Definition of credit score

credit scorenoun

điểm tín dụng

/ˈkredɪt skɔː(r)//ˈkredɪt skɔːr/

The concept of a credit score dates back to the 1950s when a group of lending institutions in the United States began developing mathematical models to measure the creditworthiness of their potential borrowers. These models, also known as credit scoring systems, took into account various financial factors such as payment history, debt, length of credit history, and recent credit activity. The term "credit score" was coined as a result of these systems, as a way to communicate a person's creditworthiness to potential lenders in a simple and straightforward manner. The first widely used credit scoring model, developed by Fair, Isaac and Company (commonly known as FICO), was introduced in the mid-1950s and became a standard tool for lenders to assess credit risk. Today, credit scores are a vital part of the lending process in many countries, and are used to determine the interest rates, loan amounts, and terms offered to borrowers. While the specific factors and weightings used in calculating credit scores may vary by scoring model and jurisdiction, they are generally calculated using complex algorithms and statistical techniques that consider a variety of credit-related data. In summary, the term "credit score" can be traced back to the development of credit scoring models in the 1950s, which have since become an essential tool in the lending industry for assessing risk and making sound lending decisions.

namespace
Example:
  • John was surprised to see that his credit score had improved by 50 points after paying off his credit card debt.

    John rất ngạc nhiên khi thấy điểm tín dụng của mình đã tăng 50 điểm sau khi trả hết nợ thẻ tín dụng.

  • Sarah's credit score began to decline when she missed a few credit card payments due to unexpected expenses.

    Điểm tín dụng của Sarah bắt đầu giảm khi cô chậm thanh toán một số khoản thẻ tín dụng do chi phí bất ngờ.

  • In order to buy a house, Mark and his wife spent several months working on improving their credit scores.

    Để mua nhà, Mark và vợ đã dành nhiều tháng để cải thiện điểm tín dụng của mình.

  • The bank approved Emily's loan application because of her excellent credit score, which was above 750.

    Ngân hàng đã chấp thuận đơn xin vay của Emily vì điểm tín dụng của cô ấy rất tốt, trên 750.

  • After disputing some errors on his credit report, Thomas saw a significant increase in his credit score.

    Sau khi khiếu nại một số lỗi trong báo cáo tín dụng, Thomas thấy điểm tín dụng của mình tăng đáng kể.

  • Although Rachel had been diligent about paying her bills on time, a mistake on her credit report caused a significant drop in her credit score.

    Mặc dù Rachel đã siêng năng thanh toán hóa đơn đúng hạn, nhưng một lỗi trong báo cáo tín dụng đã khiến điểm tín dụng của cô giảm đáng kể.

  • The hotel required Jamie to have a credit score of at least 650 in order to apply for their credit card.

    Khách sạn yêu cầu Jamie phải có điểm tín dụng ít nhất là 650 để có thể đăng ký thẻ tín dụng.

  • Since Jim's credit score was low, he had to pay a higher interest rate on his car loan than he would have with a better credit score.

    Vì điểm tín dụng của Jim thấp nên anh ấy phải trả lãi suất vay mua ô tô cao hơn so với người có điểm tín dụng tốt hơn.

  • Because Jill had a history of bankruptcy, her credit score was low and made it difficult for her to get approved for a personal loan.

    Vì Jill có tiền sử phá sản nên điểm tín dụng của cô ấy thấp và khiến cô ấy khó được chấp thuận khoản vay cá nhân.

  • After receiving a copy of his credit report, Jack realized that he had fallen victim to credit card fraud and his credit score had been negatively impacted as a result.

    Sau khi nhận được bản sao báo cáo tín dụng, Jack nhận ra rằng mình đã trở thành nạn nhân của gian lận thẻ tín dụng và điểm tín dụng của anh đã bị ảnh hưởng tiêu cực.