What do credit scores represent?
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.
What does a credit score represent quizlet?
Credit scores indicate the likelihood an individual will repay his/her debt.
Which of the following impacts your credit score most quizlet?
Your payment history and your amount of debt has the largest impact on your credit score.
Which of the following would impact your credit score?
The 5 Main Factors That Impact Your Credit Score
Amount of debt, also known as your credit utilization ratio. Age of credit accounts or history. Mix of credit accounts. New credit inquiries.
What FICO score means?
A FICO score is the number used to determine someone’s creditworthiness, your credit score. Financial institutions and lenders use this as a guide to determine how much credit they can offer a borrower and at what interest rate. FICO scores can range from 300 to 850, the higher the number the better.
How do you evaluate your credit score?
How to access your report. You can request a free copy of your credit report from each of three major credit reporting agencies – Equifax®, Experian®, and TransUnion® – once each year at AnnualCreditReport.com or call toll-free 1-877-322-8228.
What is a credit score and why is it important quizlet?
A credit score is a number ranging from 300-850 that depicts a consumer’s creditworthiness. The higher the credit score, the more attractive the borrower. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history.
What is a normal credit score quizlet?
740-799 is very good. 670 to 739 is good and represents median credit score. Factors that determine interest rates. Good score, you will have low interest rate.
What is credit in history?
Credit history is defined as a record of how you’ve managed your debts. … Credit history is a record of how you’ve managed the repayment of debts, such as credit cards and loans.
What factor has the biggest impact on a credit score?
Payment History Is the Most Important Factor of Your Credit Score. Payment history accounts for 35% of your FICO® Score. Four other factors that go into your credit score calculation make up the remaining 65%.