Find out if you are Credit Worthy
When applying for a credit card or a loan from a bank or an NBFC, having a higher credit score may entitle you to additional perks such as a larger loan amount, a reduced interest rate, and the ability to repay the loan over a longer period of time.
Credit Score Range
A credit score varies from 300 to 850. Always take steps to improve your credit score and get it closer to 860. With a higher credit score, you have a better chance of receiving a good deal on both loans and credit cards.
300 – 499
This score range suggests you are a defaulter
500 – 600
it will be difficult for you to get a loan or a credit card as you are at a high-risk of turning into a defaulter
601 – 660
It suggests you have been struggling to pay the dues on time
661 – 780
Lenders will consider your credit application, However, you may still not have the negotiation power to get the best deal on rate of interest
781 – 850
You have been regular with credit payments and have an impressive payment history
Factors That Impact Your Credit Score
- Pay your bills on time, every time. This doesn’t just include credit cards – late or missed payments on other accounts, such as cell phones, may be reported to the credit bureaus, which may impact your credit scores. If you’re having trouble paying a bill, contact the lender immediately. Don’t skip payments, even if you’re disputing a bill.
- Pay off your debts as quickly as you can.
- Keep your credit card balance well below the limit. A higher balance compared to your credit limit may impact your credit score.