753 Credit Score: Is it Good or Bad?

A credit score is a key indicator of your financial trustworthiness, impacting your ability to access loans, credit cards, and other financial products. A score of 753 is categorised as good in most scoring models. This means you have managed credit responsibly, made timely repayments, and maintained a healthy financial profile.

 

In India, a 753 score typically places you among borrowers with reduced credit risk. While it is a strong score, there is room for further improvement, which can unlock even more favourable credit terms. Understanding the impact of this score can help you take strategic steps toward achieving your financial aspirations.

Credit bureaus in India use slightly varied scoring methods. Here’s how a 753 credit score might be interpreted across major credit agencies:

A credit score of 753 is favourable across all bureaus, denoting financial reliability. However, note that lenders may evaluate additional factors such as your income, job stability, and repayment history before approving credit.

Having a credit score of 753 provides various benefits, enabling you to access better financial opportunities:

Better Loan Eligibility

With a 753 CIBIL score, lenders are likely to approve your loan applications with fewer conditions. This includes personal loans, auto loans, and even mortgages.

Low Interest Rates

A good credit score signals lower risk for lenders, often resulting in lower interest rates, reducing your overall borrowing costs.

Access to High-value Loans

A strong credit profile increases your chances of securing higher loan amounts, making it easier to fund major life goals such as home ownership or higher education.

Improved Eligibility for Credit Cards

You may qualify for credit cards offering high rewards, travel privileges, and exclusive benefits, such as complimentary airport lounge access and cashback deals.

Favourable Insurance Premiums

Certain insurance providers consider credit scores when determining premium amounts. A 753 CIBIL score could help you qualify for lower premiums.

Financial Stability

A good credit score enables easier access to emergency funds, reducing financial stress during unexpected situations.

Negotiation Power

Borrowers with good credit can often negotiate better loan terms, such as reduced fees or extended repayment periods, giving you more control over your finances.

While a score of 753 is commendable, maintaining it requires ongoing effort. Here are some steps you can take to preserve or improve your score:

Ensure Timely Payments

Your payment history is a critical factor in determining your credit score. Set up reminders or automate payments to ensure you never miss a due date.

Manage Credit Utilisation Wisely

Keep your credit utilisation ratio below 30% to reflect responsible credit usage. For example, if your credit limit is ₹1 Lakh, aim to use ₹30,000 or less.

Avoid Unnecessary Credit Applications

Each credit application results in a hard inquiry, which can temporarily lower your score. Apply for credit only when absolutely necessary.

Review Your Credit Report

Regularly check your credit report to identify inaccuracies or fraudulent activities. Reporting errors can help you safeguard your score.

Maintain Older Credit Accounts

The age of your credit history contributes to your score. Thus, keeping your older accounts open can positively impact your score, provided they have no outstanding dues.

Diversify Your Credit Portfolio

A mix of secured (home loans) and unsecured credit (credit cards) demonstrates financial responsibility and improves your creditworthiness.

Gradually Pay off Your Existing Debt

High outstanding debt can negatively affect your score. Create a repayment strategy to systematically reduce your liabilities.

Build a Financial Safety Net

Consider creating an emergency fund to avoid over-reliance on credit during unexpected situations, helping you maintain financial stability.

A credit score of 753 is an excellent foundation for accessing financial benefits and achieving your goals. By staying disciplined with your repayments, monitoring your credit health, and optimising your credit utilisation, you can maintain or improve your score over time. With a strong credit profile, you’ll not only enjoy better financial terms but also build a reputation for being a responsible borrower, paving the way for long-term financial success.