New Delhi, Dec. 2 -- The nation's rapidly evolving credit-driven economy makes understanding credit scores and their fundamentals critical for long-term financial planning and economic prosperity. Lending institutions rely increasingly on this three-digit number.

It is a number that ranges from 300 to 900 to judge borrowers' reliability in making pending loan repayments. CRIF High Mark, Experian, Equifax, and CIBIL are some of the prominent credit bureaus that provide these scores. These bureaus utilise advanced scoring models to conduct thorough background checks on prospective borrowers. Still, certain basic components influence the scores of individual borrowers.

The repayment history of aspiring personal loan or credit card applican...