New Delhi, Aug. 13 -- In summary

If you are planning to borrow, understanding what is credit score and why it matters can help you prepare before applying for a loan.

A credit score is a numerical representation of information in your credit file. It is calculated using details such as your repayment history, credit accounts and credit enquiries, based on the scoring methodology used by the relevant credit bureau.

When you apply for a loan, a lender may review your credit information as part of its assessment. Your score can provide an indication of how you have managed credit in the past.

However, your credit score is only one part of a loan assessment. Lenders can also consider your income, existing financial obligations, repayment ...