Are You know What is Considered as a Bad Credit Score?

Are You know What is Considered as a Bad Credit Score?

Your credit score plays an important role in the financial aspect of your life. It acts as a deciding factor when you are planning to either apply for a loan or get a credit card. Lenders like banks and non-banking finance companies (NBFCs) consider your credit report and credit score, before sanctioning your loan or credit card application. Your credit score helps lenders determine your creditworthiness and measure your ability to repay the borrowed sum.

What is a Bad Credit Score?

A credit score is a measure of your creditworthiness which is presented in a numerical format. It ranges between 300-900, 300 being the lowest and 900 being the highest. You should always work towards maintaining a credit score closer to 900. Majority of banks and NBFCs consider a credit score of 750 and above as ideal. Let’s take a look at different credit score range:

A credit score in the range of 300-550 is considered as bad. If you have a credit score that falls in this range, you will need to take serious measures to improve it. Having a bad credit score will not make you eligible to avail a loan or get a credit card.

What are the Factors that Affect your Credit Score?

There are several factors that can hamper your credit score and decrease your chances of getting a loan or credit card. Let’s take a look at some of the main factors that can bring your credit score down:

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