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What is Credit Rating and How is it Calculated?

Your credit rating, or your credit score, is like a report card – only the subjects are your finances and your dog cannot just eat it up. It also tends to stick with you for a long time. It is basically the ‘credit worthiness’ of a person, a business, or a country. It is an assessment of whether an entity would be able to pay back a loan or not. Nowadays, some employers may also use it to consider an applicant’s eligibility for a job. Leasing deposits and adjustment of insurance premiums are also affected by it.

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