handles his payments and bills.
  • The organizations that lend money such as credit card companies and banks use credit scores to decide if a customer meets the criteria for a loan.
  • Credit score also helps them to evaluate that at what interest rate a customer should be given loan and it also helps the lenders to specify the credit limits for a customer.
  • Credit score enables lenders to assess the risks that are likely to be caused by lending money to a customer (if the customer will repay the debts/credits).
  • It also helps to specify the customers that can provide the most profits.
  • Higher credit score means that an individual is more creditworthy.
drek231 [11]3 years ago
6 0
C) credit score is your answer
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