QAEconomics › Which best explains what a credit score represents?
Q

Which best explains what a credit score represents?

A) A number showing how likely you are to have more than one credit card. B) A numerical rating that expresses how likely you are to repay your debts. C) A numerical rating that shows how much money you have in your bank account. D) A number expressing your yearly income.
A

Financial institutions often use a credit score rating before lending out money to their customers. Therefore, a credit rating is well defined in choice B – a numerical rating that expresses how likely you are to repay your debts. It is a collection of numbers used to measure the financial trustworthiness of a person. This is best shown by how often an individual repays their money after borrowing.

7 months ago
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