Credit score plays a major role in your financial journey. Whether you are a first time borrower for a loan or a credit card, the first thing lenders notice in your application process is your credit score to understand how responsible you are as a borrower. The appropriate range might vary from different lenders, but one ideal figure that is considered to be a good number is a 750 credit score. However, we first need to understand the factors behind a good credit score and what is the need to maintain it
A credit score is a number of how effectively a person handles borrowed funds. It normally lies within a specific range and enables the lender to assess the creditworthiness of the borrower. The credit score is calculated by assessing a number of factors including the payment of bills on time, the number of existing loans, the total amount of outstanding loans, the period for which the credit has been used, the type of credit facilities, recent inquiries for credit, and the overall payment habits.The lender understands your creditworthiness and the rate of interest you are eligible for is based on your credit score
Is a 750 credit score good or bad? Initially, everyone has this doubt in their mind. But the clear answer is that a 750 credit score is considered to be an ideal and good credit score by most of the lenders. A good credit score will improve your financial condition and you will learn to manage your finances responsibly. In this blog, let’s clearly understand what a 750 credit score means, the benefits of a 750 credit score, how lenders view it, and how you can maintain it to enjoy long term financial stability.
What Does A 750 Credit Score Mean?
In the Indian context, the credit score is normally between 300 and 900. The higher the credit score, the better your credit habits. A credit score of 750 is very much in the “good” to “excellent” range. It reveals that you have been maintaining a good track record of repayment, using credit under control, and have good money habits.
This credit score is taken as an indicator that you are less likely to default on payments or loans. This is why people who have borrowed money often ask if it is good or bad to have a credit score of 750. It is definitely good.
750 Credit Score: Good Or Bad?
If you’re still confused whether a 750 score is good or bad, try to understand it from the lender’s perspective. In India, anything above 700 credit score is considered to be a good score by the lenders. Moreover, an ideal number for a credit score is slightly higher than the 700 credit score. A750 credit score is considered a perfect number to maintain your credit score. This will help the lender in reducing the risk factor and trusting the borrower.
Hence, this clearly states that a 750 credit score is not only considered to be good but it is also an advantage.
Advantages Of A 750 Credit Score
There are many benefits of a good credit score that can make your financial decisions and borrowing money way easier. Here are some advantages of having a 750 credit score:
- Higher Instant Loan Approval Chances
Whether you are applying for a personal loan, home loan or any other type of loan, the one thing lenders consider will be a good 750 credit score. This will improve your chances of getting instant loan approval.
- Decrease in interest rates
There is nothing harmful in maintaining a 750+ score to avail lower interest rates charges. This will help you to save some amount of money instead of paying a higher interest rate.
- Increase in credit limits
With a good credit score you will be able to have higher credit limits. Most of the banks or lenders provide a high amount of credit limit on credit cards for users with a good credit score.
- Easy access to Premium Credit Cards
Having a credit score of 750 can qualify you for premium credit cards that come with better rewards and benefits.
- Instant Approvals
When you have a good credit score, the processing of your loan application is done faster. This is very important when you need urgent cash or when you want fast approvals for credit cards.
Lenders Perspective:
From the lender’s side, a borrower with a credit score of 750 is said to be low risk. This is an indication of:
- On time payment of EMI and bills
- Optimal usage of credit
- Stable financial behavior
Certain online lending platforms, such as fintech platforms that are regulated, also check the credit score of the borrower to decide whether to lend money or not. A high credit score is also beneficial for such platforms as it will enable them to provide a smooth experience to the borrowers without any delays.
Factors That Are Easy To Manage Credit Score:
Scoring a 750 credit score is a great achievement, but it is also important to maintain it. Here are some important practices that help in this:
- Pay Bills on Time
Payment history has the largest influence on your credit score. One missed EMI or credit card bill payment can negatively affect your credit score.
- Use Less Than 30% of the Credit Limit
It is always advisable to use less than 30% of the available credit limit. Using more than that can lead to a negative impression of your financial management.
- Avoid Multiple Applications
Applying for multiple loans or credit cards in a short period of time can negatively affect your credit score due to multiple credit inquiries.
- Hold on to Old Accounts
Old accounts help in increasing the age of your credit history, which is an important factor in maintaining a good credit score.
Myths About 750 Credit Score:
Myth 1: A 750 score guarantees loans
It certainly helps, but income, employment, and existing debt are also factors.
Myth 2: Now that you have a 750 score, you don’t have to check your credit
Checking your credit will allow you to spot errors before your score decreases.
Myth 3: Having a 750 score ensures you get the lowest interest rates all the time.
Having a 750 credit score is an advantage when it comes to getting low interest rates, but banks also consider other factors such as the loan amount, tenure of repayment, and overall financial stability before arriving at the final interest rate.
Myth 4: A 750 credit score will never fall
A credit score is not a fixed thing. Even if you have a 750 credit score, factors such as missed EMIs, high credit utilization, and applying for loans repeatedly can still bring your credit score down.
Conclusion:
Is a 750 credit score good or bad in India? The answer is simple: it is very good. It indicates prudent financial practices and paves the way for multiple loan opportunities. The advantages of having a 750 credit score are improved loan approvals, reduced interest rates, faster processing, and access to the best credit facilities.
To retain good credit habits and take them to the next level, you need to be consistent with your financial practices. A good credit score is not just a number; it is a stepping stone towards making informed financial choices.
