📖 Understanding Your Credit Score

Credit score is a 3-digit number (300-900) that represents your creditworthiness. In India, CIBIL (Credit Information Bureau India Limited) is the most popular credit bureau. Banks check your CIBIL score before approving loans or credit cards.

A high credit score (750+) means you're a low-risk borrower and can get loans at lower interest rates with faster approval. A low score may lead to loan rejection or higher interest rates.

Key factors affecting your score include timely payment of EMIs and credit card bills, credit utilization ratio (keep below 30%), length of credit history, mix of secured and unsecured loans, and number of recent credit enquiries.

To improve your score: pay all dues on time, don't max out credit cards, maintain old credit accounts, avoid multiple loan applications simultaneously, and regularly check your credit report for errors.