The Beginner's Guide To Credit Scores
When you go to a bank or an NBFC to get a loan, they'll usually ask you what your credit score is. They'll look at this info before deciding if you're good to go. Your credit score is the starting point for getting the money you need. Here’s a beginner’s guide to understanding credit scores. Understanding Credit Scores Basically, a credit score is a number that tells you how likely you are to pay back what you borrowed. In India, you can get your credit score from credit bureaus like CIBIL. These bureaus collect info from different financial institutions like banks, credit cards, and lenders to make up your credit report. Also Read: What Is Loan Settlement And How Does It Affect Your Credit Score? Components of a Credit Score Payment History: The payment history of an individual is the most influential factor in determining their credit score. It is a record of whether or not they have made regular payments on their loans, credit cards and other debts. Paying bills on ti...