Question

Unlike his friend who has a credit score of 450, Rashid has a credit score of 688, which lets him purchase more goods on credit than his friend. Based on the FICO scale, Rashid falls under the _____________________________ category of creditworthiness.

Answer 1

Answer: The Good Category

Explanation: A credit score is a calculated number ranging from 300-850 which elucidates an individual's creditworthiness and evaluates the probability that a lender will repay his loan with a higher score indicating higher creditworthiness.

This is calculated by factoring 5 key stats.

1. Payment history

2. Credit history

3. Credit utilization rate

4. New credit and,

5. Types of credit

A FICO score of 688 falls under the "Good" category which ranges from 670-739.