Your CIBIL score often becomes important when you plan to borrow money. A score of 730 can leave you unsure because it is neither very low nor very high. You may wonder whether it is enough to get a loan at a good interest rate, or if you should improve it first.

You’ve got a good track record of paying back your loans on time, but two different credit scores are staring back at you from two different reports.

Meera, a 29-year-old marketing executive in Bengaluru, applied for a Personal Loan to fund a home renovation. The approval landed within minutes at a competitive rate. Her cousin, with a similar salary, faced a longer process. The difference came down to one number: their Experian credit score.

A few months ago, Vivek took a small consumer durable loan to buy a laptop. Around the same time, he already had a bike EMI running, and used his credit card heavily during a family trip. Later, when he applied for a personal loan, the lender said his credit exposure looked higher than expected.

Rahul went into the loan process assuming things would move smoothly. He was consistently on time with every EMI, and his credit score was 742. However, his loan...

Your credit plays an important role in the approval of your credit applications. It shows a detailed record of your credit history, loan inquiries, and outstanding debts. Loan Inquiries show in your credit report when a lender reviews your credit report to check your creditworthiness. But, if there are multiple inquiries in a short period, it can affect your credit score.

Your credit score shows how likely you are to repay the lender. And achieving a credit score of 850 is considered highly exceptional by lenders. It means you are extremely responsible about repaying the money. But can you actually achieve a credit score of 850?

Rajnish is a salaried professional in Pune. He applied for a personal loan to cover a medical emergency. All his documents were in place, displaying his steady income and stable job. Still, his application faced delays. When he checked his credit report, he noticed a ‘settled loan account’.

A loan application is assessed not only on an income basis but also on previous lending behaviour. Before loans are given or interest charged, lenders consider extensive credit history.

This data is provided by a credit agency that maintains records of borrowing and repayment behaviour. To determine how lenders evaluate creditworthiness and decide whether to approve or deny a loan, it makes sense to understand credit bureaus.