What is a function of a credit score?

A credit score is fundamentally designed to assist lenders in evaluating the credit risk associated with borrowing money. This numerical representation of a person's creditworthiness is based on various factors, including payment history, amount of debt, length of credit history, types of credit in use, and recent credit inquiries. When a lender reviews a credit score, they gain insight into the likelihood that the borrower will repay their debts as agreed. This information is crucial for lenders to make informed decisions regarding loan approvals, interest rates, and lending terms.

In contrast, other options describe functions or tools that do not align with the primary role of a credit score. For example, providing a detailed health report pertains to health metrics rather than financial assessments. Estimating years until retirement focuses on long-term financial planning rather than creditworthiness. Recording utility payments is more related to payment tracking than credit scoring and is not a direct function of a credit score itself.