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”