What is a credit score?
In India, credit bureaus such as TransUnion CIBIL, Experian, Equifax and CRIF High Mark compile your repayment history and show a three-digit score, commonly on a 300 to 900 scale. Higher is generally better for loan approval and terms.
What moves it
- Payment history: late or missed EMIs and card dues hurt the most.
- Credit utilisation: using most of your card limit regularly can lower it.
- Loan enquiries: many applications in a short time can signal desperation.
- Age and mix of credit: a longer, steady record helps.
Check your report
You are entitled to a free full credit report from each credit bureau at least once a year. Read it for accounts you do not recognise, since errors and identity misuse can be disputed.
What an EMI really costs
EMI = fixed monthly payment covering principal and interest. A longer tenure lowers the EMI but raises the total interest. Before borrowing, compare the total amount repaid, not only the monthly figure, and check processing fees and prepayment charges. Our EMI calculator shows the maths.
Borrow only from lenders listed as authorised by RBI. Education only; not a recommendation to borrow.
Sources
We summarise in our own words and link to the original sources.