Respuesta :
The credit rating companies use a variety of different factors to determine whether or not someone is a good credit risk. One of the main factors that they look at is called the "compound interest."
This is the amount of interest that the person has to pay on their outstanding debt. The higher the compound interest, the higher the risk that the person will default on their debt.
Another factor that credit rating companies look at is called the "three C's." These are character, collateral, and capacity. Character refers to the person's past credit history. Collateral refers to the value of the assets that the person has to offer as collateral for a loan. Capacity refers to the person's ability to repay the loan.
Credit rating companies use these factors to determine whether or not someone is a good credit risk. If the person has a high compound interest rate, a poor credit history, and no collateral, then the credit rating company will likely give them a low credit score.
Learn more about compound interest at : https://brainly.com/question/14295570
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