What is Credit Score and Why it is Important.
                     WHAT IS 
CREDIT SCORE 
AND WHY IT IS 
IMPORTANT?
WHAT IS CREDIT SCORE?
• A credit score is a three-digit number 
that shows your creditworthiness. 
• It is the first thing that lenders check 
when you apply for a loan or a credit 
card. 
• It gives them the idea of whether you 
can repay the borrowed sum on time or 
not. 
Source: indialends.com
HOW IS A CREDIT SCORE CALCULATED?
• Each credit bureau has its own credit 
scoring model which they use to 
compute your credit score. 
• Your score may be different, but the 
factors that each bureau takes into 
consideration are the same.
Source: indialends.com
WHAT DOES YOUR CREDIT SCORE HELP YOU 
TO KNOW?
• Helps you to know your current credit 
status
• When you check your credit score and 
report, it lets you know where you stand 
and what you need to focus on. 
• Helps you to get the best offers on 
loans and credit cards
• With a good credit score, borrowers are 
also eligible to get best offers on loans 
and credit cards.
Source: indialends.com
WHY CREDIT SCORE IS IMPORTANT?
MAKES YOU ELIGIBLE FOR LOANS
• A high credit score gives you the ticket 
to be eligible for getting loans and 
credit cards. 
• If you have a good credit score, it 
suggests that you have been repaying 
your debt and are experienced in 
handling credit. 
Source: bankbazaar.com
LOWER RATE OF INTEREST
• One of the benefits of having a healthy 
credit score is that banks might offer 
your loans at a lower interest rate. 
• Considering your repayment history, 
there is a high possibility that you will 
get discounts on the interest rate for 
loans.
Source: bankbazaar.com
HIGHER CREDIT CARD LIMITS
• A high credit score will not only get you 
a lower rate of interest on your credit 
cards and loans but will also help you in 
getting a higher loan amount. 
Source: bankbazaar.com
QUICKER LOAN APPROVALS
• Several lenders offer pre-approved loan 
to consumers who have a long credit 
history and a high credit score. 
• Quicker loan approvals by banks is one 
of the biggest benefits of a high credit 
score. 
Source: bankbazaar.com
ADDS VALUE TO A VISA APPLICATION
• If you have a high credit score, it adds 
good weightage to your visa 
application. 
• Your income tax records are taken into 
consideration by most countries like the 
United States or the UK when you apply 
for a visa. 
Source: bankbazaar.com
ACCESS TO THE BEST REWARDING CREDIT 
CARDS
• With a good credit score, you are also 
eligible to get access to the most 
rewarding credit cards in the market, 
including those that offer the lowest 
interest rates and the best rewards, 
such as cash cashback, travel points, 
and other benefits.
Source: indialends.com