ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The lpwer your credit score, the more creditworthy you are
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The higher your credit score, the more creditworthy you will be.
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There is no correlation between credit score and creditworthiness
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None of the above
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Detailed explanation-1: -Your creditworthiness is also measured by your credit score, which is a three-digit number based on factors in your credit report. A high credit score means your creditworthiness is high and a lower credit score indicates lower creditworthiness.
Detailed explanation-2: -Your credit score is one of the most important measures of your creditworthiness. For your FICO® Score, it’s a three digit number usually ranging between 300 to 850 and is based on metrics developed by Fair Isaac Corporation. By understanding what impacts your credit score, you can take steps to improve it.
Detailed explanation-3: -The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, repayment history, and other factors.
Detailed explanation-4: -How does my income affect my credit score? Your income doesn’t directly impact your credit score, though how much money you make affects your ability to pay off credit card debt, which in turn affects your credit score. “Creditworthiness” is often shown through a credit score.
Detailed explanation-5: -A credit rating measures the ability of a business or government to repay its financial obligations by looking at its history of borrowing and repaying loans. A credit score does the same, but measures individuals (and in some cases, small businesses).