What is the best credit score to have?
In India, the best credit score to have is one that is 750 or above. The three credit rating agencies that operate in India – CIBIL™, Equifax, Experian and CRIF High Mark - issue a three digit credit score to individuals that is between 300 and 900. When you have a high score of 750 or above, banks are reassured that you have a good repayment history and are a low-risk customer. You often automatically qualify for loans with such a score. If your credit score is below 750, banks are unsure about your ability to fulfill your repayment obligations and are unwilling to lend to you.
What is an excellent credit score?
Any score above 800 is an excellent credit score. It ensures several advantages beyond just loan approval. Lenders are confident that you are a low credit risk and are willing to offer you very attractive loan terms in order to have you as their customer.
What are the advantages of credit score above 750?
A high credit score means that you will have faster access to credit and on much better terms.
1. Your loan/credit card application will be approved much more quickly. With a high score, the approval is completed in a matter of days, if not less.
2. The bank/credit card company will offer you lower rates of interest since they are confident that you will repay on time.
3. A good score might also result in a longer loan period.
4. A person with a high score might also be eligible for a much larger loan amount – again, since the banks are confident that it will be repaid on time and in full.
Whatever your credit score, it is possible to reach 750 in a matter of months. Credit management companies, like CreditMantri, can help you take steps to improve your score to 750 and above so that you become loan-eligible, and you can avail of all the advantages of a high credit score.