A credit score is a three-digit figure between 300 and 900 used to assess a person’s creditworthiness. Credit scores are determined by the nation’s credit agencies after taking into account a number of variables, including the duration of your credit history, repayment history, and number of credit inquiries, among others.

A higher credit score may entitle you to additional benefits when you apply for a credit card or loan from a bank or NBFC, such as a larger loan amount, a reduced interest rate, and a longer repayment period.

Credit Information Bureau (India) Limited (CIBIL), CRIF Highmark, Experian, and Equifax are the four credit information businesses in India that have been granted licences by the Reserve Bank of India to construct credit ratings.