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Everything you need to know about credit scores in India
A credit score is a 3-digit number (300-900) that represents your creditworthiness. It's calculated by credit bureaus based on your credit history and helps lenders assess the risk of lending to you.
300-549
Very Poor
High risk
550-649
Poor
Credit issues
650-699
Fair
Average risk
700-749
Good
Low risk
750-900
Excellent
Very low risk
On-time vs late/missed payments. Even one 30-day late payment can drop score by 100 points.
Percentage of available credit you're using. Keep under 30% for best score (below 10% is ideal).
Age of oldest account and average age of all accounts. Older is better - don't close old cards!
Variety of credit types - credit cards, personal loans, home loans, car loans, etc.
Recent credit applications. Multiple hard inquiries in short time hurt score. Space out applications.
📊 CIBIL (TransUnion)
Most widely used by lenders
📊 Experian
International credit bureau
📊 Equifax
Global credit reporting agency
📊 CRIF High Mark
Growing presence in India
Several apps offer free credit score checks:
❌ Myth: Checking your own score hurts it
Truth: Checking your own score is a "soft inquiry" and doesn't affect it. Only lender checks ("hard inquiries") impact score.
❌ Myth: Closing credit cards improves score
Truth: Closing cards reduces available credit (increases utilization) and shortens credit history - both hurt your score!
❌ Myth: Income affects credit score
Truth: Your salary is not part of credit score calculation. It's only about how you manage credit, not how much you earn.
❌ Myth: Paying off debt removes it from report
Truth: Paid-off accounts stay on report for several years (good payment history stays, which is beneficial).