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Credit Score

A credit score is a three-digit number that represents your creditworthiness—essentially, how likely you are to repay borrowed money on time. In India, credit scores typically range from 300 to 900, with higher scores indicating better financial reliability. Organizations like CIBIL, Experian, and Equifax generate these scores based on your past borrowing and repayment behaviour

Credit Score FAQs

Why Is Your Credit Score Important?

Banks and lenders check your credit score before approving loans. A high score makes it easier to get approved for personal, business, or car loans.

How is my credit score calculated?

Your credit score reflects your credit history, including payment history, credit utilization, and length of credit accounts.

What Affects Your Credit Score?

Repayment History: Timely payment of EMIs and credit card bills improve your score.- Credit Utilisation: Using a high percentage of your available credit limit may lower your score.
Number of Loans/Credit Cards: Too many loans or credit cards, especially when recently acquired, can affect the score.
Credit Mix: A healthy mix of secured (car/home loan) and unsecured (personal loan/credit card) credit boosts your score.

How can I check my credit score?

You can check your free credit score on CIBIL website www.cibil.com or through your banks.

Can I improve my credit score?

Yes, by making timely payments, reducing debt, and checking your credit report regularly.