what is credit score rating?

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1. It is a indication on how well you pay off your debts and whether your payments were on time or not.
2. There is no sure way to determine what factors are used in calculating credit score ratings, but there are quite a few that remain more or less constant. These include: Debt and payment history on credits, such as credit cards, student loans, consumer loans, car loans, among others Current debts Time length of credit history Credit type mix Frequency of applications for new credit or inquiries for new credit And other factors that may be taken into account, such as tax liens, judgments, and bankruptcies These are all information found in your credit report. When these factors are broken down, it would show that your payment history or propensity for paying off your debt has the highest percentage – meaning, it is heavily weighed factors in your credit score rating.
3. A credit score rating is the number assigned to evaluate a person's credit risk. The range is 300 - 850, and the higher the number, the better. The company that generates the credit score is called FICO (Fair Isaac Company), and the number is based on the credit information stored in the credit bureaus' reports. It is used to calculate potential risk to creditors so they can determine whether they should lend money or give credit to an individual.