Why is credit score important?

Your credit score is basically your reputation around how you handle money. If you have a good reputation, it can be a powerful tool to help you improve your lifestyle by allowing you to buy things you might otherwise have to save for years to buy or pay for say a bike, car, home, vacation, etc. Now a days, credit score is also required in connection with Employment Screenings, Home or apartment rentals, Mobile Postpaid limits, etc.

Who provides/calculates Credit Scores in India?

In India, the credit score of individuals is the provided by four Credit Information Companies (CICs) – Equifax™, CIBIL™, Experian™ and CRIF High Mark™. From lenders they collect the data of individuals who have taken any of credit compiling them in the form of a credit report based on which they calculate the credit score using their own proprietary algorithm.