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Credit score - Financial definition

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Concise definition of the term credit score

A credit score is a numerical representation of an individual's creditworthiness based on their credit history.

Comprehensive definition of the term credit score

A credit score is a quantifiable measure utilized by lenders to assess the likelihood of a borrower repaying a loan. It's calculated from various factors including payment history, credit utilization, length of credit history, types of credit accounts, and new credit inquiries. This score influences loan approvals, interest rates, and credit limits, impacting financial opportunities such as mortgages, auto loans, and credit cards.

Additional information related to this definition

Definitions of related terms

Borrower  •  Credit card  •  Interest rate  •  Lender  •  Loan  •  Mortgage loan

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