The three major credit agencies-Experian, Equifax, and TransUnion-collect data and compile it in a borrower's credit report to produce FICO scores. On the other hand, FICO Score X Data India is based on non-traditional data such as a user's digital footprints, cell phone records, and social networks.Īlso Read: Know All About your CIBIL Score and Report How the FICO Score Works The FICO score is calculated using info from other reputable credit reporting agencies in India. This allows lenders to boost their favorability ratings and expand their portfolios without raising the risk of default. FICO's non-traditional credit rating approach could provide Indian lending institutions more leeway to issue a credit to a broader set of previously uncreditworthy customers owing to a lack of credit record, advancing the Modi government's financial inclusiveness initiative.įICO's twin rating solution, which combines FICO Score X Data and FICO score, is an improved risk evaluation methodology that considers several risk factors. FICO score and FICO Score X Data are credit scoring systems that enable Indian lending institutions to estimate risk more accurately.Īs per a survey by the World Bank, over half of India's working population is either underbanked or financially excluded. FICO in IndiaįICO, a well-known credit-scoring firm in the United States, has released 'FICO Score for India' and FICO Score X Data India, a dynamic data scoring, in collaboration with Lenddo. However, lenders normally consider FICO scores above 670 to be good, while scores within 670 and 740 are considered "Good" on the standard FICO scale. The lender or lending institution analysing a user's credit history determines what constitutes a good FICO score. What is a Good FICO Score?Ĭustomers with higher scores also have a better chance of getting approved and access to the lower interest rate. FICO score was released in India to give Indian lending institutions the most accurate consumer credit risk analysis feasible, predicated on creditworthiness from any of the country's main credit agencies.
FICO is among the most well-known credit-rating agencies in the United States. Larger credit ratings indicate that you are a more appealing borrower and have a lower credit risk. The FICO score decides whether you will be accepted for a loan, how much you may borrow, and how much interest you will pay.īetween 300 and 850 is the FICO score range. This value is used by banks, lending companies, and credit card firms to determine your ability to repay the borrowed amount. It not only assists lending institutions in determining the degree of risk you offer as a borrower, but it also allows banking institutions, insurance firms, and other businesses to make quick lending decisions.Īccording to Fortune Magazine, billionaire businessman Warren Buffett has a FICO score of merely 718 despite being one of the richest men in the world! What is a FICO Score?Ī FICO score is a number that measures a user's creditworthiness and was developed by the Fair Isaac Corporation. A FICO score is a three-digit figure that ranges from 300 to 850 and shows banks and other creditors whether you are inclined to pay your bills on time or not.
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