Curious about Credit and Funding

Your credit score plays a significant role in determining your ability to access credit and funding. A credit score is a numerical representation of your creditworthiness, calculated by credit bureaus based on your credit history. It takes into account factors such as your payment history, credit utilization, length of credit history, types of credit used, and recent credit inquiries.

Lenders and financial institutions use your credit score to evaluate your risk as a borrower and determine the likelihood of you repaying the loan. If you have a high credit score, you are more likely to be approved for credit and offered more favorable terms, such as lower interest rates and higher credit limits. On the other hand, if you have a low credit score, you may be denied credit or offered less favorable terms.

In India, credit scores are generated by credit bureaus such as CIBIL, Experian, Equifax, and CRIF High Mark. These bureaus collect creditrelated information from various sources, including banks, credit card companies, and other financial institutions, to generate credit scores. It is essential to maintain a good credit score by making timely payments and avoiding default on loans or credit cards, as it can significantly impact your ability to access credit in the future.