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A credit score of 740 is good. Borrowers with this score are eligible for lenders’ better interest rates and product offers. You will qualify for pre-approved offers and lowest interest rates. Most lenders will be willing to lend, and the credit score indicates good creditworthiness. It shows that you have a timely repayment record and good financial discipline. Late payments and other negative entries on your credit file are rare or non-existent and maybe just a thing of the past.

What Are The Advantages of A Good Credit Score like 740

  • Lower interest rates and better credit products: Banks may offer you loans and credit cards at a lower interest rate when you have a good credit score. You can also get a higher loan amount and a discount on the processing fee.
  • Access to the best rewarding credit cards: You will be able to get the most rewarding credit cards in the market including those that offer the lowest interest, travel points, cashback, and other perks.
  • Loan and Credit Card Approval Becomes Easier: When borrowers have a low credit score, it is difficult for them to get a loan or credit card approval. A higher score helps you get a loan or credit card approval easily.
  • Loan with A Long Term: If you have a high credit score, you can get a loan with a longer repayment period. This will result in smaller monthly EMIs. It will help you in reducing your EMI burden and will thus prevent defaulting on your EMIs.
  • You Can Get A Higher Loan Amount or Credit Card Limit: A credit score of 740 can help you get higher limits on your loans and credit cards. This is because a higher score usually shows a lower risk of default due to your risky credit behavior.
  • Increased Access to Pre-approved Loans: You will be eligible for pre approved loans and credit card offers. These offers can give you quicker access to credit as they usually involve minimal documentation and quicker approval.

How Is The Credit Score of 740 Computed?

The credit score is computed based on a number of factors, especially on your payment history. Your repayment record factors in for over 35% of your credit score. Additionally, these are the factors that contribute to the computation of the credit score.

  • The total available credit balance
  • Existing loans and credit cards you have
  • Credit utilization ratio
  • Balance between your secured and unsecured loans
  • Multiple other factors

The credit bureaus calculate your credit score based on a credit scoring algorithm. The credit score not only helps lenders assess your loan eligibility but also helps them understand your creditworthiness. Always verify your credit score before you apply for a loan. If it is not up to the mark, take steps to improve it and then apply for the loan if you can wait. Because, the higher your score, the higher your chances of loan approval.

How To Improve Your Credit Score?

By careful analysis and having financial discipline, you can easily maintain a good credit score. It will not only reflect your high creditworthiness but also help in applying for new loans. These are some of the ways in which you can improve your credit score.

  • Make timely payment of dues – Try and pay your bills before or on the due date whether it be utility bills or any other outstanding bills. You can avoid missing due dates by setting reminders for payment due dates, setting auto debit facility, and avoiding paying only the minimum amount due.
  • Credit utilization – Ensure not to use your credit limit to the fullest. When you use your credit report to the fullest, lenders will feel that you are credit hungry or too dependent on credit. Lenders may not be comfortable approving loans if you are already using your current facility to the maximum. Experts recommend a CUR of within 30%.
  • Keep accounts with good credit history on your report – Keeping accounts with a good credit history, i.e., those with timely payment of dues, full payment of dues, no extra credit taken, etc. reflects well on your report.
  • Check your credit report for errors - Sometimes, there might be errors on your credit report and this might lead to a bad score. Ensure to follow up with one of the credit bureaus and rectify these errors. Getting the error corrected will improve your credit score automatically.
  • Limit the number of hard inquiries – Restrict the number of times you apply for a credit card or loan. Too many inquiries reflect negatively on your report as lenders will get the impression that your financial needs are very high. It could be interpreted as you might not be able to repay the loan in full.

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CreditMantri Finserv Private Limited

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U72100TN2012PTC085154

IRDAI Registration Number

CA0665

Valid Till

01-Aug-2025

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CreditMantri Finserve Private Limited Unit No. B2, No 769, Phase-1, Lower Ground Floor, Spencer Plaza, Anna Salai, Chennai - 600002

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