Which aspect is typically factored into a credit score?

A credit score is a numerical representation of a person's creditworthiness, and it is influenced by several key factors. Among these, credit inquiries play an important role. When an individual applies for credit, lenders will perform a credit inquiry to assess the applicant's credit history and credit score. There are two types of inquiries: hard inquiries and soft inquiries. Hard inquiries can slightly lower a credit score as they may indicate to lenders that the individual is seeking new credit, which could increase financial risk.

While account balances are also relevant to credit cards and loans, as they can affect utilization rates, they do not directly represent the scoring metric itself in the same way that credit inquiries do. Investment portfolios and choice of profession do not typically impact the credit score calculation, making them unrelated to how credit scoring works. Therefore, the presence and frequency of credit inquiries are a critical factor in evaluating credit risk and producing a credit score.