What is Credit Score?
A three-digit summary of your credit worthiness is known as a credit score. A Credit Score depicts your ability to manage debt. In order to avail certain financial products like a personal loan, home loan, business loan etc, credit score is the first thing any financial institution or bank looks at, before sanctioning a loan amount. It is very important to avail a good credit score in order to get the best rates with various financial products.
The Credit Information Companies (Regulation) Act, 2005, was authorized by the RBI in order to generate the Credit Ratings, Credit Reports and Credit Scores based on the information shared by banks and financial institutions.