Personal Finance
Credit Score
Definition
What is Credit Score?
A numerical assessment of a borrower's credit riskThe possibility that a borrower or issuer will fail to make promised payments or suffer a downgrade. based on credit history and other data.
Example in practice
How This Looks in Practice
A stronger credit score may qualify the borrower for a lower interest rateThe price of borrowing money or the return paid for lending it..
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Related Terms
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Savings
Money set aside rather than spent, often for emergencies or future goals.
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Liquid savings reserved for unexpected expenses or income disruption.
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Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.