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.

Question

Harry Hanna

Business

15 October, 16:59

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.

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Answers (2)

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Sage Gill · Answer 1

Your credit score is a number that is used to (ideally) indicate your creditworthiness. This means how likely you are to repay your debt, literally how worthy of credit you are.

There are many factors that go into your credit score calculation, such as how much money you have and your yearly income, and even how many credit cards you own, but the score truly represents B) how likely you are to repay your debt.

Rosemary Parks · Answer 2

Which best explains what a credit score represents? B) A numerical rating that expresses how likely you are to repay your debts.

Since your credit score lets banks and lenders know how likely you are to repay your debts, you are letting the lendors see your creditworthiness. When you receive your credit score, your score is based on how much your debt to income ration is, how many lines of credit you have, and how likely you are to pay the debt off.