| ID | 045317 |
| Title Proper | Why Knowing Your Credit Score Is No Longer a Choice? |
| Language | ENG |
| Author | Ranjan Ranjit Kumar, Dixit Sandeep Kumar & Srivastava Kshitiz |
| Summary / Abstract (Note) | A credit score is often seen as a three-digit measure of trust. Behind it lies a sophisticated system of data collection and predictive analysis. India's four Credit Information Companies: CIBIL, Experian, Equifax, and CRIF High Mark, compile borrower data and generate scores from 300 to 900. This score now shapes customers' financial access and costs, while helping lenders assess risk in a fast-moving credit market.
Its rising importance is also driven by regulation. The Reserve Bank of India has issued several guidelines to improve accuracy and fairness in credit reporting. With the RBI Master Direction - Credit Information Reporting, 2025, the framework has become more comprehensive, borrower-focused, and technologically aligned with modern financial needs.
A credit score is a numerical representation of a person's credit behaviour. It is not a reflection of wealth, income, educational qualifications, or social status. Instead, it reflects how responsibly an individual has handled borrowed money in the past, based on verified data submitted by banks, NBFCs, cooperative banks, microfinance institutions, and other regulated credit institutions. |
| `In' analytical Note | In The Indian Banker 2026-07-01 [Vol. XIII Issue. 11]. 2026-07-01. |
| Journal Source | The Indian Banker 2026-07 XIII, 11 |