Understanding Credit Scores in India: How to Improve Yours

&NewLine;<figure class&equals;"wp-block-image size-large hts-content-image"><img src&equals;"https&colon;&sol;&sol;images&period;unsplash&period;com&sol;photo-1651129518942-21b21bd497e9" alt&equals;"Understanding Credit Scores in India&colon; How to Improve Yours"&sol;><&sol;figure>&NewLine;<h2>What is a Credit Score&quest;<&sol;h2><p>A credit score is a three-digit number ranging from 300 to 900 that reflects an individual’s financial health&period; In India&comma; credit scores are crucial as they help lenders assess the creditworthiness of borrowers&period; Scores above 750 are considered good and increase the chances of loan approval at favorable terms&period;<&sol;p><h2>Factors Affecting Your Credit Score<&sol;h2><p>Several factors influence your credit score&comma; including timely repayments&comma; credit utilization&comma; and the overall length of your credit history&period; Timely repayment of loans and credit card bills showcases a responsible approach to credit management&comma; while keeping your credit utilization low — ideally under 30&percnt; of your total credit limit — demonstrates financial discipline&period;<&sol;p><h2>How to Improve Your Credit Score<&sol;h2><p>Improving your credit score can enhance your loan eligibility&period; Regularly monitoring your credit report allows you to identify any discrepancies that might affect your score&period; Additionally&comma; making timely repayments and maintaining low credit utilization are effective strategies&period; If you have a low score&comma; consider using secured credit cards or small loans to build up your credit history gradually&period;<&sol;p>