A number assigned to a person that indicates their capacity to repay a loan. A loan applicant’s creditworthiness is based on their credit history, or their demonstrated ability to repay past debts. A consumer’s credit history is based on:
- Types of credit accounts
- Loan amounts
- Credit used
- Timeliness of repayment
- Number of credit inquiries
Consumer credit scores range from 300 to 850. The higher the score indicates a consumer is more likely to repay their debts. According to credit sesame, credit scores may fall into the following categories:
- Excellent: 750 & Above
- Good: 700 – 749
- Fair: 650 – 699
- Poor: 550 – 649
- Bad: 500 & Below