In India a credit score is an extremely important indicator of an individual’s financial health. It influences personal loan approvals, interest rates, credit card eligibility, future loan approvals, applicable interest rates and tenure period. As of May 2025, a credit score below 650 is generally considered poor.
It has the potential to limit access to favourable financial products such as easier interest rate loans, premium credit cards along with other borrower friendly financial opportunities.
The Reserve Bank of India (RBI) has emphasised the importance of both financial literacy and credit awareness through numerous press releases and directions. To further facilitate the same individuals are entitled to a free credit report annually.
This particular report includes the complete details of inquiries made by credit institutions while considering new credit facilities. This initiative aims to foster transparency and empower credit card users to manage their credit profiles efficiently.
On the issue of low credit scores, Siddarth Jain, CFO at MinEmi said that, “A low credit score doesn’t always mean financial irresponsibility. Many borrowers fall into lower score brackets due to temporary disruptions like missed alerts, job loss, or post-pandemic recovery and not long-term defaults. The key is to identify the reason, stay consistent with repayments, and avoid multiple new credit inquiries while rebuilding the profile.”
Therefore, keeping the above points in mind, to boost your credit score you can consider following the below given steps diligently.
Therefore, once you clearly understand the concept of a bad credit score i.e., a score that makes borrowing complicated and can result in higher interest rates, more delays and stipulations in loan and credit facilities. It is only then that you can work towards improving it following well established rules and principles as discussed above in a diligent manner.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.