My credit score is 750, what does it indicate to lenders? Can you also explain the different credit score ranges and what they represent?
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The CIBIL score ranges from 300-900, with 300 being poor and 900 being the best score for credit-worthiness.
Credit Score Range-
- Excellent score - Above 750+, this means you have paid your credit card bills before due date, repaid loans on time, have not used credit limit.
- Good score- Between 600,750, you may have missed/delayed payments or have a slightly misplaced loan portfolio, it is still good.
- Fair score- If your score is between 500-600, while your credit score may mean that it will be very difficult to get a loan, you can work on improving your score.
- Poor score- Below 500, there is very low chance that your credit score application will get accepted or your loan will get approved. Work on improving your credit score.
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Your score is generally considered good, it indicates lenders that you manage your finances efficiently, use credit cards carefully and it puts you in top bracket of creditworthiness. You would get loan in more favorable terms with higher credit limits and at lower rate of interest.
But I’m curious — what exactly counts as a ‘good’ credit score in India, and how big of a difference does it actually make when applying for loans or new credit cards?