Understanding Credit Scores & Why They Matter

Your credit score is more than just a number — it is a reflection of your financial discipline. Lenders use it to evaluate how responsibly you manage debt, and this directly affects your loan eligibility and interest rates.

A high score signals timely repayments, controlled credit usage, and responsible borrowing, making lenders more confident in offering you better terms. On the other hand, a low score can lead to higher interest, stricter documentation, or loan rejection.

To maintain a healthy score, pay EMIs and credit card bills on time, avoid maxing out credit limits, and review your credit report regularly to correct discrepancies. Even small mistakes, like an old unpaid account, can impact your score.

Building good credit is a long-term habit, but it opens doors to easier borrowing and financial freedom.