Realized 1031 Glossary of Terms

Credit Score

Written by The Realized Team | Jun 27, 2022 12:00:00 PM
A credit score is an index that quantifies an individual consumer’s history of creditworthiness and his or her probability of repaying future debts. A credit score ranges from 300 to 850; the higher the score, the more trustworthy a lender considers a consumer. 

FICO is the most commonly accepted method of credit score. A credit score is a key component of a lender’s decision to extend a line of credit to an individual. Individuals with credit scores below 640 are considered subprime borrowers, while borrowers with credit scores above 700 are considered creditworthy.