Coca-Cola denies US consumer group’s claim that its colouring ingredient causes cancer; yet the company says it will modify its drinks in India like it has in California
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Credit ratings
We tell you what determines your credit rating, and how you can look it up and improve it
Rates of interest on bank loans, despite the exact figures quoted on banks’ websites, are variable. Bank of Baroda, for example, claims that it offers home loans at 11.75% and personal loans at 17.25%. In practice, however, the larger the risk you pose to the bank, the higher your interest rate will be. To arrive at what is known as the ‘probability of default’, banks need to know how much you earn and, just as importantly, your credit history. Your annual income has a greater impact on the size of the loan, but your credit history too plays a sizeable role in deciding the rate of interest.
Until a few years ago, a bank could do little more than speculate about your credit history, unless you had borrowed exclusively from it in the past. Now, however, a lending agency needs only to access your credit information report (CIR) to find out if you paid back your last loan on time, how often you use your credit card, and even how many times you’ve approached a bank for a loan. Even a short streak of financial indiscipline could now cost you gravely.
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