New Delhi, April 6 -- A credit score is a three-digit numeric value ranging from 300 to 900 that assesses a borrower's creditworthiness. It is calculated using algorithms that evaluate various aspects of an individual's credit behaviour, including (but not limited to) repayment history, credit utilisation ratio, number of credit accounts, age of credit lines, and frequency of credit inquiries.

A good credit score not only facilitates access to credit but also serves as a comprehensive indicator of an individual's financial behavior and reliability, effectively functioning as a financial resume.

A good credit score significantly influences several parameters of a home loan application, including the rate of interest, loan-to-value (LTV),...