Puisa Kotha Hunibo? Same Bank. Same Loan. Different Rates. Why?

Two friends applied for a car loan at the same bank. Same loan amount, same tenure. One was offered 9%. The other, 10.5%.

What made the difference? Just three digits: their credit score. That 1.5% gap might seem small. But over a five-year loan, it can translate into tens of thousands of rupees extra. One paid more, simply because nobody had told her this number existed, let alone that it mattered.

This is something most of us are never taught: not in school, not at home. Your credit score is being built whether you are aware of it or not. Ignoring it does not stop it from affecting your future loans, credit cards, or other financial opportunities. So, you might as well build it with purpose.

5 simple habits that can make a real difference:

Pay your bills on time: EMIs, credit card dues, any loan repayment. One missed payment can pull your score down faster than months of good behaviour can lift it.

Keep credit usage below 30%: Having a ₹1 lakh credit limit does not mean spending ₹1 lakh. Staying under ₹30,000 tells lenders you borrow with control, not out of necessity.

Do not apply for multiple loans at once: Every application triggers an enquiry on your credit record. Too many in a short period can signal financial stress and may affect your score.

Keep older accounts active: A longer credit history can work in your favour. That old credit card you rarely use? Think twice before closing it.

Check your credit report periodically: Errors happen. Catch them before a bank does.

Your credit score is being written right now, one habit at a time. The friend who got 9% didn’t get it by chance. She was aware and had simply started building earlier.

These are the conversations schools and colleges rarely make space for. At Moneybar, we’re building a space where people can learn from real stories, practical lessons, and discussions about how money actually works in our lives, especially here in Northeast India. Find us on the App Store and Google Play Store.

The original published column can be found at : Same Bank. Same Loan. Different Rates. Why?