Personal FinanceBeginner
Credit Score
A three-digit number summarising how reliably you have repaid borrowings.
Detailed explanation
In India, bureaus such as CIBIL score between 300 and 900 using repayment history, credit utilisation, credit age, mix and recent enquiries. Lenders use it to decide both approval and the interest rate offered.
Example
A score above 750 can secure a home loan at a materially lower rate than a score near 650, worth lakhs over 20 years.
Why it matters
It silently prices every future loan and card you take, and repairing it takes many months.
Key points
- Repayment history carries the most weight.
- Keep card utilisation below about 30%.
- Multiple loan enquiries in a short span lower the score.
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Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.