ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Creditworthiness is commonly measured by an individual’s credit score. The higher the score, the more creditworthy that person is considered to be. Your creditworthiness can determine what kind of interest rate you’re offered on loans, or whether you’re approved for a loan at all.

Detailed explanation-2: -Character refers to the composition of a borrower’s financial history and financial health. Character incorporates a borrower’s payment history, credit score, credit history, and relationship with prior debtors.

Detailed explanation-3: -Character. This includes your education history, business background and personal credit history. Include any references or other information about your financial situation. It helps if you and your staff have a good reputation in your industry.

Detailed explanation-4: -At the time of calculating the rating, credit rating agencies take into consideration several factors like the financial statements, level and type of debt, lending and borrowing history, ability to repay the debt, and past debts of the entity before rating them.