Examining the Nuances of Credit Scores & Credit Risk in India

What is a Credit Score?

A credit score is essentially a determination of the capacity of an individual to repay the borrowed sum of money on credit. This statistic primarily mirrors the creditworthiness of a person wanting to access credit in the future. The credit rating agencies, or the Credit Information Companies (CICs), viz. Equifax (ECIS), CRIF High Mark, CIBIL TransUnion—the first CIC in India, and Experian, generally assimilate the required data on various determinants such as the duration of the credit subscription, repayment history, credit inquiry, etc., to determine the credit score statistic of the credit-seeking applicant. Continue reading “Examining the Nuances of Credit Scores & Credit Risk in India”

Why CIBIL score is important?

Before we get into the why, what is a CIBIL score?

To put in layman’s language, it is nothing but a 3 digit number between 300 to 900 decided by CIBIL, a Credit Information company based on all your credit-related activity within the financial system. This number acts as the first impression for the lender, the higher the score, the better the chances of the loan/credit card being approved. Hence, a CIBIL score is a clear indication to a bank about your financial history on which your credit-worthiness is decided. Continue reading “Why CIBIL score is important?”

10 Ways To Increase Your CIBIL Score in 2017

In today’s world, we need money to make money. With a plethora of banks and lending agencies opening up everywhere, one might think that procuring money will become easier, but this might not always be the case. Lending money involves huge risk and thus almost all financial organizations rely on certain criteria to index the repayment capacity of an applicant. A credit score is Continue reading “10 Ways To Increase Your CIBIL Score in 2017”