As the Indian economy develops and financial literacy among consumers grows, the understanding of what constitutes and constructs a good credit rating has become very important. A credit point of between 300 and 900 is a numerical summary of an individual’s credit strength, its creditworthiness. This number is given by leading credit bureaus and is used by banks and financial institutions to understand and assess loans and interest rates. This record is committed to discussing the idea of a good creditworthiness and working as a guideline for aspiration applicants for personal loans and credit card users by helping them follow the right steps to further strengthen their credit profile. Expert views in an exclusive conversation with Mint Manish Jain, Country managing director Experian India, said that ‘credit values are best considered on a scale of low to high, rather than becoming as’ good’ or ‘bad’. A higher score – typically 750 or higher – can provide access to more favorable interest rates, adapted credit offers and a greater variety of financial products. “He further added:” One can still access credit with a lower score, but it would usually be at a higher cost. ” A lower credit rating is not permanent. Reliable and responsible credit behavior and timely repayment history of credit card accounts, personal loan EMIs, etc.. Reasonable and fair conditions. 300-649: This is a poor creditworthiness and has a lower chance of approval. Such applications are often rejected by borrowers, as this score means that the borrower is a high risk lender. What is the meaning of a good credit rating? A fairly strong creditworthiness, especially a score of over 750, can greatly affect your financial options. Higher scores enjoy lower interest rates, easier loan approvals, higher credit limits and access to pre -approved offers. Therefore, your credit profile and a strong creditworthiness are more than ever, with RBI’s pressure to increase credit inclusion and more digital lenders entering the market. How can you increase and improve your credit rating? Financial discipline and calm are both essential to increase and improve your credit profile, increase your credit report and credit rating. For the same, you need to make sure that: your credit card accounts and EMIs pay within the set time. Make sure your credit consumption ratio remains below 30%. Focus on checking your open loans and reducing them. Regularly follow up your credit report and credit profile for errors. Prominent Credit Bureau platforms such as Experian, Cibil, Crif High Mark and Equifax allow for a free annual creditworthiness check for lenders to be aware of their credit loan strength and integrity. Questions asked about credit values Q1. How many times do you have to check credit rating? You should check your credit rating once every three months. Q2. Will it check my own credit rating to lower it? No, it is a gentle examination and it has no impact on your creditworthiness. Q3. Is it completely cost free to check your credit rating in India? Yes, you can check and follow up your credit rating on most platforms once a year. Q4. Can I quickly improve and increase my credit rating? Yes, you can, by paying credit card fees and EMIs on time and lowering credit consumption. V5. What is the fastest way to set up a credit rating from scratch? For this, you can start with a secure credit card and repay it regularly. Conclusion Therefore, a good creditworthiness, ie, any score of more than 750+ is a long way in defining your credit profile. Now such scores are helping individuals to lend loans on easier conditions and smoother repayment conditions. While a poor creditworthiness makes things extremely challenging for lenders, which means the importance of a fairly good creditworthiness in general life. Disclaimer: Mint has a fusion with fintechs to provide credit; You must share your information if you apply. These bonds do not affect our editorial content. This article only intends to educate and distribute awareness about credit needs such as loans, credit cards and credit values. Mint does not promote or encourage credit as it has a set of risks such as high interest rates, hidden costs, etc. First published: 16 Apr 2025, 02:14 PM IST
What is a good credit rating? A guide for Indian lenders in 2025 | Mint
