A credit score is a number a bureau uses to express how likely a person is to meet their payment obligations.
A credit score is a number a bureau uses to express how likely a person is to meet their payment obligations.
Also called: FICO score, Credit rating.
How it works#
Which data feed the score and how they are weighted is decided by each bureau and only partly published. Statements from one country therefore do not transfer to another: German and US scoring use different inputs and scales. What they share is that on-time payments and long account histories help, while missed payments weigh heavily against.
Not to be confused with#
A credit score is not the same as the outcome of a card application: lenders also assess income, existing obligations and their own internal rules.
In German#
The German term is Bonitätsscore. German version of this term
Related terms#
- Credit inquiry: A credit inquiry is a lender’s check of a credit file; a hard inquiry is recorded and visible to others, while a soft inquiry is not.
- Credit utilization: Credit utilization is the ratio between the balance on a card and its credit limit, expressed as a percentage.
- Carrying a balance: Carrying a balance means leaving part of a card bill unpaid so that it rolls into the next month and accrues interest.
Articles that use this term#
TopicEvery article and term onCards and money.