Good Credit Score in India
In India, having a good credit score is important when you want to borrow money, like for loans or credit cards. Here’s what you need to know:
Credit Score Range:
- Generally Good: A credit score between 660 to 724 is seen as good. It shows you’ve been good at paying back money and can get you loans and credit cards with fair interest rates.
- Best Rates: If your score is 750 or higher, that’s great! Lenders offer you the best interest rates and terms.
Different Credit Bureaus:
- CIBIL Score: Most lenders in India use the CIBIL score. The ranges we talked about are mainly based on this score.
- Other Bureaus (like Equifax, Experian): There are other credit bureaus too, but their scores might be a bit different. Still, having a score around 660 or higher is usually seen as good by them too.
What Is a Good Credit Score?
A credit score is like a report card for your money habits. It’s a number that shows how well you handle borrowed money. If you pay bills on time and manage credit responsibly, your score goes up. But if you miss payments or have lots of debt, it goes down. Lenders use this score to decide if they should lend you money, like for a loan or credit card. A high score means you’re trustworthy with money, while a low score might make it harder to borrow or get good deals.
What Is a Good Credit Score?
Scores above 670 on the 300 to 850 scale are generally good. A credit score of 670+ is good in India, indicating you’re reliable with loans. The common score is CIBIL, ranging from 300-900; 750+ is considered good. Banks use these to decide on loans or credit cards. Good scores mean better terms and lower rates; low scores mean costlier or harder borrowing.