Credit score basics: what it is and how to improve it

A credit score is a three-digit number that tells lenders how reliably you have repaid credit. Scores in India typically range from 300 to 900, and lenders generally treat 750 and above as good.

The biggest factors are paying every EMI and card bill on time and using only a modest share of your card limit. A common rule of thumb is to keep utilisation below 30 per cent. A long credit history helps, while many new loan applications in a short time can lower the score.

Check your report at least once a year. Under RBI rules, you can get one free credit report every year from each credit bureau. Look for loans you did not take or wrong payment records, and raise a dispute with the bureau if you find errors.

Do not pay anyone who promises to 'repair' your score quickly. Only time and good repayment habits do that.