Check your Credit Score

A Credit score is a 3-digit score highlighting your credit history and rating. Anything between 750 and 900 is considered a good Credit score and helps lenders and financial institutions to decide the associated risk and the creditworthiness of individuals seeking a loan or credit.

The terms 'Credit Score' and 'CIBIL score' are slightly different. The former is a general term that refers to the credit assessment score given by various credit rating agencies such as Experian, Equifax, Highmark, and others. CIBIL score is specifically provided by CIBIL [Credit Information Bureau (India) Limited].

Faster credit approval:

Financial institutions/lenders check your credit score to examine your creditworthiness. A higher Credit Score is associated with a lower risk, accelerating the loan credit/loan approval process.

Lower interest rates:

Lenders often offer lower interest rates for individuals with high Credit Scores.

Higher credit limit:

If your Credit Score is good, you might be eligible for a higher Credit Card limit or loan amount.

Hassle-free rent applications

When you rent a home, your tenant or a property agency may check your Credit Score to understand your financial track record. This may directly impact your chances of successfully renting a home.

There is no minimum credit score for a loan. However, if you want to ensure that your loan application process is hassle-free, a Credit Score of 750 and above is generally considered good.

In India, a Credit Score of more than 750 is considered reasonable if you want to apply for a Home Loan. However, some lenders may consider a slightly lower credit score, provided you have a good repayment history.