Which number is assigned to individuals to indicate their creditworthiness to lenders?

The number assigned to individuals to indicate their creditworthiness to lenders is the credit score. This score is a numerical expression derived from a person's credit history, which is recorded by credit bureaus. It reflects how well an individual manages their credit and financial obligations. A higher credit score generally suggests that an individual is more likely to repay borrowed money, making them a more attractive candidate for loans or credit cards. Therefore, lenders heavily rely on this score to make lending decisions, as it helps them assess the risk associated with lending to specific individuals.

On the other hand, while the debt ratio is a measure of an individual’s total debt compared to their income, it does not represent overall creditworthiness as succinctly as a credit score. The loan index and financial health score are terms that might relate to broader financial metrics but do not specifically denote an individual’s creditworthiness in the same established and widely recognized manner as a credit score does.