Is credit score of 740 good?
After getting my first unsecured card, when I checked my credit score, it was 741. At that time, I also thought the same.
After conducting some research and speaking with my uncle, a banker, I knew that a credit score of 740 is actually a good score in India.
Most lenders consider credit scores above 700 as reliable, but once you reach 750, it becomes even more beneficial for loans and credit cards.
With a 740 credit score, you can get faster approvals and much better interest rates compared to someone with just 650 or 680.
Here are some tips for you to maintain a good credit score:
- Always pay EMIs and credit card bills before the due date.
- Keep your credit utilisation low, ideally below 30%.
- Regularly check your credit report for errors and dispute anything inaccurate.
- Avoid applying for multiple new loans or credit cards within a short period.
The higher your score, the more negotiating power you have with banks. For example, cheaper personal loan offers and credit cards with higher limits and premium perks.
In short, if you already have a 740 credit score, enjoy the benefits. But do not relax too much, especially if you miss due payments or overspend, as it can pull your score down quickly.