What is a Credit Score?

A Credit Score is a number computed by an approved credit rating agency and it provides a hint of the credit worthiness of an individual. The three-digit credit score plays an important role in getting you the credit you want at better rates. Credit score in India is provided four credit bureaus namely, Equifax, Experian™, CIBIL™ and CRIF Highmark™ which ranges between 300 to 900.

An individual's Credit Score provides a credit institution with an indication of the "probability of default" of the individual, based on their credit history. A Credit Score tells a lender / credit institution (typically banks or NBFCs) how likely you are to pay back a loan based on your past pattern of credit usage and loan repayment behaviour.