The benefits of good credit ratings is often among the first things that come to when discussing this subject. Most people are willing to understand how credit scores work and make an active effort in positively influencing them only if they are aware of their gains. In this context, the…

Dwelling in-depth about discussions on credit, debit, lending, and credit scores brings to the surface the usage of various terms related to the finance industry. Equity, creditworthiness, loan-to-value ratio, debt-to-income ratio, and credit utilization ratio are some of the industry’s most commonly used terms, by lenders and borrowers alike. In…

Both credit and debit make an essential impact on credit scores, but being starkly different, they affect creditworthiness in diverse ways. In traditional finance, banks and other institutions issue credit cards, and as the primary lending body…

Numerous details and credit-habits go into the making of credit scores, which are also the factors responsible for helping the lender determine creditworthiness. In other words, these factors are essentially markers of the risk of default associated with user accounts. For borrowers therefore, it becomes crucial that they are aware…

The rise of Decentralized Finance (DeFi) has introduced an unprecedented scope for blockchain implementation. Today, the technology not only augments traditional finance but also overcomes several of its shortcomings and persistent bottlenecks. In turn, the emerging blockchain-cryptocurrency community has propelled the growth of myriad financial solutions, bringing under their fold…

Credit reports occupy such a massive space in our daily lives. They serve as a preliminary but authentic gateway to trust that is necessary before any financial transaction, standing as a sentinel against risky and fraudulent financial ventures. As such, credit reports reveal financial backgrounds, history of loans, debts, repayments…

Alongside the growing popularity of crypto-assets, lending and borrowing have emerged as a leading use case in this domain. Consequently, there’s an increasing need for a unified credit rating which can be leveraged for several purposes, including risk assessment and mitigation. Traditionally, credit ratings are available for a range of…

From top-tier financial institutions to SMEs, all are dependent on what is now known as the credit score. The traditional decision-making role of the lending officer from back in the day transformed into FICO score, which took into its consideration various factors and behaviors associated with credit risk and approached…

One of the most devastating market plunges — the 2008 crash — was triggered by a massive $12.68 trillion debt recurring from defaulting subprime mortgages. The New York Federal Reserve Bank reported in May 2020, that the mortgage debt stood at $14.30 trillion. This demonstrated that the lending industry has…