What is a good credit score? A guide for Indian borrowers in 2025

As the Indian economy evolves and financial literacy grows among consumers, understanding what constitutes and constructs a good credit score has become immensely crucial.

A credit score ranging between 300 and 900 is a numerical summary of an individual’s credit strength, his creditworthiness. This number is given by leading credit bureaus and is used by banks and financial institutions to understand and assess loan eligibility and interest rates.

This write-up is dedicated towards discussing the idea of a good credit score and to work as a guide for aspirational personal loan applicants and credit card users by helping them follow the correct steps to further strengthen their credit profile.

Expert views

In an exclusive conversation with Mint  Manish Jain, Country Managing Director, Experian India stated that, “Credit scores are best viewed on a scale from low to high, rather than being labelled as ‘good’ or ‘bad.’ A higher score—typically 750 or above—can provide access to more favourable interest rates, tailored credit offers, and a wider range of financial products.”

He further added, “One may still get access to credit with a lower score, but this would generally be at a higher cost. A lower credit score is not permanent. With consistent and responsible financial behaviour, it can improve over time. Key actions include making repayments on time, reducing outstanding balances, and maintaining low credit utilisation. These habits contribute to a stronger credit profile and support long-term financial wellbeing.”

What is a good credit score?

A credit score of 750+ is generally considered excellent in India. It reflects reputable and responsible credit behaviour and timely repayment history of credit card bills, personal loan EMIs etc. Below is a quick breakdown of excellent, good and fair credit scores:

• 750-900:This is an excellent credit score and comes with a high chance of quick credit card and loan approvals.
• 700-749:This is a good credit score, makes you eligible for most credit products with reasonable and fair terms.
• 650-699: This is a fair credit score, might result in the borrower facing higher interest rates and conditional loan approvals.
• 300-649: This is a poor credit score and comes with a lower chance of approval. Such applications are often rejected by lenders as this score means that the borrower is a high risk borrower.

What is the significance of a good credit score?

A fairly strong credit score, especially a score of over 750 can immensely impact your financial options. Borrowers with higher scores enjoy lower interest rates, easier loan approvals, higher credit limits and access to pre-approved offers.

Therefore, with RBI’s push for boosting credit inclusion and more digital lenders entering the market, your credit profile and a strong credit score matters more than ever.

How can you boost and improve your credit score?

Financial discipline and composure are both essential to boost and improve your credit profile, boost your credit report and credit score. For the same you should ensure that:

• Pay your credit card bills and EMIs within the stipulated time.
• Ensure that your credit utilisation ratio remains below 30%.
• Focus on checking your open loans and reduce them.
• Regularly follow up with your credit report and credit profile for errors.

Prominent credit bureau platforms such as Experian, CIBIL, CRIF High Mark and Equifax provide for a free annual credit score check for borrowers to be aware of their credit borrowing strength and integrity.

Frequently asked questions on credit scores

Q1. How many times should you check your credit score?

You should ideally check your credit score once every three months.

Q2. Will checking my own credit score result in lowering it?

No, it is a soft inquiry and it makes no impact on your credit score.

Q3. Is it completely cost free to check your credit score in India?

Yes, you can check and follow up with your credit score once a year on most platforms.

Q4. Can I improve and boost my credit score quickly?

Yes, you can, by paying credit card dues and EMIs on time and lowering credit usage.

Q5. What is the fastest way to construct a credit score from scratch?

For this you can start with a secured credit card and repay it regularly.

Conclusion

Therefore, a good credit score i.e., any score over 750+ goes a long way in defining your credit profile. Now, such scores help individuals in borrowing loans on easier terms and smoother repayment conditions. Whereas a poor credit score makes things extremely challenging for borrowers thus signifying the importance of a fairly good credit score in general life.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.