Definition of «low credit score»

A low credit score is a numerical representation of an individual's or entity's ability to manage their debt. It is calculated based on various factors such as payment history, outstanding balances, types of credit and length of credit history. A low credit score indicates that the person has had difficulty managing their financial obligations in the past, making them a higher risk for lenders. This can result in higher interest rates or denial of loans, leases, or credit cards. Improving one's credit score typically involves paying off debts, reducing outstanding balances and demonstrating consistent payment history over time.

Phrases with «low credit score»

Sentences with «low credit score»

  • Applicants with low credit scores combined with low debt to income ratios often have a poor payment history. (growingfamilybenefits.com)
  • This will not only stay on your report for a long time, it has the effect of lowering your credit score by few points. (myfinancekits.com)
  • There's a large selection of mortgage loans geared toward first - time home buyers, and which allow for lower credit scores. (themortgagereports.com)
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