Who Issues Credit Rating Or Credit Score? How Is It Calculated?

Who Issues Credit Rating Or Credit Score

The Reserve Bank Of India is having various authorized firm that have authority to provide the credit scores for the individuals which is calculated on the basis of their past performances. So, the question who Issues Credit Rating or Credit Score and how is it calculated is the mostly asked query by the applicants?

Well, the authorized corporations have been registered under the credit information companies (regulation) act 2005. The credit/FICO scores are basically issued by four main credit bureaus of India such as Experian, Equifax, HighMark™ and CIBIL™. Among all the bureaus, the CIBIL is one of the oldest bureaus of India.

 

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Who Issues Credit Rating Or Credit Score

 

How Often Is Your Credit Score Calculated?

Commonly, it has been seen that the lenders provide positive as well as negative information to the credit bureaus each month. On the basis of that information, the credit scores have been calculated and credit report is being prepared.

The credit rating must be falling under the category of 300-900 and if credit score is near to 900, then there are more chances for obtaining good deals while applying for loan. The idea scores must be 750 or more than this which is considered by most of the banking as well as non-banking financial companies.

 

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How Can Individuals Get Their FICO Scores?

  • To obtain the credit scores, applicants are required to provide the asked details in any of the three credit bureaus including Experian, Equifax and CIBIL™.
  • Alternatively, you can also log in to the website of any of the three bureaus to know about the credit scores.

 

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Factors Impacting On Credit Score

  • The most important component is past performance of applicants that contributes approximately 30 per cent weightage to the Credit Score or CIBIL Score.
  • To determine the credit scores, the credit type and duration of loan helps a lot. It contributes an additional 25 per cent to the score.
  • The total amount of credit exposure contributes another 25 percent.
  • Some other factors like credit utilization, recent credit behavior contribute the remaining 20 per cent to the score.
  • The available or used credit, this factor also helps in determining the credit worthiness of applicant.
  • The amount of debt that is being carried by you is also a great influential to your credit scores.

 

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Who Issues Credit Rating Or Credit Scores?

Credit Information Bureau India Limited (CIBIL) is leading credit information bureau of India. However, many lenders are using Experian and Equifax for checking the worthiness of the borrower through Credit Score. But now, it’s mandatory for the lenders to submit data to all the 3 bureaus.

Appliers for the loan or credit must know that it is direct indicator of your credit health. CIBIL score or Equifax score or Experian score helps the bureaus to determine number of loans and types of loan accounts, outstanding debt, and length of credit history.

If you are getting bad credit score, then you can be faced lots of issues like bad credit worthiness, problem in making payments, debit issues and many more. So, it’s having been already advised to the applicants to have proper repayment track record to have positive credit history. Therefore, to have good credit rating, it’s very essential to have all positive factors.

We hope that viewers have been satisfied with information given about issue of credit rating or credit scores. Stay connected with our web portal customer-carenumber.com to stay updated with latest facts like this.

 

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