Most people treat their credit score like a report card they check only when something goes wrong. But once your score crosses 750, it starts working for you in small but very real ways. You may not notice it immediately, yet over time it can quietly reduce what you pay on your credit card, month after month.
What a 750 plus score really signals to banks
A credit score above 750 tells lenders one simple story. You borrow responsibly and you pay back on time. For banks, this makes you a low risk customer. Low risk customers are rewarded with better terms because the chances of default are lower. This is why two people with similar incomes can get very different credit card offers purely based on their scores.
Lower interest rates make a big difference
One of the biggest cost savings comes from interest rates. With a strong score, banks are more likely to offer you cards with lower interest charges. Even a difference of a few percent matters. If you carry a balance of Rs. 1 lakh, paying interest at 30 percent versus 36 percent can mean thousands of rupees saved over a year. Over several years, that gap becomes even wider.
Better cards with fewer fees
This means that if you have a higher score, you have the opportunity to be considered for exclusive credit card products with reduced or zero annual charges. This is even if the issuer waives the annual fee if you meet the predefined spending requirement. This is unlike the individual with a poor credit score who may be eligible for beginner credit card products with higher charges.
Higher limits help you avoid hidden penalties
With a good credit rating, the banks will easily provide you with a higher credit limit. This will also help lower your credit card usage ratio. This ratio represents the percentage of the limit you have been using. Keeping it low will help you avoid any issues related to the penalty rate of interest and also safeguard your good credit ratings.
Stronger Negotiating Power
Getting a score of 750 plus gives you negotiating power. You can demand a reduced rate of interest, a refund of a fee, and even an upgrade of your card. Many people do not know that such is possible, and banks are much more open when you are a good payer.
Access to balance transfer and loan offers
Good credit scores will also open the door for you to benefit from balance transfer offers and instantaneous credit card loans at more favourable rates. This can help you deal with debts more affordably. A poor credit score holder may also avail of these benefits, but at a higher expense.
In the end, a high credit score does not just make approvals easier. It reduces friction, lowers costs, and gives you choices. A 750 plus score is less about status and more about financial breathing room.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
