What is a Credit Score?

A credit score is a numerical Score that summarizes your credit history and credit risk for lenders. If you are applying for any kind of a loan, be it an education loan, credit card or even a home loan, the bank or lender will check your credit report and credit score to understand your risk profile (i.e. how likely you are to pay back the loan) and decide whether they want to issue the loan to you. In India, presently there are four credit bureaus that are tracking millions of customers and their credit use: