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Finance

What is A credit score?

A credit score is a three-digit number (in India, 300–900) that sums up how reliably you repay borrowed money. Lenders use it to decide whether to give you a loan or credit card — and at what interest rate. A higher score means cheaper, easier credit.

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Key things to understand

  • 1A number that predicts how reliably you repay debt.
  • 2In India it ranges from 300 to 900 (750+ is good).
  • 3Built from your repayment history, debt, and credit age.
  • 4A higher score unlocks bigger loans at lower interest.

Frequently asked questions

What is a good credit score?
In India, a CIBIL score of 750 or above is considered good and earns the best loan and card offers.
How can I improve my credit score?
Pay every bill and EMI on time, keep credit-card balances low, and avoid applying for too much new credit at once.
Why is my credit score important?
It decides whether lenders approve you and what interest rate you pay — a low score can mean rejection or costly loans.

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