Money Clarity

What is a good credit score in India?

Scores in India run from 300 to 900 across all four bureaus. Above 750 is where pricing genuinely improves; 700 to 750 gets approved but rarely at the advertised rate; below 650 the question changes from what rate to whether at all. The useful framing is not the number but what each band changes about what you are offered.

The problem: the number is treated as a grade, not as a price

People check the score, feel good or bad about it, and stop. The score is not a report card. It is an input to a pricing formula, and the only reason to care about it is what it costs you in rupees.

Two people with the same score can be offered different rates, because income and existing obligations also weigh
A bank’s advertised "starting from" rate is for its best band, and most applicants do not get it
Crossing a band boundary changes the offer more than moving twenty points inside a band
Your score matters most at the moment you apply, and not at all in between

What each band actually changes

These are the practical thresholds most Indian lenders use. Individual policies vary, but the shape is consistent across the market.

750 and above: approved at or near the advertised rate, higher limits, pre-approved offers, faster processing
700 to 749: generally approved, but usually one to three percentage points above the headline rate
650 to 699: approvals become selective, more documentation, noticeably higher pricing, secured options suggested
Below 650: mainstream unsecured credit becomes difficult; secured cards and loans against deposits are the practical route
NH or NA (no history): not a bad score - it is no score, and it is fixed by having any reported account for six months

What that difference is worth in rupees

Concretely, so the band is not an abstraction.

On a Rs 10 lakh personal loan over 5 years, a 3 percentage point rate difference is roughly Rs 90,000 in extra interest
A credit card limit set at half what you would otherwise get raises your utilisation permanently, which suppresses the score further
Being pushed from an unsecured to a secured product means locking up a deposit you could have used
The gap between 720 and 760 is often worth more than a year of saving harder

How to move a band, in the order that works fastest

Ranked by effect per unit of effort. The first two work inside a single reporting cycle now that lenders report twice a month.

Bring card utilisation below 30 percent measured on the statement date - fastest available move
Fix any reporting error, which is free and can be worth more than everything else combined
Stop applying for anything for three to six months and let enquiries age
Keep the oldest account open, even unused, with one small recurring charge to stay active
Add a reported account if you have no history - a secured card against a deposit builds a file within six months

Common questions

What is a good credit score in India?

Above 750 on the 300 to 900 scale is where you are approved at or near advertised rates. 700 to 749 generally gets approved but at higher pricing. Below 650, mainstream unsecured credit becomes difficult and secured products are the practical route.

What credit score do I need for a personal loan?

Most Indian banks look for 750 or above for their advertised rates, and will typically consider 700 and above at higher pricing. NBFCs go lower with correspondingly higher rates. Income stability and existing EMI obligations weigh alongside the score, so it is not the only gate.

What does NA or NH mean on my credit report?

It means no available or no history — you have no reported credit accounts, not a bad record. It is common for first-time borrowers. Any reported account held for about six months creates a scoreable file; a secured credit card against a fixed deposit is the usual way to start.

Aim for 750, because that is where the pricing changes rather than where the compliments start. And check the report before you apply for anything large - an error found a month early is worth more than any amount of score optimisation.

Written by Danish Mirza, founder of Unyfy. 14 years in Indian lending and collections at Standard Chartered, Barclays, Ola Money and Uni Cards.
Last reviewed 2026-09-09.