A credit score is a number that shows you how high your credit risk is. It is the quantification of your creditworthiness evaluation. The score determines the lender's decision, whether to offer credit to you or not? And at what level.
Credit scoring is statistical modeling to produce your credit score, which represents your creditworthiness. It includes various variables, such as: Historical total debt and timely payment. Late payments hurt credit scores.The
Credit risk refers to the borrower's uncertainty in meeting obligations on time, according to the contract. When you apply for a new loan, the bank bears credit risk, i.e., you may not be able to repay on time. If you are a bondholder, the