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FREE CREDIT SCORE
BEST INTEREST RATES
FREE CREDIT SCORE
BEST INTEREST RATES
What is a Credit Score?
A Credit Score is a numerical representation of an individual’s creditworthiness, typically displayed as a three-digit number. This score is crucial when assessing your ability to borrow money or apply for credit. In India, credit scores generally range from 300 to 900, with a score closer to 750+ being ideal for securing loans or credit cards. To maintain a healthy financial profile, it’s recommended to check your credit score once or .
Credit Score Ranges and Their Meaning:
| RANGE | MEANING |
|---|---|
| 350-549 | A Credit score of “NA” or “NH” indicates that you either haven't used a credit card or taken out any loans, meaning there is no credit history available for evaluation. |
| 350-549 | A score in this range is considered poor. It suggests that you have missed payments on credit cards or loan EMIs in the past. With this score, it is likely that lenders will hesitate to offer you a loan or credit card due to the high risk of default. |
| 550-649 | A Credit score in this range is categorized as fair. It indicates that you’ve had some difficulty in managing payments on time, which may lead to higher interest rates on loans. |
| 650-749 | A Credit score in this range is categorized as fair. It indicates that you’ve had some difficulty in managing payments on time, which may lead to higher interest rates on loans. |
| 750-900 | A Credit score in this range is considered excellent, demonstrating that you consistently make timely payments and have a strong credit history. Lenders are more likely to offer you favorable terms for loans and credit cards since you pose a low risk of defaulting. |
| Ranges | Meaning |
|---|---|
| NA/NH | A Credit score of “NA” or “NH” indicates that you either haven't used a credit card or taken out any loans, meaning there is no credit history available for evaluation. |
| 350-549 | A score in this range is considered poor. It suggests that you have missed payments on credit cards or loan EMIs in the past. With this score, it is likely that lenders will hesitate to offer you a loan or credit card due to the high risk of default. |
| 550-649 | A Credit score in this range is categorized as fair. It indicates that you’ve had some difficulty in managing payments on time, which may lead to higher interest rates on loans. |
| 650-749 | If your Credit score falls between 650 and 749, it reflects a healthy credit behavior. Maintaining this level can help you continue to improve your score. While you are eligible for loans, you may not be able to negotiate the best interest rates yet. |
| 750-900 | A Credit score in this range is considered excellent, demonstrating that you consistently make timely payments and have a strong credit history. Lenders are more likely to offer you favorable terms for loans and credit cards since you pose a low risk of defaulting. |
How to Check Your Credit Score:
Steps to easily access your credit score online:
Benefits of Maintaining a Good Credit Score:
Why You Should Work on Improving Your Credit Score:
Common Reasons for a Low Credit Score:
Your credit score can be negatively affected by several factors. It’s important to understand these to improve your financial standing:
How to Download Your Credit Report:
To download your credit report, follow these steps:
Credit Information Companies in India:
In India, four primary credit bureaus provide credit scores and reports:
You will need your full name, email address, PAN card number, and mobile number.
Your credit score is essential for lenders to assess your ability to repay loans. Checking your score regularly helps you manage your financial health and understand any areas for improvement.
Yes, your PAN card serves as a unique identifier that helps verify your identity and enables the credit check.
A CIBIL score is specifically provided by TransUnion CIBIL, while the term credit score can refer to scores provided by other bureaus like Experian or Equifax.
Credit scores are calculated using various factors including your repayment history, credit utilization, types of credit used, and recent inquiries. A healthy combination of these elements results in a higher score, which boosts your chances of obtaining financial products.
A soft inquiry occurs when your credit is checked, but it doesn’t impact your score. For example, when you check your own credit score or when a lender pre-approves you for a loan.
Yes, a hard inquiry occurs when a lender checks your credit for a loan or credit card application, which can result in a temporary decrease in your score.
Owning several credit cards doesn’t automatically lower your score. What matters is how you manage them. If you use your cards responsibly, it can have a positive impact on your credit score.
