B is the correct answer that best explains what a credit score represents. This implies <u>a numerical rating that expresses how likely you are to repay your debts.</u>
A credit score refers to a statistical number that lenders or financial institutions use to evaluate a customer’s ability to pay back their debts. Simply put, credit scores are used by lenders to measure someone’s creditworthiness.
<h2>Further Explanation</h2>
A customer’s credit score ranges from 300 to 800 and any person that can maintain a good credit score indicates they can be financially trusted.
Fair Isaac Corporation also known as FISCO created the credit scores model, it is a model used by financial institutions to evaluate customer’s ability to repay their debt.
Financial institutions highly considered a customer’s credit score before they can offer credit to their customers.
Customers with low credit scores are regarded as sublime borrowers, especially customers that have credit scores below 40.
All lenders or financial institutions work with different ranges of credit score but the normal average credit scores according to Fair Isaac Corporation is as follows
- 800 – 850 = Excellent
- 740 – 799 = Very Good
- 670 – 739 = Good
- 580 – 669 = Fair
- 300 – 579 = Poor
LEARN MORE:
KEYWORDS:
- lenders
- debts
- credit scores
- credit cards
- loans
