What Is a Good Credit Score and Why It Matters?

A credit score is a three-digit number that represents your creditworthiness. It plays a crucial role when applying for loans or credit cards. In India, a credit score of 750 or above is generally considered good and increases your chances of loan approval at favorable interest rates.

A good credit score reflects responsible credit behavior such as timely loan repayments, low credit utilization, and a balanced credit mix. On the other hand, late payments, loan defaults, or excessive credit inquiries can negatively impact your score.

Maintaining a healthy credit score not only improves loan approval chances but also helps you negotiate better loan terms. Regularly checking your credit report and correcting errors can further improve your score.

At LoanPandit, we assist customers in understanding their credit score and guide them on improving it to access better financial opportunities.