Credit score maker Fico eyes bigger share in India's consumption story (2024)

FAQs

What are the biggest contributors to credit score? ›

While the FICO score is also available in India apart from other markets, it is not big here since it is built on credit card payment data and India does not have significant credit card penetration. India had 95 million credit cards at the end of October, as per data from the Reserve Bank of India.

Payment history (35%)

This is the most important factor in a FICO Score.

FICO Platform stands as a pragmatic solution, offering real-time authorization capabilities that ensure seamless transactions and provide valuable insights for informed decision-making.

The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.

Although a lot of people might like the idea of a perfect credit score, they'd likely have a hard time actually achieving it. In the U.S., only about 1.7 percent of the scorable population had a perfect 850 FICO credit score in April 2023, according to FICO data.

CIBIL score is calculated and generated by the Credit Information Companies (CICs) or credit bureaus, based on the consumer credit information provided by the member lending institutions on a monthly basis.

TransUnion CIBIL

It is the oldest and most popular in India today. Also, it offers market insights and portfolio reviews for businesses apart from CIBIL scores and reports for individuals.

For better or for worse, your home country's credit score won't follow you to the US. Until you start building credit, you're classified as "credit invisible." However, you may be able to use your credit history abroad to apply for credit cards and get your foot in the door in building your American score.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

What are the 5 Cs of credit? ›

Each lender has its own method for analyzing a borrower's creditworthiness. Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.

The most important factor of your FICO^® Score^☉ , used by 90% of top lenders, is your payment history, or how you've managed your credit accounts. Close behind is the amounts owed—and more specifically how much of your available credit you're using—on your credit accounts. The three other factors carry less weight.

CIBIL India is part of TransUnion, an American multinational group. Hence credit scores are known in India as the CIBIL Transunion score. CIBIL Score is a 3-digit numeric summary of your credit history, rating and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating is.

Only FICO Scores are created by the Fair Isaac Corporation and are used by 90% of top lenders. Why? Because FICO Scores are the industry standard for making accurate and fair decisions about creditworthiness. They help millions of people get the credit they need for a home, a new car, or a special purchase.

You might wonder, “Do other countries have credit scores?” The short answer is yes. But if you're planning an international move, you might be surprised to learn that you can't take your credit score with you. Some countries—like Canada and the U.K.—have credit scoring systems that are similar to the U.S. model.

Payment History: 35%

Your payment history carries the most weight in factors that affect your credit score, because it reveals whether you have a history of repaying funds that are loaned to you.

Payment history is the most important factor of your credit score, making up 35% of FICO® Scores.

Payment history: The biggest factor in determining your credit score is payment history. Every time you pay a credit card bill, car payment, house payment, student loan payment, etc., it gets added to your history. It's important that all of your payments are paid before the due date listed on your statement.