Hello Scholars,
Can you please tell me how do I measure whether any country is using (mandatory) personal credit rating? Is there any database that can help to find out the mandatory personal credit rating score?
Regards
Dr. Aziz
The Personal Credit Rating System is a numerical representation of an individual’s creditworthiness. Lenders use it to evaluate the risk of lending money to a borrower. The most used credit score is the FICO score, which ranges from 300 to 850 (see FICO; Experian & NerdWallet). The higher the score, the more creditworthy the borrower is (see investopia.com). Several factors go into calculating a credit score, including:
1. payment history,
2. credit utilization,
3. length of credit history,
4. types of credit used, and
5. new credit accounts (see NerdWallet).
Individuals can check their credit score and credit report for free at the three credit bureaus (see Equifax, Experian, and TransUnion). Maintaining a good credit score is essential, as it can affect your ability to get approved for loans, credit cards, and other financial products. Suppose you’re looking to improve your credit score (see NerdWallet); in that case, there are several steps you can take to improve your credit score, such as
1. paying your bills on time,
2. keeping your credit utilization low, and
3. Avoid opening too many new credit accounts.
I hope this helps you with your inquiry.
Emmanuel Ntui Thank you so much for your reply. Can you please tell how can I find the list of countries that are mandatorily using Personal Credit Rating (nation-wide)?
Apart from the United States, other countries that use credit scores include (visit Wikipedia):
1. Canada,
2. Germany,
3. Australia,
4. China, and
5. the United Kingdom.