What term refers to the number in the range 300-850 used by lenders to evaluate whether a person can be trusted to pay back money they borrow?

• A. Credit score
• B. Credit history
• C. Credit bureau
• D. Credit report

Answer: (A)

Lenders rely on a numeric measure of creditworthiness to quickly assess risk. The term described is credit score—a single number in the 300–850 range that reflects how likely you are to repay a loan. This score is computed from your credit history data, including on-time payments, amounts owed, length of credit history, new credit activity, and the mix of credit you have. A higher score indicates lower risk, which can lead to better interest rates and loan terms. Related concepts include your credit history (the actual record of your borrowing and payments), a credit bureau (the organization that collects and maintains your credit data), and a credit report (the document that shows your accounts and history). The important point is that the numeric measure lenders use to gauge trustworthiness is the credit score.