krediitskore

Kredittskore, also known as credit score, is a three-digit numerical value that represents an individual's or business's creditworthiness. It is used by lenders to evaluate the risk of lending or extending credit to the subject. The score is typically calculated based on a person's credit history, which includes information on their past payments, debts, and financial behavior.

In Estonia, kredittskore is maintained by Krediidiinfo, a non-profit credit information bureau. The score ranges from 0 to 399, with higher scores indicating a better credit history. A good kredittskore score can provide access to favorable loan terms and interest rates, while a lower score may limit borrowing options or result in higher interest rates.

The calculation of kredittskore takes into account various factors, including:

* Payment history, including on-time payments and any missed or late payments

* Credit utilization, which is the percentage of available credit being used

* Length of credit history

* Credit mix, such as different types of credit accounts (e.g., loans, credit cards)

* Public records, such as bankruptcies or foreclosures

A good kredittskore score can also benefit individuals in other ways, such as when applying for apartments or mortgages. Lenders and other organizations may consider the score when making decisions about lending or granting credit.

Overall, kredittskore plays an essential role in assessing an individual's or business's creditworthiness and managing financial risk.