As financial literacy, knowledge of credit management, credit scores and credit profiles etc., continues to gain traction across the country, understanding what constitutes a good credit score has become increasingly important, especially for residents of metropolitan cities such as Bangalore.
It is important to remember that a strong credit score goes a long way in not only enhancing your financial credibility but it also opens up better personal loan and credit card opportunities for prospective applicants. Not only this, it also boosts efficient credit management. This write-up hence is written with an objective to discuss what can be a good credit score for a city like Bangalore.
What are the credit score ranges in India?
According to various prominent credit rating agencies in India, credit score ranges from 300 to 900 primarily. A higher credit score naturally means better creditworthiness. On similar lines, a credit score of 750+ is tagged and considered as excellent.
Whereas scores between 700 to 749 are deemed as good. Lastly, scores below 700 are considered as poor and can limit access to easy and seamless lower interest rate loans. That is why higher the credit score better is the chance of securing a fresh loan in a smooth manner.
What is the significance of a good credit score in Bangalore
Bangalore is the “Silicon valley of India”. It is officially known as Bengaluru, it is the capital of Karnataka. Now, in such a high paced and expensive city, a good credit score is important for securing a seamless personal loan, credit card or other credit instruments.
According to HDFC Bank, a score of over 750+ can lead to lower interest rates, higher credit limits, flexible repayment plans along with seamless loan approvals. That is why, in a challenging environment in the city like Bangalore, taking care of your credit score and keeping it over 750+ can prove to be a significant advantage.
What are some tips to maintain and improve your credit score in Bangalore?
To achieve and maintain a good credit score in Bangalore, you need to follow the given points diligently.
- Consistent payments: Do ensure that all your loan EMIs and credit card bills are paid on time. For the same do set up alarms and auto debit payments.
- Check your credit utilisation:You need to ensure that your credit utilisation ratio is always kept below 30% of your total credit limit.
- Following up and regularly monitoring: Do check your credit report and your overall credit profile for errors and improve the same promptly.
- Focus on taking no more loans:You need to ensure that you avoid applying for multiple loans or credit cards in a short-span of time.
Therefore, by following these simple steps, individuals can boost and enhance their credit profiles and creditworthiness. Such a development will allow them to access better financial opportunities for themselves and their families in an ever evolving city like Bangalore.
Conclusion
Hence, for Bangalore residents maintaining and understanding the basics of a good credit score is crucial for their overall financial prosperity. By maintaining credit scores above 750+ individuals can immensely benefit from improved loan terms and credit opportunities. As scores over 750 are considered as extremely strong.
Your responsible credit behaviour and consistent monitoring of your credit profile for errors are keys to building a strong credit score and a robust credit profile.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
