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What is a Good Credit Score?

What is a Good Credit Score in India?

While different credit bureaus might use different scoring models, in general, it is accepted that a credit score above 700-750 is generally considered good.

Common credit score ranges are as follows:

Credit Score


How did you get this score?


“Not Applicable” or “No History”

You likely do not use a credit card, and/or have never taken a loan. Thus, you will not have a credit history.



You might have a history of irregular repayments or defaults on credit card bills or EMIs. Or, you might have applied for a lot of credit in the past and have displayed poor credit utilisation, You will be considered at a high risk of defaulting on your loans, Lenders might not approve your loans or credit applications.



You may have shown some irregularities with your past payments, such as late payment of credit card bills/EMIs or multiple credit inquiries, You might still be considered a risk for lenders, Many lenders may not approve your loans, and those who do will likely have higher interest rates.



You have displayed good repayment behaviour in the past, You will be considered at a lower risk of defaulting, Most lenders will consider your credit and loan. applications, but you might not get the best deals on the rate of interest.


Very Good

You have been regular with credit payments, and longer credit history, and have displayed responsible repayment behaviour, You might be considered a low risk for lenders, Lenders will not be wary of extending credit, and you will get good deals on your loans.



You have displayed excellent financial management, been regular with your credit payments, and have an exemplary credit history, Banks and lending institutions will consider you a low risk of turning into a defaulter, and will offer you better deals on loans and credit cards

Why is having a Good Credit Score Important?

What affects your Credit Score?

There are a number of factors that are used by an algorithm to calculate a person’s credit score. Each of these factors has a different weightage on the score, though this changes based on the company calculating the score.

These factors include:


What affects these factors?

Payment History

This refers to the timely payments of credit card bills, loans, and EMIs, Having delayed, missed, or defaulted payments will lower your credit score.

Credit Utilization

This refers to the amount of your credit limit that you use, Ideal spending is no more than 30% of your credit limit. If it is higher than this, it will bring your score down.

Credit Duration

This refers to the length of your credit history, or how long you have had a credit account, Older accounts and credit cards can show potential lenders that you have consistently been paying your bills on time

Credit Mix

This refers to the types of credit you have, There are two main types of credit: unsecured loans (like credit cards and personal loans) and secured loans (such as auto loans or home loans). It is recommended to have a mix of both.

Credit Enquiries

This refers to the number of times you have applied for credit, such as credit cards, loans, etc, A higher number of enquiries, especially during a short period of time, can lower your score.

How can you Improve your Credit Score?

What information will not affect your Credit Score?

Frequently Asked Questions