What is defined as a credit score?

A credit score is fundamentally a numerical representation of a consumer's creditworthiness. This score distills various aspects of an individual's credit history, such as payment history, credit utilization, length of credit history, new credit inquiries, and types of credit used into a single, easily interpretable number. This numerical value often ranges from 300 to 850, with higher scores indicating better creditworthiness.

Lenders and creditors utilize this score to assess the risk of lending money to an individual, helping them to make informed decisions about approvals for loans, mortgages, credit cards, and other financial products. A strong credit score typically translates to more favorable lending terms, such as lower interest rates and larger loan amounts.

The other options describe related but distinct concepts. For instance, a detailed report of a consumer's financial history points to a credit report, which contains comprehensive information but is not a score itself. An estimate of future income is irrelevant in this context as it does not pertain to creditworthiness. A summary of outstanding loans and debts pertains to specific financial obligations but does not convey the overall creditworthiness that the score encapsulates.