What Is A Good Credit Score For Personal Loan? Here’s How Credit Score Is Calculated But Take Care Of Factors That Impact Your Rating

A credit rating is very crucial in determining financial opportunities. It affects loan issuances, interest rates and credit product access.

The credit score difference between the good, bad and excellent scores will ensure that people make the right financial decisions, and they will not get into avoidable difficulties when seeking loans.

Check your credit score

Credit scores in India range normally between 300 and 900, with CIBIL being the most popular bureau. Any score more than 750 is usually taken as healthy and raises the possibilities of loan approval.

Reportedly, in India, almost 79 percent of loans are approved to people with a score of more than 750, and this is an excellent example of the importance of the correct score to financial stability and loan-taking ability. The interest rates and limited offers on scores of less than 600 can be a great barrier to the borrower by putting a great strain on financial means.

What is a Credit Score?

A credit score is a number that credit bureaus create with the help of the following:

Repayment history

Credit utilisation ratio

Length of credit history

Type of credit accounts

Number of enquiries

This score aids the lenders in determining the creditworthiness of the borrower. The credit utilisation ratio and discipline in repayment are very significant. The variation in credit score between ranges determines the ease with which a borrower can get access to financial products.

Influencing Factors Affecting Credit Score

Some of the habits affecting the credit score differences are:

Late payments or missing EMIs

Extensive use of credit card

Already several loan applications within a short period

Having no mix of credit types

Failure to verify credit reports against errors

NOTE: Do not apply to more than one loan at a time- this will reduce your score rapidly and add more days past due to your reports.

What is a Good Credit Score in India? 

A good score is not merely a number; it determines your financial future and the way lenders look at you.

Low-cost Borrowing: Favourable rates help to save a lot of money.

Premium Products: Increased scores open cards with benefits.

Financial Confidence: Borrowers are able to bargain with lenders.

A high score is especially crucial in the case of taking a personal loan wherein, they are unsecured, and any difference in credit scores is critical to get them approved. Poor scores on buyers may find it hard to handle quick money loans.

ALSO READ: Gold and Silver Price Today on 18 December 2025: Check 18K, 22K, 24K Gold Price in Chennai, Hyderabad, Delhi, Mumbai, Kolkata, Bangalore