Understanding loan eligibility
What lenders typically look at when you apply, and practical steps to strengthen your application.
A credit score is a three-digit number, generally between 300 and 900 in India, that summarises your credit history. Credit information companies calculate it from the information lenders report about your loans and credit cards.
What affects your score
- Repayment history: paying EMIs and card bills on time.
- Credit utilisation: how much of your available card limit you use.
- Credit mix and age: the types of credit you have and how long you have had them.
- New applications: many applications in a short period can be a negative signal.
Healthy habits
- Set up reminders or auto-debit so you never miss a due date.
- Keep card balances well below your limit.
- Review your credit report regularly and dispute errors with the credit information company.
- Apply for new credit only when you need it.