A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based on credit report information. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits. Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, employers, and government departments employ the same techniques.
These credit score try to extrapolate the past credit handling behavior of a person. How about the future? Is it a good measure for the loaning institution? How about the borrower? Is managing credit scores like FICO should be his only goal? How can he decide how much debt to take and when to take? This is an important issue. If the risks are not assessed accurately, the results can be devastating for both borrower and lender. The miserable plight of many of today