Which best explains what a credit score represents?

A: A number showing how likely you are to have more than one credit card.

B: A numerical rating that expresses how likely you are to repay your debits.

C: A numerical rating that shows how much money you have in your bank account

D: A number expressing your yearly income.

A credit score can range from 350 to 850 and is a numerical rating that can show how good of a payer you are of credit. In order to increase your credit score, you must not miss payments on credit cards, important bills, and student loans. You must also have multiple accounts open which you keep low balances on and pay on time.

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avantikar avantikar · Answer 2 · 2019-11-01T18:32:50+01:00

The correct option is (B).

A numerical rating that expresses how likely you are to repay your debits best defines the credit score.

Further Explanation:

Credit score: A credit score represents the creditworthiness of an individual based on their financial transaction history. If a person has a sound and on-time payment records, then he would have a high credit score and vice versa.

Low credit score means that a person is not paying their bills and dues on time. The credit score is used by the lenders to assess the capability of the borrower to repay the debt. Generally, lenders do not prefer to lend money to the person with a low credit score.

Justification for the correct and incorrect options:

A.

A number showing how likely you are to have more than one credit card: It is an incorrect option. Credit score does not tell about the number of credit cards.

B.

A numerical rating that expresses how likely you are to repay your debits:This is the correct option. Credit score defines the creditworthiness of a person.

C.

A numerical rating that shows how much money you have in your bank account: This is an incorrect option. Credit score does not have any relation with the bank account balance.

D.

A number expressing your yearly income:This is an incorrect option. The level of income and credit score are not directly related.

Learn more:

1. 1Learn more about the credit card balance

https://brainly.com/question/6453895

2. Learn more about low credit card score

https://brainly.com/question/2828467

3. Learn more about various approaches to increase the credit score

https://brainly.com/question/6846931

Answer details:

Grade: Senior School

Subject: Business studies

Chapter: Money & Banking

Keywords:best, explains, credit score, represents, number, showing, likely, more, than, one credit card, numerical rating, expresses, repay, debits, numerical, rating, shows, money bank account, number expressing, yearly income.