Credit score is a numeric summary derived from
Higher the score, the more favourably it is viewed by Financial institutions
There is no standard cut-off for a good score or a loan application; different banks have different barometers.
BALANCE in partnership with Experian Credit Information Service, India’s first and foremost Credit Bureau Services brings to you online and convenient access to your Credit Profile on the app.
Benefits of using the Credit Score service in partnership with Experian:
Experian Credit Score is similar to CIBIL Score. Please note, there are 4 Bureau Services in India, like Experian and CIBIL (by TransUnion). Experian and CIBIL are two of the largest bureau services and Experian being the first to be approved by RBI. Most Banks and Finance Companies refer to your Credit Score from two Bureaus which are most like the above ones mentioned.
Generally most Credit score points ranges between 300-900 and the closer it is to 900, the better it is. A higher score increases your chances of getting favourable terms on Loans & Credit cards
|Score||Rating||What it means|
|NA/NH||NIL||If you have no credit history, your credit score will be NA (Not Applicable)/NH (No History). This may also be the case, if you have recently taken loans/credit cards as it takes 3-4 months to build your credit score|
|300 -500||BAD||Considered as a Bad credit score. It suggests that you have not been a responsible borrower and have defaulted payments and have unpaid dues. You should address your Loan payment issues immediately as you would most likely be not able to get any new loans and face trouble with respect to past loan history|
|500-650||AVERAGE||A credit score in this range is considered as average. You will need to take measures to improve your credit score. If you have past payment issues, you should address the same immediately.|
|650-750||GOOD||A credit score in this range is considered as good and lenders will consider offering you credit in the form of a loan or a credit card. However, you should still try to improve your Score further upwards. Reason for such score could be either if you have some past defaults or your loan history is not adequate or in the process of getting build up.|
|750-850||GREAT||This is a Great Credit Score, this should give you the additional power to negotiate for better deals on interest rates of Loans/Credit Cards. Keep up the good work!|
|850+||EXCELLENT||Excellent, Very few people achieve this Score which is between 850 to 900. People have long and excellent repayment track record and rarely defaulted on payments are able to achieve this. Helps you get the best Loan/Card deals|
Following factors influence your score
Pretty much the same things goes in deciding your Credit Score, like
Different Lending institutions have lot of other criteria to look at which undermines there internal policy that differs from one company to another.
Your Credit Score is one of the most important deciding factors when you apply for a Loan or Credit card facility from any financial institution. Balance in partnership with Experian Credit Bureau, India’s leading Credit Information company provides you instant access to your Credit Score and detailed profile of your Borrowings.
If you have a long history of effectively managing credit (taking and paying back loans) and your repayments are on time, then it is likely that you will have a Good credit score and will be more likely to be avail future loans or other credit facilities with favorable terms and rates. If you've never used credit or have negative information on your credit report, like missed payments, you may be less likely to get a loan or credit card. If you do get the loan or credit card, you may get less favourable rates.
Building credit takes time, so it's important to begin building your credit before you really need it.
In case you are new to credit then it is most likely that you may not have a Credit score. Most people when they start their first job or start earning, start thinking of availing outside credit (loans etc). Many a times, your first credit instrument is a Credit Card taken at the time of first job or provided to you by your Bank. In case you do not have any Credit history in past, still you can comfortably build a credit score.