A credit score is a three-digit number, typically ranging from 300 to 900 in India, that summarises your creditworthiness — essentially, how reliably you've borrowed and repaid money in the past. It's calculated by credit bureaus like CIBIL based on your history of loan and credit card repayments, outstanding debts, and how you've used credit over time.
A higher credit score, generally above 750, signals to lenders that you're a low-risk borrower, which typically translates into faster loan approvals and access to better (lower) interest rates. A lower score can mean loan rejections or being offered loans only at higher interest rates to compensate the lender for perceived risk. Paying EMIs and credit card bills on time, and not maxing out your credit limits, are the most effective ways to build and maintain a healthy credit score over time.