Credit Score

Business, Legal & Accounting Glossary

Definition: Credit Score




Full Definition of Credit Score


A credit score is a value computed by a credit reporting agency, or credit bureau, and based upon information about a person collected by the agency. The credit score is sold by subscription to banks and other companies, who use the credit score when making credit decisions. Three major credit bureaus compute their own credit score for an individual. Typically, a lower credit score (i.e. below 600) will reduce the consumer’s eligibility for credit products. As a result, a lower credit score tends to increase the cost of credit. Under federal law, an individual may obtain (free upon request) the credit report from which their credit score is based if credit is denied. Credit reports can also be obtained for free once per year. Some of the more common factors that are used to determine a person’s credit score are payment punctuality, current debt to available credit limit ratio, and length of credit history.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/credit-score/
Modern Language Association (MLA):
Credit Score. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 28, 2021 https://payrollheaven.com/define/credit-score/.
Chicago Manual of Style (CMS):
Credit Score. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/credit-score/ (accessed: September 28, 2021).
American Psychological Association (APA):
Credit Score. PayrollHeaven.com. Retrieved September 28, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/credit-score/

Definition Sources


Definitions for Credit Score are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 1 Views.