Explained: What is a credit score, why is it important & how to improve it

A credit score is among the first things a financial institution would check in order to sanction a loan

Credit Score
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Any number above 650 on a scale of 300-900 is considered a good credit score

BS Web Team New Delhi
What is a credit score?

A credit score indicates a person’s ability to repay a borrowed amount. It is a three-digit number in the range of 300 to 900. A credit score closer to 900 indicates that a person is more likely to pay off the loans on time while a lower score indicates that the person is likely to default on the borrowed amount. In short, the number depicts the creditworthiness of a person.

What is the importance of a credit score?

A credit score is among the first things a financial institution would check in order to sanction

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First Published: Jul 22 2022 | 11:18 PM IST

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