A credit score is like a key to the lock called ‘loan’. If you have the perfect key of credit score, you can open any lock of desired loan. A credit score is a three digit summary of your whole financial history. The credit score is determined by your previous loan details, savings accounts, transactions, income details, ITR, age, locality etc. Banks and NBFCs offer loan and credit cards based on the credit score of the applicant. Credit score ranges from 300 to 900. 750 is considered as a good credit score by banks and NBFCs.
A good credit card helps you to get quick approval on loan or credit card. You can negotiate for lower interest rate with your banker if your credit score is strong. You can also avail higher credit limit on your credit card if you have strong credit score. But having a lower or zero credit score can be harmful for your loan or credit card application. So be prepared by knowing exactly what can affect your credit score