Credit score
Also called: FICO score
A credit score is a number, usually from 300 to 850 in the US, that estimates how likely a person is to repay debts. Higher scores get cheaper loans.
It is calculated mostly from payment history, how much of your available credit you use, and how long you've had credit.
Related terms
- Interest rate: An interest rate is the price of borrowing money, stated as a percentage of the loan per year.
- Collateral: Collateral is an asset a borrower pledges to a lender, which the lender can take or sell if the loan isn't repaid.
Practise with $10,000 in play money
Free. No real money involved.
For learning only. This isn't financial advice.