ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The words ‘CIBIL score’ are often used synonymously with ‘credit score’ and refer to a three-digit score between 300 and 900.

Detailed explanation-2: -A credit score is a number from 300 to 850 that rates a consumer’s creditworthiness. The higher the score, the better a borrower looks to potential lenders. A credit score is based on credit history: number of open accounts, total levels of debt, repayment history, and other factors.

Detailed explanation-3: -Your creditworthiness is also measured by your credit score, which is a three-digit number based on factors in your credit report. A high credit score means your creditworthiness is high and a lower credit score indicates lower creditworthiness.

Detailed explanation-4: -A credit report is a detailed statement of your credit history-how you’ve handled your credit accounts and repaid your debts. Credit reports include key financial information used by lenders, credit card issuers, and insurance companies to determine your creditworthiness.

Detailed explanation-5: -Individual credit scores are calculated by credit bureaus such as Experian, Equifax, and TransUnion on a three-digit numerical scale using a form of Fair Isaac Corporation (FICO) credit scoring.