A credit score is a three-digit number (usually 300–900 in India) that summarises how you have handled credit. Lenders use it — along with income and other checks — to decide whether to lend to you and at what rate.
Key takeaways
- Scores are produced by credit bureaus such as TransUnion CIBIL, Experian, Equifax and CRIF High Mark.
- A score of about 750 or above is generally considered good for most loans and cards.
- Payment history and credit utilisation have the biggest influence.
- You are entitled to a free full credit report from each bureau once a year.
What goes into your score
| Factor | Typical influence | What helps |
|---|---|---|
| Repayment history | Very high | Never miss or delay EMIs and card dues |
| Credit utilisation | High | Keep card balances below ~30% of limits |
| Length of credit history | Medium | Keep old accounts open |
| Credit mix | Medium | Healthy mix of secured and unsecured credit |
| New credit enquiries | Low–medium | Avoid many applications in a short time |
Score ranges (general guide)
| Range | What it usually means |
|---|---|
| 750–900 | Strong profile; best chance of approval and lower rates |
| 700–749 | Good; approval likely, rate may vary |
| 650–699 | Fair; limited options, higher rates |
| Below 650 | Weak; approvals difficult |
| NA / NH | No or too little credit history |
Each bureau uses its own model, so scores can differ.
Why it matters
- Approval — many lenders have minimum score cut-offs.
- Pricing — better scores often get lower interest rates.
- Limits — higher credit limits and pre-approved offers.
How to check your report
Visit the bureau's website, verify your identity with PAN and mobile, and download your report. Check personal details, every account, and every enquiry. Dispute anything that is wrong — see how to read a credit report and dispute errors.
How to improve your score
- Pay every due on time — set auto-debit for at least the minimum amount.
- Reduce card utilisation; ask for a limit increase if spending is steady.
- Avoid multiple loan or card applications in quick succession.
- Keep your oldest card active.
- Settle overdue accounts properly — a "settled" status is worse than "closed".
Your action checklist
- Download your free credit report from at least one bureau every year.
- Keep card utilisation below 30% and never miss a due date.
- Space out credit applications by several months.
- Raise disputes for any incorrect account or enquiry with supporting documents.
- Keep your oldest card open and active with small, regular spends.
FAQs
Does checking my own score lower it?
No, self-checks are soft enquiries.
How fast can my score improve?
Changes reflect after lenders report, usually monthly; meaningful improvement typically takes several months of clean history.
Can I get a loan with no credit history?
Yes, but options may be limited. A secured card against an FD is a common starting point — see building credit history from scratch.
