What does a credit score represent?

A credit score is a statistical representation of an individual's credit history, which quantifies how likely a person is to repay borrowed money based on their past behavior with credit. This score is calculated using various factors such as payment history, amounts owed, length of credit history, types of credit in use, and new credit inquiries. Lenders use credit scores to evaluate the risk of lending money or extending credit to an individual, making it a crucial element in the decision-making process for loans, mortgages, and other financial products.

Other options do not accurately reflect what a credit score represents. An estimate of future earnings relates to income potential rather than creditworthiness. A summary of an insurance policy involves details about coverage but does not pertain to credit at all. The amount of taxes owed concerns tax liabilities, which are separate from an individual's credit history and scoring. Thus, the specific focus on credit history in defining a credit score is what makes the correct answer significant in understanding its role in personal finance.