Credit score · 6 min read ·
What is a good credit score in India?
Scores run from 300 to 900. Here is what each range means to a lender, and the number most of them look for.
What counts as a good score?
Credit scores in India run from 300 to 900. The higher your score, the more likely a lender is to approve you, and the better the rate it may offer.
Most lenders treat 750 and above as a strong score. A score between 650 and 749 is considered good, and many lenders will still consider you, though sometimes at a higher rate.
- 300–549: Poor
- 550–649: Fair
- 650–749: Good
- 750–799: Very good
- 800–900: Excellent
What affects your score
Your score is calculated from the information in your credit report. Five things matter most.
- Payment history: whether you pay your EMIs and other dues on time. This has the biggest effect.
- Credit utilisation: how much of your available credit you use. Using less of it is better.
- Credit age: how long you have had credit. Older accounts help.
- Credit mix: a balance of secured loans (like a home loan) and unsecured loans (like a personal loan).
- Enquiries: many loan applications in a short time can lower your score.
Does checking my score lower it?
No. When you check your own score, it is recorded as a soft enquiry. Soft enquiries are not shown to lenders and do not affect your score, so you can check as often as you like.
A hard enquiry happens when a lender checks your report because you have applied for credit. A few of these are normal, but many in a short period can have a small, temporary effect.