The statement which is not true about a credit score is A, “The more money you make, the higher your credit score.” The amount of individual’s money doesn’t affect his credit score because credit score is not only counted based on the amount of the money.
EXPLANATION:
Credit scoring is an analysis or investigation made or performed by the financial institutions and lender to access an individual’s creditworthiness. It is applied by the lender to help him decide whether he should extend or deny an individual’s credit. Credit scoring becomes so important when it comes to lending money to afford another stuff like a car, home, or smartphone.
The rate of credit scoring varies from 300 to 850. 300 is the lowest credit rating while 850 is the highest credit rating that someone could gain or get. A credit score impacts an individual’s financial transaction including private loans, mortgages, credit cards, and auto loans.
There are five categories which affect the rate of an individual’s credit score. These five categories influence the credit rating’s decision. Those five categories are new credit, payment history, types of credit, length of credit, and current debt. An individual has to pay special attention to payment history and current debt.
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KEYWORDS: credit score
Subject: Business
Class: 7-9
Sub-chapter: Credit scores
