New Delhi, Aug. 11 -- Clearly understanding the concept of credit scores is important for financial well-being and economic prosperity. Lending institutions use these scores to analyse and assess personal loan and credit card eligibility.

Still, it has been seen that there are several misconceptions around the topic that make things difficult for not only bankers and professionals but even normal borrowers while they are going through the process of making borrowing decisions. Let us hence understand the basic concept of credit scores, associated myths, and secure better financial health.

A credit score is simply a three-digit number that reflects an individual's creditworthiness, repayment integrity. This score is decided based on seve...