A credit score is one of the most important parameters to judge the creditworthiness of a borrower. All reputed banking and non-banking financial institutions ask for a credit score from the borrower before processing their loan application. It is safer for financial institutions to lend money to individuals with a good credit score as they are less likely to default on their loan repayments. Borrowers who have a poor credit score are highly likely to default on their bill payments given their past track record. A credit score test is like a litmus test for lending institutions. One can easily make a credit history consider on line before opting for a loan to have a better idea.
What’s a credit rating?
The credit score can be defined as a numerical expression you to definitely quantifies somebody’s creditworthiness predicated on a comprehensive studies of the credit score. A credit score is gotten after best investigations of your subject’s credit history regarding accepted and you may respected credit bureaus.
