Your credit score is the single most important number in your borrowing life. Here's how it's built — and how to fix it.
A credit score is a three-digit summary of your borrowing behaviour, ranging from 300 to 900 in India. Anything above 750 is considered strong, and unlocks the best rates from banks and NBFCs.
Four factors drive your score: repayment history (35%), credit utilisation (30%), credit mix and tenure (20%), and recent enquiries (15%). The biggest single mistake borrowers make is closing old credit cards — it shortens your tenure and can drop the score by 30–50 points.
If your score is below 700, the fastest path back is to pay all EMIs on time for 6 months, keep utilisation under 30% of your card limit, and avoid applying for new credit until the score recovers.
