Credit Score

Credit

Credit score (300-900) is a numerical measure of creditworthiness from credit bureaus (CIBIL, Experian, Equifax, CRIF). CIBIL score is most used. 750+ is excellent and qualifies for best loan rates.

In detail

Key factors: payment history 35% (never miss EMIs), credit utilisation 30% (below 30% of limit), history length 15%, credit mix 10%, new inquiries 10%. Check free at: CIBIL.com annually, BankBazaar, Paisabazaar.

Real-life example

🇮🇳 India example

Meena (score 815) gets home loan at 8.5%. Friend who missed 3 EMIs (score 640) gets 9.25% or rejected. On Rs 50L for 20 years: 0.75% difference = Rs 5.2L extra interest.

Frequently asked questions

How long to improve bad score? ▼

6-12 months for meaningful improvement with consistent on-time payments. 2-3 years to go from poor (below 650) to good (700+).