What is typically included in a borrower's credit score?

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The correct response focuses on payment history and outstanding debts as key components of a borrower's credit score. Credit scoring models, such as FICO and VantageScore, rely heavily on a borrower's payment history, which accounts for around 35% of the score. This part of the score reflects how reliably the borrower has made payments on credit accounts, including credit cards and loans, in the past. Consistent on-time payments improve the credit score, while late payments can significantly harm it.

Outstanding debts, making up about 30% of a credit score, pertain to the amount of debt a borrower currently holds, particularly in relation to their credit limits. This aspect evaluates how much credit is being utilized compared to the total available credit, referred to as the debt-to-credit ratio. A lower ratio indicates a responsible use of credit, which positively affects the score.

In contrast, other options do not influence the credit score directly. For instance, current property value is not a factor; it's more relevant to appraisals and loan-to-value calculations rather than credit scoring. Job status and income level, while important for loan approval and affordability assessments, are not included in credit scores. Lastly, different loan types do not affect the score; what matters is

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