Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > What is a Good Credit Score? Benefits of Having a Good Credit Score

What's Trending

What is a Good Credit Score? Benefits of Having a Good Credit Score

What is a Good Credit Score? Benefits of Having a Good Credit Score

Surviving with a bad credit score is possible, but not easy and definitely not cheap. Since this number defines your creditworthiness, a healthy score is vital to get a lower interest rate on a loan. So, if you’re thinking of opting for any kind of loan, we recommend checking this score before applying.

What is a good credit score?

Individual credit rating awarded by CIBIL runs on a scale between 300 and 900 points. The higher you score on this scale, the better.

  • 580 – 669 are fair
  • 670 – 739 are good
  • 740 – 799 are good
  • Above 800 are excellent

While this is a standard measure, these ranges are not set in stone. If your score is below 580, it doesn’t mean you cannot apply and get approved for a loan. You most certainly can, but you may have to pay a slightly higher rate of interest.

You can check your credit rating or score by logging on to the official CIBIL website. However, don’t check it more than once or twice, as multiple inquiries can negatively affect it.

Good credit score benefits

1. Enjoy low-interest rates on loans

A high credit or CIBIL rating shows a potential lender that you’re capable of repaying your loan on time. This way, you become a desirable loan candidate, and a lender would extend finance at best possible interest rate.

And, the lower your interest rate, the cheaper your loan. Since you’ll be paying an affordable interest rate, you’ll also get rid of the loan faster.

Additional Read – How Often Should you Check Credit Score

2. Improve your chances of loan approval

As a rule of thumb, a healthy CIBIL score improves your chances for approval of new credit or loan. In other words, with a high credit rating, you can apply for any type of finance with confidence. This is especially helpful when applying for a personal loan.

3. Get higher loan limits

How much loan amount you can borrow depends on your income and credit rating. Naturally, when your score is high, lenders are willing to give you a higher amount. However, this doesn’t mean you won’t get approved for a higher loan amount if you have an average credit rating. But you will probably have to pay a higher interest rate.  

4. Get desired credit card(s)

Running a CIBIL score check before applying for your desired credit card – one with a high limit, international lounge access, etc. is a great idea. Needless to say, the higher your credit rating, the better your chances for receiving a worthy credit card with a low-interest penalty.

Additional Read – All You Need to Know About CIBIL Score

The bottom line

Want to apply for finance? Check credit score online. If you think it’s low, fret not! Improve it within days by repaying your previous credit card bills and EMIs on time.

At Tata Capital, we extend finance to individuals with varying credit ratings at affordable interest rates and flexible tenures. 

Check Credit Score
Popular Searches
cibil score annuity types what is crif score loan for defaulters domicile certificate meaning credit score vs cibil score how to remove enquiry from cibil importance of credit rating crif vs cibil cibil score for car loan
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.