What is Credit Scoring and What is a Good Credit Score?

Credit scoring is a method used by lenders to evaluate a person’s creditworthiness—that is, how likely they are to repay borrowed money. This evaluation is usually expressed as a three-digit number, commonly known as a credit score. It is based on an individual’s credit history and financial behavior. Credit Score vs. Credit Rating There’s often…

Historical Evolution of Credit Scoring System

Origins of Credit Rating The concept of credit rating originated in the United States in 1909 when Moody’s began evaluating corporate and railroad bonds. This initiative marked the inception of systematic credit assessment, which has since been adopted globally.​ Development of Credit Rating in India In India, the credit rating industry commenced with the establishment…