11
AssignmentLong Text

Understanding Credit

Question 11 • Personal Finance - EL3403

Be sure to describe what a credit score is and how it is used by lenders.

Answer

Answer:

Yes, Ahmed has a very good credit score. A credit score is a numerical rating that shows how good one’s credit is. It ranges from 300 to 850. Lenders will use his credit score to determine how likely it is that he will pay back the loan. With a score of 750, they will be confident that he will pay the money back.

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