Krediidiskori

Krediidiskori, or credit score, is a numerical representation of an individual's creditworthiness. It is calculated based on a person's credit history, which includes information from lenders, credit bureaus, and public records. The score helps lenders assess the risk involved in lending money to an individual. A higher score generally indicates a lower risk, making it easier to obtain loans, credit cards, and other financial products, often with more favorable terms. Conversely, a lower score can make it difficult to secure credit and may result in higher interest rates or outright rejection.

Factors that influence a credit score include payment history, the amount of debt owed, the length of credit history, the types of credit used, and new credit applications. Making payments on time, keeping credit utilization low, and avoiding excessive new credit applications are key to maintaining a good credit score. In Estonia, common credit bureaus that compile this information include Krediidiinfo. Lenders and financial institutions use these scores to make informed decisions about loan approvals, interest rates, and credit limits. Understanding and managing one's credit score is an essential aspect of financial health.