How do credit score ratings impact loan terms?

Credit score ratings play a pivotal role in determining your creditworthiness and your ability to access financial products like personal loans from Shriram Finance.

Here is an overview of credit score ratings:

Excellent (above 750)

• A strong credit history and responsible credit management.
• Likely to qualify for loans with the best terms and interest rates.

Good (700 - 749)

• Indicates a solid credit history with timely payments.
• Eligible for favourable loan terms, although not the absolute best.

Fair (650 - 699)

• Credit history with some issues, like occasional late payments.
• May still qualify for loans but with less favourable terms.

Poor (600 - 649)

• Reflects a credit history with notable problems, such as defaults or collections.
• May face challenges in loan approval and will be charged with higher interest rates.

Very Poor (Below 600)

• Signifies credit issues, including bankruptcies or serious delinquencies.
• Eligibility for loans, like personal loans from Shriram Finance, is limited, and interest rates are high.

Understanding your credit score rating is crucial for making informed financial decisions. If your rating falls in the lower categories, consider taking steps to improve it over time, potentially increasing your eligibility and terms for personal loans and other financial products.