- By Aditya Pratap Singh
- Fri, 15 May 2026 05:58 PM (IST)
- Source:JND
Credit score is the most common word that we hear in the world of banking and finance. This is the d-factor in whether a bank or financial institution would approve a loan amount to a person or not. Most importantly, the score also plays a crucial role in deciding the interest rate on the loan amount. While most people only think about their credit score when applying for a mortgage or a new car, their financial reputation is being built every single day.
The three-digit credit score, which varies from 300 to 900, reflects the creditworthiness of an individual, tracking their credit history. Meanwhile, an individual without a credit history should always think about solidifying their credit or CIBIL score, as it is crucial for long-term financial health.
"For many individuals, a credit score becomes relevant only when there is an immediate need for capital. Until that moment, it remains an abstract figure, often overlooked. That is where the complication begins. A credit score isn't just a last-minute check; it's a continuous record of your financial discipline, shaping the opportunities available when you need them most," said Manish Shara, CEO and Co-founder of ZET.
A Good Credit Score Takes Time
A credit score is cultivated over time. Consistent repayments, responsible credit utilisation, and a lengthy credit history contribute to a robust profile. These are not isolated actions but reflections of ongoing financial behaviour. Over time, this pattern becomes the benchmark by which lenders evaluate your fiscal reliability.
This foresight becomes vital when urgent financial needs arise. Whether it is a medical emergency, a business opportunity, or a temporary cash flow gap, individuals with a strong credit profile typically benefit from expedited approvals.
According to Shara, those with limited or stagnant credit histories may face significant delays or more rigorous scrutiny during critical moments. The advantage lies not just in the approval itself, but in the seamlessness of the experience.
Focus On Creating Credit History
The influence of a credit score is most evident in the cost of borrowing. Lenders utilise this metric to quantify risk, which directly dictates interest rates and loan conditions. A superior score generally unlocks more favourable terms. Even a marginal reduction in interest rates can lead to substantial savings over the life of a loan.
Importantly, a credit score cannot be built at short notice. It reflects past behaviour over a period of time. Individuals who delay engaging with credit often find themselves with little or no track record when they need it. In such cases, the absence of history can work against them.
“One way to address this is through secured credit cards, which are backed by a fixed deposit and allow individuals to start building or rebuilding their credit profile in a controlled manner. A secured credit card does not require any existing credit history or income proof,” ZET co-founder highlighted.
These products help build a strong credit score, which in turn helps improve access to credit at favourable terms. Building a score gradually, through consistent and responsible usage, ensures that options remain open in the future.
Credit Scores Are Essential For Financial Integrity
A credit score is also being used more widely as a measure of financial reliability. While its primary role remains in lending, its growing use across financial products reinforces an important point: it is not a one-time requirement, but an ongoing record that is assessed whenever access to credit is needed. Maintaining that record requires consistency.
"A credit score, therefore, is not only relevant at the time of taking a loan. It reflects financial readiness. Maintaining it consistently ensures that when the need arises, access to credit is smoother, faster, and more predictable," Shara highlighted.