Which of the following reflects the range of credit scores?

Which of the following reflects the range of credit scores?

• A. 200 to 700
• B. 300 to 850
• C. 400 to 800
• D. 250 to 900

Answer: (B)

The range of credit scores is correctly captured by the choice that states 300 to 850. This range is established by the most commonly used credit scoring models, such as FICO and VantageScore. A score of 300 represents a very poor credit history, while a score of 850 signifies excellent creditworthiness. Each score within this range reflects different levels of repayment history and credit risk, with higher scores indicating lower risk to lenders. Understanding this range is crucial for individuals looking to manage their credit effectively, as it directly impacts their ability to secure loans and the interest rates they may be offered. Only scores within this 300-850 range are typically used by lenders when assessing potential borrowers. Hence, recognizing this range helps in making informed financial decisions.

The range of credit scores is correctly captured by the choice that states 300 to 850. This range is established by the most commonly used credit scoring models, such as FICO and VantageScore. A score of 300 represents a very poor credit history, while a score of 850 signifies excellent creditworthiness. Each score within this range reflects different levels of repayment history and credit risk, with higher scores indicating lower risk to lenders.

Understanding this range is crucial for individuals looking to manage their credit effectively, as it directly impacts their ability to secure loans and the interest rates they may be offered. Only scores within this 300-850 range are typically used by lenders when assessing potential borrowers. Hence, recognizing this range helps in making informed financial decisions.