New Delhi, Sept. 29 -- Credit scoring is important in modern financial systems, influencing loan approvals, interest rates and at marriage proposals. Scoring models analyse your financial history to assign a numerical value - typically between 300 and 900 - that lenders use to determine your creditworthiness.
Early this year, a family cancelled a wedding because of poor credit score of groom.
While this system aims for objectivity, it is a kind of a black box with certain biases that may harm a section of society. For example, families in rural areas do not have a credit history regardless of income, and therefore, they find it hard to procure loans. In May this year, Maharashtra CM Devendra Fadnavis asked banks not to insist on CIBIL s...
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