Personal Finance

Credit Score

Definition

What is Credit Score?

A numerical assessment of a borrower's credit risk based on credit history and other data.

Example in practice

A stronger credit score may qualify the borrower for a lower interest rate.

Keep learning

Money set aside rather than spent, often for emergencies or future goals.

Liquid savings reserved for unexpected expenses or income disruption.

Total assets minus total liabilities.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.