What is the purpose of a credit score?

Question

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1 point
to set how much money you can spend on a house
to let banks measure the risk of a loan
to keep expensive homes in the right families

Answer 1

The correct answer is: to let banks measure the risk of a loan.

A credit score is primarily used by lenders to evaluate the likelihood that a borrower will repay their debt, thus helping them assess the risk associated with lending to that individual.