Used only to calculate your potential savings, not stored anywhere
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On a personal loan, the gap between a Poor score (300–549) and an Excellent score (800+) is roughly 13 percentage points — 24% versus 10.85% per annum. On a ₹5 lakh loan over 3 years, that difference alone is well over ₹1 lakh in extra interest. Home loans have a smaller but still meaningful gap, typically 2.5 to 3 percentage points between the worst and best tiers.
Most lenders reserve their best rates for scores of 750 and above. Between 700 and 749 you'll usually still qualify for competitive rates, just not the absolute lowest. Below 700, expect to pay a noticeably higher rate, and below 650 many lenders either reject the application or price it steeply.
Yes — 700 is generally classed as a Good score and qualifies you for most loan products at reasonably competitive rates. It's not the top tier, so you may still be quoted 2 to 4 percentage points above what an 800+ applicant would see for the same loan, depending on the lender and loan type.
There's no fixed timeline since it depends on what's holding your score back, but a few months of on-time payments, low credit utilisation, and no new credit inquiries is typically enough to move up a tier. Jumping multiple tiers (say Fair to Very Good) usually takes 6 to 12 months of consistent good behaviour.
Yes. Personal loans are unsecured, so lenders price them more aggressively based on credit score — the gap between tiers is largest here. Home and car loans are secured against an asset, so the score still matters but the rate spread between tiers is narrower, since the lender has collateral to fall back on either way.