What Is Credit Score?
                       What Is Credit 
Score
Introduction:
 An individual's creditworthiness is 
represented numerically by their 
credit score. 
 Lenders, landlords, insurers, and 
other financial institutions use this 
three-digit number to evaluate the 
risk of granting credit, making loans, 
or offering other financial services to 
an individual. 
 When evaluating a person's 
eligibility for credit and the terms 
               Source: time.com (interest rates, credit limits, etc.) 
that they may be granted, credit 
scores play a crucial role.
Numerical Scale: 
 In the US, credit scores normally fall 
between 300 and 850, however 
individual country-specific scoring 
models may differ. 
 Better creditworthiness is indicated by 
higher scores, and higher credit risk is 
suggested by lower scores.
               Source: credible.com
Calculation:  
 Credit reports, which contain 
information on credit accounts, 
payment histories, outstanding debts, 
public records (such as tax liens or 
bankruptcies), and lender inquiries, 
are the primary source of information 
used to calculate credit scores.
  Different credit scoring models have 
different algorithms for calculating 
credit scores; two popular models in 
the US are FICO and VantageScore.
               Source: fico. com
Credit Reporting Bureaus: 
 Also referred to as credit bureaus or 
credit reporting agencies, credit 
reporting bureaus compute credit 
scores. 
 Equifax, Experian, and TransUnion are 
the three main credit bureaus in the 
US. These organizations gather and 
preserve personal credit data.
               Source: etmoney. 
com
Key Factors: 
 The key factors that influence a 
credit score include payment history 
(timely payment of bills and loans), 
credit utilization (the amount of 
available credit used), length of 
credit history, types of credit 
accounts (credit cards, installment 
loans, etc.), and recent credit 
inquiries.
               Source: swandetail. 
com
Lending Decisions: 
 Credit scores are a tool used by 
lenders to assess an applicant's 
credit risk. More favorable loan 
terms, like lower interest rates and 
higher credit limits, are typically 
associated with higher credit scores.
  Credit denial or less favorable terms 
could arise from lower scores.
               Source: 
creditreportrepair.info
Monitoring and Improvement: 
 To guarantee accuracy and spot 
potential areas for improvement, 
people can keep an eye on their 
credit reports and scores. 
 Keeping up a high credit score can 
be beneficial for future borrowing 
requirements, like getting a credit 
card, mortgage, or auto loan.
               Source: 
moneycontrol.info
Credit Repair: 
 Credit repair services and strategies 
are available to help people with 
damaged or poor credit gradually 
raise their credit scores. 
 This could entail responsibly 
managing credit, paying off 
outstanding debts, and challenging 
false information on credit reports.
                     Source: mint.com
Conclusion:
A credit score is a figure that 
expresses a person's 
creditworthiness based on their 
financial behaviour and credit 
history. 
It is essential to many financial 
transactions and has a big influence 
on someone's capacity to get credit 
and the conditions attached to it.
                   Source: 
geekflare.com