In the last 7 to 8 years, the fintech industry has experienced tremendous growth everywhere. Countless numbers of fintech startups have begun their journey in the last few years and have already added their names to the list of top fintech companies.

Now in the fintech industry, there is something called credit points, and everyone depends on it, which includes consumers, businesses, and consumers. In this article, we will learn how credit points play a vital role in the fintech industry. So without further ado, let’s get into business.

What is a Credit Score?

In simple terms, a credit score is a number that determines your creditworthiness. The number is between 300 and 850. The higher your number, the higher your credit eligibility. These points actually indicate your chances of repaying the loan to the lenders.

This helps any type of financial institution to understand whether you are honest enough to repay the loan. If your credit score is high, then the chances of getting a loan and credit increase, if you want to buy something. If the score is low then, the chances of getting a loan are reduced.

There are various credit bureaus that check your credit scores and make a report about it and send it to you. Reports are based on a number of factors. There are three top and most popular offices that count people’s credit scores.

There are major international credit bureaux that evaluate people’s credit scores and these are:




Fintech industry in India

The fintech industry in India has undergone a major transformation in a few years, changing the way we used to enjoy financial services in the past. For now, it would not be wrong to say that India is a fintech favorite place.

As of 2021, the market size is $ 31 billion and is said to be the third-largest in the world. Over the next five years, we will see 22% growth per year. The country has 1860 startups in the fintech industry, of which 17 already have a Unicorn status. Over the past two years, a large number of people have become accustomed to digital payment systems for any type of business, and it will increase.

The Role of Credit Score in Fintech

The first thing a financial institution will do after receiving your loan application is to check your credit history. If your credit score is good enough, we will give you a loan and besides, a lot of rewards and benefits. It is excellent support for fintech companies that borrow money from borrowers.

Video by Ankur Warikoo

How to Calculate a Credit Score?

The method of calculating credit scores varies from bureaus to bureaus. They have their own model that they use to get the result. There are five things to consider during the test and these are:

  • 35% of your Payment History
  • 10% Mixed credit
  • 10% of new credit
  • 30% of your Credit use
  • 15% of the length of the credit history

Why is Credit Score Important?

Debt points help you in two ways and are:

  • Your credit rating informs you where you are lacking, a complete report to give you an idea of ​​how you can improve in that area to increase your score. The report contains all the transactions you made.
  • With a good credit rating, you are eligible to receive attractive offers on loans and credit cards. A credit score of 750 and above is the best way to get a good offer.
  • How to Improve Credit School?
  • Pay your debt before the due date each month.
  • Ignore your overdue bills, pay them off as soon as possible.
  • Keep in mind the credit card you use and its type.
  • Don’t spend too much money on your credit card. Be aware of how you spend money and try to reduce unwanted spending.

Benefits of High Credit Score

Higher credit points have a number of advantages, some of which are listed below.

  • If your credit score is high, you are eligible before banks to get loans and credit cards at very low interest rates. There is also the possibility of a discount on the processing fee for a higher loan amount.
  • Those with high credit scores have a lower risk of not paying their debts. It means that the chances of your loan being approved are high.
  • You are eligible for a credit card that offers good prizes and other offers such as a refund.
  • Your credit limit increases, if you qualify, then lenders know that you will repay your loan on time, which increases their confidence and increases your credit limit.
  • Attractive Car Insurance and Housing Insurance Standards are provided to those with good credit scores. ‘
  • A small number of documents are required by lenders from you.
  • Guarantees are not required if you are borrowing money if you have good credit points.


Getting a mortgage or a mortgage can be difficult, but if you have a good credit rating, lenders will not hesitate to lend you money. Fintech takes out credit points and determines who will borrow the money and who will not. Credit scores confirm fintech, about your credit risk and the amount they are about to borrow.