We have all heard about Credit scores and CIBIL scores when it comes to applying for a loan, but what is a credit score? A credit score is the number between 300 and 850 awarded as per your credit history. This three digit number helps the banks to understand your financial health via credit transactions carried out in the past. Now what is a good credit score? The credit scores are differentiated into 3 bands. We will go through each one of them to determine how much credit score is good.
750 or above
A good credit score in India is usually above 750. A score above this number is usually a good sign and home loan lenders usually process the loans quickly. This score indicates that you have a good credit history and that you have the ability to repay timely.
600 - 749
A credit score that lies between 600 and 749 is an average score which makes the lender scrutinize your application closely to disburse loan amounts. Banks usually consider your monthly income, other active loans, stability of income, etc.
300 – 599
Any number in this range is a bad news honestly. The three digits that fall in this bracket and poor credit scores that indicate your improper credit management and usually brings difficulty in getting loan approvals. Check out how much CIBIL Score is required for home loanHow to improve credit score?A few ways to improve your credit score are:
Pay off old debts and loans
Don’t utilize your credit limit completely
Analyze your finances and commit to a repayment plan to which you can stick
Don’t apply for multiple loans at once with multiple lenders.
This is all you need to know what is a good credit score, and how to improve your credit score.
A credit score that lies between 600 and 749 is an average score which makes the lender scrutinize your application closely to disburse loan amounts. Banks usually consider your monthly income, other active loans, stability of income, etc.
While I was buying my property in Bangalore, my bank manager informed me that if I had a strong credit score, then only I could get a loan of up to several crores. That’s why you must see that every lender determines if you will be able to repay the loan you have taken out when you apply for it. Let’s see what is a good credit score in India.
What is a Good Credit Score to Buy a House?
You should be aware of a good credit score before approaching a lender for the funds required to purchase your home. Your creditworthiness is represented numerically by your 3 digit credit score. As per my experience, a good credit score usually falls between 750 and 900. Credit bureaus calculate this score by looking at things like your payment history, credit utilisation, duration of credit history, categories of credit utilised, and so on.You can go through the below points to know the bad and ideal credit score in India:
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What is a good credit score?
Natasha
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May 6, 2021
2021-05-06T23:42:46+00:00 2023-10-25T09:46:34+00:00Comment
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