Credit Score
Updated: 11 March 2024
What Does Credit Score Mean?
A credit score is a number given by lenders to represent how much a person is capable of paying a debt. The score is based on the person’s credit history, among other factors, with a high score indicating that they are trustworthy when it comes to making debt payments.
Insuranceopedia Explains Credit Score
Financial institutions use the credit score to evaluate a person’s ability to pay a debt. The score ranges from 300 to 800, the highest score a person can achieve. A score of 700 or above is generally considered good. The higher the score, the better it shows a person’s capability of paying debts.
A person’s credit score will affect their dealings with banks and other financial institutions. If they get a low credit score, they are unlikely to be approved for a big loan.
