The option D is correct.
A credit score is based in part on the payment history and total debt.
Further Explanation:
Credit score refers to score which shows the credit history of the individual and tells us about how well an individual in paying his credit and loans. If an individual has a good credit score, he is able to take credit easily without any restrictions. But If an individual has a poor credit score, he is not able to take the credit in an easy way.
Justification for the correct and incorrect answer:
A.
Employment and race: This option is incorrect.
This is not the correct option. The credit score does not depend on individual employment and race.
B.
Income and location: This option is incorrect.
This also not the correct option. As the income of the individual does not have any relation with the credit score. The location of the individual also not a base of credit score.
C.
Employment and trust: This option is incorrect.
The bank provides a loan on the basis of collateral security, not on the basis of trust. This option is not correct.
D.
Payment history and total debts: This option is correct.
The credit score is given on the basis of payment history and total debts taken from the other banks. This statement is correct. On the basis of the credit score, the banks provide loans to the individual.
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Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Money and Banking
Keywords:credit score, is based, employment and race, income and location, employment and trust, payment history, total debt, credit history, individual, income, total debts.
