Credit Rating
| Credit ratings are important metrics used by lenders to determine whether a borrower is likely to repay a loan. Credit ratings are determined by a number of factors, including credit history, income, and assets. A high credit rating indicates that a borrower is a low-risk and is more likely to repay a loan. A low credit rating, on the other hand, indicates that a borrower is a high-risk and is less likely to repay a loan. As such, lenders typically charge higher interest rates to borrowers with low credit ratings in order to offset the risk of default. |
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