ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Your income and employment history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered. The ratio of your current and any new debt as compared to your before-tax income, known as debt-to-income ratio (DTI), may be evaluated.

Detailed explanation-2: -FICO ® Scores are the most widely used credit scores-90% of top lenders use FICO ® Scores. Every year, lenders access billions of FICO ® Scores to help them understand people’s credit risk and make better–informed lending decisions.

Detailed explanation-3: -Whenever you apply for a personal loan, lenders will make a hard inquiry into your credit history, which can drop your credit score by about five points. But don’t let that stop you from shopping for the best interest rate and loan terms.

Detailed explanation-4: -As you make on-time loan payments, an auto loan will improve your credit score. Your score will increase as it satisfies all of the factors the contribute to a credit score, adding to your payment history, amounts owed, length of credit history, new credit, and credit mix.