ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit scores reflect how likely individuals are to repay their debts.
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Credit Scores range from the low 300’s to the mid 800’s.
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Each person has three credit scores.
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All of the above.
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Detailed explanation-1: -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. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.
Detailed explanation-2: -Credit scores typically range from 300 to 850. Within that range, scores can usually be placed into one of five categories: poor, fair, good, very good and excellent.
Detailed explanation-3: -A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts. Your credit scores are calculated based on the information in your credit report.
Detailed explanation-4: -Which of the following does a credit score MAINLY indicate? The answer is “risk of not repaying a loan.” The other factors may influence this risk, but it is the risk itself that a credit score tries to measure.