You may wonder what is credit history in relation to your credit score since your score is based on your credit history. Credit history refers to all the credit-related transactions you have undertaken in the past. It captures the loans and credit cards you have taken and your repayment behavior. With a good credit history, …
Post Type Archives: Glossary
Credit Line Vs Credit Limit
A credit line, also known as a line of credit, establishes a predetermined borrowing limit that you can access from a financial institution. You can borrow and repay the money up to the credit line at any point in time. You can secure the line of credit by staking collateral or leaving it unsecured. Unsecured …
Credit Scoring
Credit scoring refers to a lender’s analysis or assessment model to decide a person or enterprise’s creditworthiness. It is used to determine whether or not to lend money to an applicant. Traditional credit scoring models rely on credit scores, such as the CIBIL score or Equifax credit score. Alternative credit scoring models consider other aspects, …