Credit Score
Updated: 03 January 2025
What Does Credit Score Mean?
A credit score is a number assigned by lenders to represent an individual’s ability to repay debt. It is based on the person’s credit history, among other factors, with a higher score indicating greater trustworthiness in managing debt payments.
Insuranceopedia Explains Credit Score
Financial institutions use credit scores to assess a person’s ability to repay debt. The score ranges from 300 to 800, with 800 being the highest possible score. A score of 700 or above is generally considered good. The higher the score, the more it reflects a person’s reliability in repaying debts.
A person’s credit score significantly impacts their interactions with banks and other financial institutions. A low credit score makes it less likely for them to be approved for a large loan.
