Understanding “credit scores” is crucial for ESL learners, just like you, while navigating the financial systems in English-speaking countries. A good credit score is essential for securing loans, renting apartments, and even obtaining certain jobs. By learning about credit scores, you can improve your financial literacy, make informed decisions, and avoid potential pitfalls. Today’s vocabulary can help you build a strong financial foundation and much more. Let’s jump right in!

5 TERMS

1. Creditworthiness (Noun): The ability of an individual or business to repay debt, as assessed by a lender.

2. FICO Score (Noun): A type of credit score created by the Fair Isaac Corporation, used by lenders to assess credit risk.

3. Debt-to-Income Ratio (Noun): A percentage that shows how much of a person's income goes toward paying debt.

4. Utilization Rate (Noun): The ratio of credit card balances to credit limits, often used to assess credit risk.

5. Credit Report (Noun): A detailed record of an individual’s credit history, including credit accounts, payments, and inquiries.

ENGLISH RESOURCES

• A special English resource for you: Master English Tips Pack

• Check out today’s practice lessons in the English With Tiffani App

• Watch this English video: Master English Vocabulary In 3 Steps