If you are a farmer or a business owner looking to buy a tractor, you may need a loan to make the purchase. But did you know that your credit score plays a big role in how much your loan will cost? A credit score is a number that shows how good you are at handling borrowed money. Lenders check this score before approving your loan. A high credit score can help you get better loan terms, while a low score can make borrowing more expensive.

What is a Credit Score?

A credit score is a three-digit number, usually ranging from 300 to 900, that represents your creditworthiness. In India, credit scores are provided by agencies like CIBIL, Experian, Equifax, and CRIF High Mark. A higher score means you have a good history of repaying loans and credit card bills on time.

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