The Credit Score is a number that is mathematically calculated by using an algorithm based on the data provided by the lending institution of an individual. This Credit Score is issued in the form of a report, to the person to whom such information/score relates to, upon request.
The Credit Score is a 3 digit number ranging from 250 to 900. A higher Credit Score leads to lower Credit Risk to lenders and a lower Credit Score leads to higher Credit Risk. The Credit Score is calculated using an algorithm based on the following key elements:
- Payment behavior
- Over indebtedness
- Demographic details
- Utilization of available credit
- Guaranteed contracts
- Dishonoured cheques