What is a Good Credit Score?

For the readers who are confused between credit cards and debit cards, then in simple language credit cards are issued by the banks, before giving you the credit card, they would check all the related queries like will you be able to pay back the amount or not! What profession you are in and a bunch of others, because through credit cards, you can withdraw money and spend it, that is not yours. You have to repay all the amount you have taken as a loan after a certain period. But using a debit card, you are only allowed to withdraw money from your bank account. That is the basic difference. And that’s how credit score comes into play. An individual’s credit score will play a massive role in the future whenever he or she will try to issue a loan. The lenders such as banks or any private companies will evaluate your credit score closely before giving you any loans, whether you are capable of giving it back or not! They will look at your payment history, how good your credit score is, how well you have been managing your credit cards, etc. If they find that your credit score is not matching their limit then they may reject your loan. On the other hand, if your credit score is quite good, you could get a low-interest rate loan that would work in your favor.

Good Credit Score

What is a Credit Score?

A credit score is a 3 digits number that shows the worthiness of your credit card, it mainly varies between 300 to 900, 900 is the highest score possible. Your credit scores are checked by banks and credit card companies and calculated using data on your credit card such as payment history, your debt, the length of your credit card, etc.

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As mentioned earlier your credit score will decide whether you will get a loan or not! Or if you get then how convenient it would be for you in terms of paying interest rates! We know people have different kinds of financial situations in their life and it can impact your credit scores as well.

People sometimes have doubts about their scores, what should be the credit scores that can help you get a better deal, there is no exact number for that. But to have a perspective, if your credit score is between 590-670, then it is considered fair, if the score is between 671-739, then it will be a part of a good credit score, and if the score is between 740-799 then it is considered very good, and 800 and up are considered excellent. A higher score shows that you have managed your credit card wisely which makes your lenders more confident while giving you a loan.

You can check your score on Cred, a company founded by Mr. Kunal shah. Along with that, you can make your payments, you can pay your bills on time, you will get cred coins, cashback up to $7-8, etc. your score is created by credit bureaus such as Experian, CRIF High Mark, Equifax, and CIBIL, etc. The chances of getting approval for your loan are as high as your score.

Therefore, it is important to keep in mind the factors that can impact your score. There are a couple of factors that can affect it such as not paying the bills on time, if your credit score is not in a good position then it might have happened because of late payments or missed payments. And that is the major reason behind having low credit scores. It also happens if you use your credit card excessively.

 There are a bunch of other reasons, let’s have a look at all the ways to improve your credit scores one by one,

  1. PAY CREDIT CARD DUES ON TIME: When it comes to calculating someone’s credit score, that part alone has taken the maximum weightage. It impacts heavily on your credit scores whether you are paying your bills on time or not! If you have taken any loans, try to give it back within the period. Otherwise, you will get a lower credit score as well as a high interest that will be levied on you.
  1. KEEP YOUR CREDIT UTILISATION RATIO LOWER: If your credit utilization ratio is around 30% then it is considered a good ratio. If the ratio is more than that, then it can become one of your reasons to get a lower score.
  1. Avoid multiple credit cards and loans within a short period.
  1. You shouldn’t change your old credit cards because you are getting a new one with some lucrative offers. If you do that, then all of the consistency that you have been paying your bills on time will vanish.


 A good credit score is such an important thing that has a lot of benefits. If you seek genuine advice on the internet, you get to know that having a credit card is not a good option, but if you go to a successful person, then they use cards because they know how to get benefits out of it.

What is a Good Credit Score?

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