by PrognoAdvisor, News That Matters

How to improve your credit score in India

How to improve your credit score in India

Your credit score is one of the most important numbers of your life.A credit score sums up your credit risk, or it represents how reliable a borrower you are. (For example, the likelihood you’ll pay your bills on time). It is more than just a number. It represents your creditworthiness, how well (or poorly) you manage your debt.

A good credit score ranges from 800-850. If you have a score of 800 and above, banks and other NBFC’s consider you to be credit healthy. But if you have a score less than 800, banks feel it is as a risk to provide you a loan or credit card. Banks and other NBFC’s are comfortable with approving loans to customers who have a score of 800 and above.There is a hard fact that 75% of loan and credit application are with held due to poor credit record of the applicant.

There are 4 credit bureaus in India which are authorized by RBI. You can choose to get your credit score online from the websites of any of the bureaus. Equifax India, High Mark Credit Information Services Pvt.Ltd and Experian, along with CIBIL are the four credit bureaus in operation in India There are also a few reputed credit management companies which help you understand your credit health and provide online analysis.

Benefits of having a good credit score

·         Having good credit is important because it determines whether you’ll qualify for a loan. 

·         Maintaining a balance between secured and unsecured loans.

·         A good credit score gives you leverages to negotiate a lower interest rate on your credit card or a new loan.

·         Ensuring your debt-to-income ratio is low.

·        No (or low) Security Deposits, as utility companies and other service providers are happy to offer their services to customers who have a history of paying bills on time.


There are various factors that affect the credit score, which includes, Payment history, total amount owed, length of credit history, types of credit, new credit etc. When information is updated on a borrower’s credit report, his or her credit score changes and can rise or fall based on the new information.Thus paying your bills on time and in full consistently will help you prevent damaging your credit score.

It can be considered as a value expressing your creditworthiness.

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