A credit score is a number that typically ranges from 300 – 850 and is used by financial institutions to evaluate a credit applicants ability and willingness to pay back the funds they’re requesting to borrow. Credit scores can also reflect how responsible an individual is when applying for a job, how likely they are to pay for their rental property on time or to access risk when applying for insurance.
The most common types of financial institutions include commercial banks, investment banks, brokerage firms, insurance companies, and asset management funds. Other types include the financial departments of “buy here, pay here” auto dealerships and furniture rental stores, credit unions, and finance firms.
Types of credit scores
Typically there are two types of credit scores:
However, you may also find industry specific scores.