If you are planning to apply for a loan or a credit card, then your credit score would matter a lot. It is an indication of the credit risk (or no risk) that you possess to money lenders. Credit score ranges from 300 to 900 where any score above 750 is a good credit score. Let us know in detail about the average credit score range.
Credit Bureau Agencies in India
In India, Credit Score is given by the following credit bureaus:
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Decoding the Range of Credit Score
As discussed above, a credit score ranges anywhere from 300 to 900. Here is a comprehensive breakdown of the credit score levels.
- Excellent Credit Score (800 and above)
If your credit score falls under this range, you are considered to be highly responsible with finances. You are considered to be the prime candidates for instant loans at the low interest rates. You may have no or little history of late bill payments and are considered low risk for defaulting credit agreements.
- Good Credit Score (700-800)
If your credit score is between 700 and 800 are considered to be financially responsible when it comes to credit management. You might have missed a payment or two but generally, most of the payments including loan repayments and credit card bills are paid on time. Also, the credit utilization ratio is optimum. You will get a loan from banks easily.
- Average Credit Score (500-700)
If your credit score falls in the range of 500 to 700, then you have an average credit score. This means you will have to work on your credit profile. Although you might not get a loan from the bank easily, with this credit score, you are likely to get loans from NBFCs and other fintech lenders. You can improve it by paying credit bills on time, keeping the right credit mix and avoiding closing old account for a longer credit history.
- Poor Credit Score (Below 500)
Any score below 500 means that you have a history of several missed payment deadlines, default credit accounts, etc. If you visit any bank or NBFC to borrow money, you may be rejected right away or given credit at a very high rate of interest.
Note: The range mentioned above is only indicative in nature and different credit bureaus have their own formula and range for credit score calculation. You may have a credit score of 850 with Experian and CIBIL score of 725 at the same time. It is recommended that you check your credit score from multiple credit bureaus for free at Paisabazaar and find if you fall in the Good or Excellent category.