A credit score is a number that shows how likely you are to repay loans. In India, scores usually range from 300 to 900, the higher, the better.
2. Why does your credit score matter?
A good credit score makes it easier to get loans, credit cards, and even better interest rates. Lenders use it to decide if you are trustworthy with credit.
Your score depends on payment history, how much credit you use, length of credit history, types of credit, and recent credit activity. Paying late or maxing out cards can lower your score.
3. What factors affect your credit score?
4. How to check your credit score
You can check your credit score for free on credit bureaus like CIBIL, Experian, or CRIF. Always review your report for errors or suspicious activity.
5. Simple ways to improve your credit score
Pay all bills on time, be mindful about the credit utilisation, and avoid applying for too much credit at once.
6. Mistakes that hurt your credit score
Missing payments, using most of your credit limit, or closing old accounts can reduce your score. Always pay on time and never miss a due date.
7. Getting help from an advisor
If used efficiently, credit cards unlock a lot of benefits. Speak to an advisor who can help you with choosing the right credit card based on your needs.