• Abhinav

    The exact algorithm used by credit bureaus is not clearly known outside the core team of the bureau – for the simple reason that knowledge of this would allow consumers to game the whole score.

    As far as the specific parameters that impact the score, here's what I think goes in

    1. Loan and card repayment history – this must be the single largest contributor of identifying responsible credit behaviour, If you have paid your EMIs in full and in time, chances are you would continue to do so in future also.
    2. Past disputes and settlements – have you taken a loan or card and got into a dispute over payment? Was it settled or written off by the bank/NBFC?
    3. Credit hunger – are you running multiple concurrent loans? Are you really credit hungry right now? How much of your credit card limit is utilized every month
    4. Bill Payment history – this may not be incorporated in Indian scores today, but am sure work is underway to understand how utility bill payments are being done by the specific consumer
    5. Many more….

    My guess also is that these parameters will keep on changing over time as the bureau tests the relevant inputs and their weightages across the actual performance of loan and card portfolios.