Kreditsetel

Kreditsetel, also known as credit score or credit rating, is a numerical representation of an individual's or entity's creditworthiness. It is used by lenders, landlords, and other financial institutions to evaluate the risk associated with extending credit or entering into a financial agreement. Credit scores are typically calculated based on a person's credit history, including factors such as payment history, amounts owed, length of credit history, new credit, and types of credit used.

Credit scores are generated by credit bureaus, which are companies that collect and maintain records of individuals' and entities' credit activities. The most widely used credit scoring models in the United States are the FICO score, developed by Fair Isaac Corporation, and the VantageScore, developed by the three major credit bureaus (Equifax, Experian, and TransUnion).

A high credit score indicates a low risk of default, making it easier for individuals to obtain credit at favorable terms. Conversely, a low credit score suggests a higher risk of default, which can result in higher interest rates, fees, or even denial of credit. Regularly monitoring and maintaining a good credit score is essential for individuals to access credit and other financial services at favorable terms.