What is a good credit score? In India, a CIBIL credit score of 750 or above is generally considered good and gives you the best chance of loan and credit-card approval at favourable interest rates. Scores run from 300 to 900, and most lenders treat anything from 750 upward as low-risk.
Your credit score is a three-digit summary of how reliably you repay borrowed money. Lenders use it to decide whether to approve a loan or card and what interest rate to offer, so it pays to know where you stand.
Credit score ranges
| Credit score | Rating | What it means |
|---|---|---|
| 750–900 | Excellent | Best approval odds and lowest interest rates. |
| 700–749 | Good | Approved easily by most lenders on good terms. |
| 650–699 | Fair | Approved by many lenders, but at higher rates. |
| 550–649 | Poor | Approval is difficult; expect high rates or rejection. |
| 300–549 | Very poor | Most lenders will decline; focus on rebuilding. |
What affects your credit score
- Payment history — paying EMIs and card bills on time is the single biggest factor
- Credit utilisation — using a large share of your card limit hurts your score
- Length of credit history — older, well-managed accounts help
- Credit mix — a healthy blend of secured and unsecured loans
- Hard enquiries — many loan or card applications in a short time lower it
How to improve it
- Pay every bill and EMI on or before the due date
- Keep credit-card utilisation below 30% of your limit
- Avoid applying for several loans or cards at once
- Check your report yearly and dispute any errors
- Keep old, well-managed cards open to lengthen your history
Work out your own numbers — the Credit Utilization Calculator does it instantly, for free, with the formula and a worked example built in.
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