New Delhi, June 3 -- As financial institutions focus on tightening credit norms amidst fluctuating interest rate regimes, clearly understanding credit scores and the significance of a strong credit profile has now become essential for individuals seeking personal loans, credit cards or other credit instruments.

To put it simply, a credit score is a three digit number that reflects a borrower's creditworthiness and it is increasingly becoming a decisive factor in the lending process in the country.

As per the Reserve Bank of India (RBI) credit information organisations such as CIBIL, Experian, CRIF High Mark and Equifax assign scores in the range of 300 to 900. A score of 750 or 750+ is considered as a fairly good credit score. These sco...