A credit score is a number used by banks and other lending institutions to understand a person’s creditworthiness. It is a number between 300 to 900 and is computed by credit information bureaus. In India, there are 4 licensed credit bureaus that compute the credit scores - Experian, CRIF High Mark, Equifax, and TransUnion CIBILTM

The credit score shows how well individuals can manage their finances and reflects their ability to repay borrowed credit like loans. A credit score of 750 plus or one close to 900 ensures high chances of loan or credit approval. Let us now understand credit score ranges and what each range reflects. 

Credit Score Ranges and Meaning 

Credit Score Range  



601 to 649

Poor credit score and requires major improvements. 

The chances of approval are low. Lenders may ask for collateral or other supporting income documents to establish your loan repayment capacity 

650 to 699

Fair credit score.


You can easily get approval for loans and credit cards with such a score. But, there is still scope for improvement. Achieving a score higher than this range will get you better interest rates. 


700 to 749

Good credit score 

Will get you some of the best loans and credit cards in the market 

750 to 900

Best credit score range 

Lenders would offer you the best loans and credit cards. You can also avail premium benefits and offers from lenders. The challenging part is to maintain your credit score in this range consistently. 

How To Improve Your Credit Score? 

Achieving a good credit score is not an instant process. But, those who strive to improve their credit score consistently can see the results. Here are some ways to get there. 

  • Paying your bills on time:

It is important to pay your EMIs and credit card bills on time. Having a long history of timely payments will give you an excellent credit score. Timely payments is one of the most important factors considered when computing your credit score. To avoid missed payments, you can set up auto payment alerts (But you must ensure not to overdraft your account). If you are not able to pay any bill on time, then you can reach out to your credit card issuer and discuss the issue with him. You can request him to give you some more time. 

  • Have a healthy credit mix:

If you have not taken a loan and have also not used a credit card so far, then you will not have any credit history. So, you should borrow a proper mix of secured and unsecured loans to build your credit profile. This will help you get personal loans at lower interest rates and higher loan amounts. 

  • Monitor your credit report regularly:

The credit bureau may have sometimes recorded incorrect information, or may not have updated details in your credit report. These may be bringing down your credit score. In those cases, you must file a dispute with the respective credit bureau and resolve these discrepancies. This resolution will improve your credit score. 

  • Use 30% or less of your available credit:

Your credit utilization ratio is one of the most important factors constituting your credit score. Keeping it within 30% is important to getting top scores. A lower CUR implies a higher credit score.

  • Limit the number of hard inquiries:

There are two types of inquiries into your credit history - A soft inquiry and a hard inquiry. A soft inquiry is something which is done when you are checking your own credit, giving a potential employer authority to check your credit, checks done by financial institutions with which you are doing business, and credit card companies that check your file to see if they can give you pre-approved credit offers. This type of inquiry will not affect your credit score. On the other hand, hard inquiries will affect your credit score. Hard inquiries are done when you apply for credit and the creditor pulls out your credit file. Hard inquiries will show up on your credit report and it will affect your credit score. Having too many hard inquiries will drastically bring down your credit score. 

  • Keep Old Accounts Open and Deal with Delinquencies:

The age of your credit history or the length is an important factor in determining how lenders look at you for giving loans. The higher your average credit age, the more favourably you appear to lenders. So, don’t close old accounts that have a positive credit history with timely repayments. As for delinquent accounts with missed or delayed payments, repay the amount due. Then make sure that you repay these accounts on time. That will not erase the late payments but can show your payment history in a positive light going forward.


The credit score is an important factor which helps you get future credit easily. Even if you are able to get loans or credit cards with a low credit score, the interest rates will be high and the credit limit will be lower respectively. Thus, it is always essential to have a good credit score. You should also maintain your credit score once you have achieved a good score. 


1. Is it possible to have a credit score of 900 in India? 

Yes, it is possible to have a credit score of 900 in India. However, it demands huge financial discipline, time, and patience to obtain this score. Timely payment of EMIs and bills, a low CUR, lengthier credit history, and having multiple sources of credit with consistent repayment can help you get to the credit score of 900

2. What causes variations in your credit score across different credit bureaus?

Each credit bureau has a different scoring methodology. For example, some bureaus may give more weightage to historical credit behavior while others may give higher weightage to current credit behavior. Although the score may vary,  it  reflects your credit health in the correct way to the lender.