Which term is the rating used by credit reporting companies to determine whether and/or how much credit can be extended to a borrower?

• A. Debit Card
• B. Credit Score
• C. Work Ethics
• D. Professional Organization

Answer: (B)

The main idea is how lenders gauge how much credit to extend to a borrower. A credit score is the rating used by credit reporting companies to assess risk and decide whether to approve credit and what terms to offer. It’s derived from information in the borrower's credit report—things like payment history, amounts owed, length of credit history, new credit inquiries, and the mix of credit types. Higher scores generally mean a borrower is seen as lower risk, leading to a higher likelihood of approval and better interest rates or credit limits. The other options don’t fit: a debit card is simply a payment method, work ethic is a personal trait, and a professional organization is an association, not a credit rating.