Credit Score
A three-digit summary of your repayment history, usually on a 300-900 scale.
Payment history and credit utilisation drive most of the score. Above 750 typically unlocks the best card and loan pricing; each lender also applies its own internal scorecard on top.
Why Credit Score matters when comparing products
A strong credit score is crucial for Indian consumers comparing financial products because it signals repayment reliability to lenders. It directly influences eligibility and the interest rates offered on loans, such as home loans or personal loans, and credit cards. A higher score often translates to more favourable terms, potentially reducing the overall cost of borrowing and increasing access to a wider range of financial solutions tailored to individual needs.
Illustrative example
Consider two individuals seeking a ₹10 lakh personal loan. One has a credit score of 800, the other 650. The individual with 800 might be offered an interest rate of 10% per annum. The individual with 650 might be offered 15% per annum, or even be denied the loan, demonstrating the financial impact of a credit score.