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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 helps lenders and financial institutions to decide the associated risk and the creditworthiness of individuals seeking a loan or credit.
Below are some benefits of having a good Credit score:
Please visit the website of a credit information company operating in India [eg: TransUnion CIBIL Limited or Experian] to apply for your credit score.
The term 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 ratings agencies such as Experian, Equifax, Highmark, and others, while the CIBIL score is specifically given by CIBIL (Credit Information Bureau (India) Limited).
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.
With a good credit score, you can choose from several lenders/financial institutions that offer lower interest rates for individuals with high credit scores. This is again due to the favourable factor of lower credit risk.
When applying for a loan or a credit card, you can be eligible for a higher limit or amount if your credit score is good. Hence, not only will this easily get your loan approved, but it will also let you access a more significant loan/credit amount.
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.
