What do banks and other lenders use to evaluate your ability to repay a loan?(1 point)

Question

Responses

bankruptcy

credit score

debit

interest rate

explain which is correct

Answer 1

The correct answer is credit score. Banks and other lenders use your credit score to evaluate your ability to repay a loan. This score is based on your credit history, including your payment history, amount of debt, and length of credit history. A higher credit score indicates to lenders that you are more likely to repay the loan, while a lower credit score may lead to higher interest rates or even being denied a loan.