What is a Credit Score and how does it work?

Credit scores are commonly used as a primary criteria in determining the ability of a borrower to repay the borrowed funds in a timely manner. Banks collect data on the basis of the PAN numbers of the individuals and make it available to a central credit rating agency such as CIBIL or Experian. The credit rating agency assigns Credit Scores on the basis of the consolidated Credit Information Report (CIR) collated from the data collected by it from the various banks and financial institutions.

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HDB Financial Services
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