Credit Score is a three digit number which ranges from 300 – 900 that represents the financial capacity of an individual. A healthy credit score plays a crucial role in our financial life. It determines the creditworthiness of the borrower. We can say that credit score is a financial
identity of a borrower.

Lending is a matter of trust and faith. Credit report helps in building trust. It makes borrower trustworthy.
For example :-
Just as your twelfth standard report card is essential for college admission. In the similar manner, your credit score is essential if you go for borrowing. Credit score shows the borrower’s past credit history.
Let us understand this better –
Just like your twelfth standard score determines your eligibility for any stream. In the same way, your CIBIL score shows how much a bank can lend you and how much flexibility you can get on interest rates.

Credit Score < 350 – Not valid/acceptable
Credit Score < 500 – Poor
Credit Score < 600 – Fair
Credit Score >  750 – Very Good
Credit Score >  800 – Excellent

1. Fast Approvals
2. Quick response from banks
3. Flexibility on interest rate range
4. Benefits in Credit Cards
5. Approval for Higher amount
6. Lesser chances of rejection
7. More offers or discounts
8. Boost goodwill &amp; Increases eligibility
9. Reduces future financial crisis
10. Other financial benefits

Your credit history and your credit card utilization shows the greater impact on your credit report. Once your score gets improved following are the points that you should keep in mind to maintain your CIBIL score –

1. Avoid delay payments
2. Monitor your credit history
3. Know your eligibility before applying
4. Avoid becoming guarantor of a borrower
5. Too many enquiry negatively effect your credit
   score.
6. Too many debts also affect your credit score.