YOUR CREDIT SCORE

It determines your loan and credit card eligibility

What is a Credit Score?

A three-digit summary of your credit worthiness is known as a credit score. A Credit Score depicts your ability to manage debt. In order to avail certain financial products like a personal loan, home loan, business loan etc, credit score is the first thing any financial institution or bank looks at, before sanctioning a loan amount. It is very important to avail a good credit score in order to get the best rates with various financial products.

Credit Score range: Good or bad credit scores.

The three digits of credit score fall in the range between 300 and 900. If your credit score is closer to 900 then there is a high possibility that you will get the loan easily from any bank or non-banking financial company. The credit score closer to 300 or lower than 700 depicts that there is very little chance from the bank’s end to accept your request of credit card or any other kind of loan. Here is a list of the credit score range and how it matters.

  • score between 750 and 900: The credit score which falls under 750 to 900 range is often considered as the excellent credit score. Because of your excellent credit history and credit score, you can negotiate with your lenders for a better deal and lesser interest rates on loans.
  • score between 650 and 749: Credit score which comes under 650 to 749 to be considered as a good credit score. However, banks check all the transaction history of loan applications before approving his/her loan with this credit score. You can negotiate with the bank for better deals with this credit score but you can work on improving your credit score for higher limit & lesser interest rates on loans.
  • score between 550 and 649: Credit score which falls under the range of 550 to 649 is considered as average which means you are still building up your credit history or suffering from bad transaction records in the repayment of bank’s loan. It is very hard to get a loan or credit card with this credit score.
  • score between 300 and 549: Credit score which falls under the range of 300 to 549 considered as bad credit score which depicts that you are a defaulter or had a bad re-payment history against your past loans. It is almost impossible to get a loan or credit card with this credit score.

If there are no credit score records in an individual account then it means that he doesn’t have any credit history or past loan or credit card records which depict that you are a new customer to banks or NBFSs and it is very low possibility of getting unsecured loan from banks without a credit score or CIBIL score record.

How credit score is calculated?

The three digits of credit score fall in the range between 300 and 900. If your credit score is closer to 900 then there is a high possibility that you will get the loan easily from any bank or non-banking financial company. The credit score closer to 300 or lower than 700 depicts that there is very little chance from the bank’s end to accept your request of credit card or any other kind of loan. Here is a list of the credit score range and how it matters.

  • score between 750 and 900: The credit score which falls under 750 to 900 range is often considered as the excellent credit score. Because of your excellent credit history and credit score, you can negotiate with your lenders for a better deal and lesser interest rates on loans.
  • score between 650 and 749: Credit score which comes under 650 to 749 to be considered as a good credit score. However, banks check all the transaction history of loan applications before approving his/her loan with this credit score. You can negotiate with the bank for better deals with this credit score but you can work on improving your credit score for higher limit & lesser interest rates on loans.
  • score between 550 and 649: Credit score which falls under the range of 550 to 649 is considered as average which means you are still building up your credit history or suffering from bad transaction records in the repayment of bank’s loan. It is very hard to get a loan or credit card with this credit score.
  • score between 300 and 549: Credit score which falls under the range of 300 to 549 considered as bad credit score which depicts that you are a defaulter or had a bad re-payment history against your past loans. It is almost impossible to get a loan or credit card with this credit score.

If there are no credit score records in an individual account then it means that he doesn’t have any credit history or past loan or credit card records which depict that you are a new customer to banks or NBFSs and it is very low possibility of getting unsecured loan from banks without a credit score.