751 Credit Score: Is It Good or Bad?

Your credit score is an important metric used to check your repayment capabilities and credit behaviour. It influences loan approvals, the interest rates offered, and access to premium credit products. In India, a credit score of 751 is typically considered to be good and reflects good creditworthiness.

 

However, there’s always room to improve. A credit score of 751 indicates a solid foundation, but understanding its implications and actively working to maintain or enhance it is also important.

Credit scores in India are calculated by multiple credit bureaus, each using unique scoring models. A 751 credit score may fall into slightly different categories depending on the bureau:

Having a 751 CIBIL score offers several advantages:

• Lower Interest Rates: Lenders consider individuals with a 751 CIBIL score as low-risk borrowers. They often offer lower interest rates to such borrowers.

• Higher Loan Approval Chances: With a solid score, your chances of loan approval—especially for higher amounts—significantly increase

• Access to Credit Cards: A good score qualifies you for credit cards which come with travel rewards, cashback, and other perks

• Favourable Loan Terms: A high credit score gives you the leverage to negotiate better loan conditions, such as flexible repayment terms

• Emergency Financial Support: A strong credit score ensures quick access to personal loans or credit lines for unforeseen financial needs

• Lower Insurance Premiums: Insurers often provide better rates to individuals with good credit scores, as they are perceived as lower-risk customers

A credit score of 751 is a strong starting point, but maintaining or boosting it can offer greater financial flexibility. Here’s how:

Make Timely Payments

Ensure that all loan EMIs and credit card bills are paid on time. Payment history is one of the most significant factors affecting your credit score.

Maintain a Low Credit Utilisation Ratio

Keep your credit card usage below 30% of your total limit. This demonstrates prudent credit management.

Avoid Excessive Credit Applications

Multiple hard inquiries may temporarily lower your score. So, apply for a new credit only when required.

Check Your Credit Report Regularly

Monitor your credit report for inaccuracies or errors. Dispute discrepancies immediately to safeguard your score.

Diversify Your Credit Portfolio

Include a mix of secured (e.g., home loans) and unsecured (e.g., personal loans) credit types in your profile to demonstrate responsible credit usage.

Maintain Old Accounts

Older accounts with positive payment histories contribute positively to your credit age, a factor that can improve your score over time.

Avoid Over-borrowing

Keep your debt-to-income ratio low to show lenders that you’re not over-leveraged.