"Banking or Credit Rating is used to calculate the creditworthiness of an individual, company, or country. This estimate is calculated by the lending institution because it takes into account the overall credit history of the lending parent. Credit Rating is also known as the ability of a potential borrower to repay a loan. Made by credit agencies at the request of the lender. Credit ratings are calculated based on economic history and current assets and liabilities. Generally, a credit rating is a percentage of a lender's or investor's ability to repay a loan. More recently, however, credit ratings have been used to adjust insurance premiums, determine employment eligibility, and determine the amount of benefit or lease deposit. A low credit rating indicates the likelihood of defaulting on a loan, thus causing the lender to incur higher interest rates or loan defaults. An individual's credit score, and his or her credit report, can affect his or her ability to borrow from financial institutions such as banks. Factors affecting a person's credit rating include, Ability to repay debt Interest, Amount of loan used, Storage methods, Methods of spending, debt There are different types of credit rating systems in different parts of the world."

S Sai Hrishikesh

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