What is a Credit Score?
When you think of applying for a personal or home loan, the first thing that comes to your mind is to check your credit score. For beginners, a credit score is a measure of your creditworthiness. It is the first thing lenders check when they receive your loan application. Your credit score is an indication of your ability and intent to repay the borrowed amount.
Credit score is calculated by different credit bureaus in India after considering your credit payment history, credit mix, credit inquiries, and credit history. Credit score ranges from 300-900 and generally, a score of 750+ is considered ideal for loan approval.
Importance of a Good Credit Score
Your credit score forms a major part of your financial life. It follows you forever and plays a vital role while getting a loan or a credit card approval. Having a high credit score puts you in the front of the line to avail quicker loan approvals and attractive interest rates. Therefore, you should always take measures to improve your credit score and work on maintaining your score in the range of 750-900.
If you have not checked your credit score yet, don’t delay it further. Check your credit score for free on . If you have a high credit score, you may be eligible for a pre-approved personal loan!
Why Maintaining a Good Credit Score is Important?
Maintaining a credit score of 750-900 is recommended for the following reasons:
Makes You Eligible for All Kind of Loans
A high credit score, 750+, makes you eligible for any kind of loan – be it education, Travel, home, business, or vehicle loan. When a lender looks at your credit score, it helps them ascertain if you are good at handling credit.
A higher credit score indicates that you have been repaying your debt on time and are experienced in handling credit effectively. This is one of the strongest reasons for lenders to sanction you a loan because a high credit score means lower probability of you turning into a defaulter.
Attractive Rate of Interest
A higher credit score is considered healthy and less risky. If you have a credit score of 750 and above, you will be offered loans at an attractive rate of interest compared to those with a lower credit score.
A good credit score is a reflection of your timely credit repayment history. This makes you a low-risk borrower and you can avail the best rate of interest on all kind of loans.
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Credit Card Approval
Apart from a personal loan, a higher credit score is also your ticket to get a credit card with better rewards and benefits. A credit score of 750+ makes you a prime prospect for institutions offering premium credit cards with higher limits.
Higher Loan Amount
When you apply for a personal loan, the lenders look at your credit score to judge you as a borrower. If your credit score is beyond 750, not only you can avail a quicker loan approval but can also get a higher loan amount sanctioned. A low credit score, on the other hand, results in loan rejection or sanction of a lesser amount.
Quicker Loan Approval / Pre-approved Loans
As already briefed above, a credit score forms a crucial part of your credit profile. When you check your credit score online and if you have a high score, you will be offered pre-approved loans. Try checking your score with us here
One of the biggest benefits of maintaining a high credit score is quick and hassle-free loan approvals by banks and NBFCs. Credit profiles with higher credit scores and longer credit history enjoy a prime spot and get instant personal loan approvals.
Prepares You for the Future
Even if you don’t wish to apply for a personal loan or credit card right away, ensure that you maintain a good credit score and flawless credit history. Having a good credit score will come in handy in the future when you find yourself in need to apply for a loan. It will get you quick loan approvals without much delay.
Check Your Free Credit Score Online
If the pointers above have raised your interest in finding out your own credit score, tap here. We will share a detailed credit report free of charge! You may also be eligible for a pre-approved personal loan.
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