Credit Score: The New Deciding Factor for Loan Approvals, Not Just Salary

• The lending landscape has transformed, with credit score now a crucial factor alongside salary for loan approvals.
• Algorithm-based underwriting, driven by RBI's retail credit growth, prioritizes credit repayment history, utilization, and account age.
• A strong credit profile leads to lower interest rates, quicker approvals, and higher loan amounts, as stated by experts like Adil Shetty (BankBazaar.com CEO) and Vinay Singh (Olive CPO).
• Timely loan and EMI payments, judicious credit card use, and job stability improve credit scores, while missed payments can lead to a 'poor category' score.
• Financial discipline in credit management is now essential for securing favorable loan terms and is considered a long-term financial asset.

Why It Matters: Credit score is now paramount for loan approvals, influencing interest rates, amounts, and approval speed.