A credit score in India is a three-digit number that reflects how responsibly a person has managed credit in the past. It is mainly calculated by credit bureaus such as CIBIL, Experian, Equifax, and CRIF High Mark. The score usually ranges from 300 to 900.
Banks and financial institutions use this score to assess loan and credit card applications. A higher score generally indicates lower risk, while a lower score suggests a history of delayed payments or excessive borrowing.
Credit score is influenced by factors like repayment history, credit utilization, length of credit history, and number of credit enquiries. Paying EMIs and credit card bills on time plays a major role in maintaining a healthy score.
A good credit score can help individuals access loans at better interest rates and with simpler approval processes. On the other hand, a poor score may result in higher interest rates or even rejection.
This article is for educational purposes only and does not provide financial advice.