At first glance, a credit score feels like a final verdict. If two people have the same credit score, it seems logical that banks should treat them the same way. But in reality, that’s rarely how loan approvals work.
Many borrowers are surprised when they see completely different loan offers—different interest rates, loan amounts, or even rejections—despite having the same credit score. This often leads to confusion and mistrust in the lending system. The truth is, a credit score is only the starting point, not the full story.
In this blog, we will break down why two people with the same credit score can receive different loan offers, what factors lenders look at beyond the score, and how you can improve your chances of getting better terms.
Understanding the Role of a Credit Score in Loan Decisions
Before diving into the differences, it’s important to understand what a credit score actually represents.
A credit score is a numerical summary of your credit behaviour. It reflects how responsibly you have handled credit in the past—such as loan repayments, credit card usage, and defaults.
However, lenders never rely only on this number.
What a Credit Score Tells Lenders
- Your past repayment discipline
- Whether you have defaulted or delayed payments
- How much credit you have used compared to what was available
- How frequently you apply for credit
What a Credit Score Does Not Tell
- Your current income
- Your job stability
- Your monthly cash flow
- Your existing EMI burden
- The type of loans you hold
RupeeQ Tip:
Think of your credit score as an entry ticket. It helps you enter the evaluation process, but it does not decide the final outcome on its own.
Factor 1: Income Level and Income Stability
One of the biggest reasons loan offers differ is income.
Two people may both have a credit score of 750, but their incomes could be very different—and lenders care deeply about repayment capacity.
Example:
| Person | Monthly Income | Credit Score |
| Person A | ₹30,000 | 750 |
| Person B | ₹1,00,000 | 750 |
Even with the same credit score:
- Person B is likely to get a higher loan amount
- Person B may get a lower interest rate
- Person A may face tighter eligibility limits
Lenders use income to assess:
- Whether you can afford the EMI
- How much buffer you have after expenses
- Risk of future default
RupeeQ Tip:
A good credit score works best when supported by stable income. Always check loan offers that align with your income band, not just your score.
Factor 2: Existing Loan Burden and EMI-to-Income Ratio
Another critical factor is how much of your income is already committed to EMIs.
EMI-to-Income Ratio (also called FOIR)
This shows what percentage of your monthly income goes towards repayments.
Example Calculation:
- Monthly income: ₹60,000
- Existing EMIs: ₹24,000
EMI-to-Income Ratio = 40%
Now compare two borrowers:
| Borrower | Income | Existing EMIs | Credit Score |
| Borrower X | ₹60,000 | ₹10,000 | 760 |
| Borrower Y | ₹60,000 | ₹30,000 | 760 |
Borrower X appears far less risky, even with the same credit score.
Lenders prefer borrowers with:
- Lower existing EMI burden
- More disposable income
RupeeQ Tip:
If your EMIs are eating up a large portion of your income, your loan terms may suffer—even with a strong credit score.
Factor 3: Credit Mix – Type of Loans You Have
Credit score alone doesn’t reveal what kind of credit you’ve used. Lenders look at your credit mix.
Good Credit Mix Includes:
- Secured loans (home loan, car loan)
- Unsecured loans (personal loan, credit cards)
- A healthy balance between the two
Example:
| Borrower | Credit Profile | Credit Score |
| Borrower A | Only credit cards | 740 |
| Borrower B | Home loan + credit card | 740 |
Borrower B often gets better loan offers because:
- Secured loans show long-term repayment discipline
- They indicate lower risk behaviour
RupeeQ Tip:
A balanced credit profile improves lender confidence, even if the credit score is identical.
Factor 4: Credit Utilisation Behaviour
Credit utilisation refers to how much of your available credit limit you are using.
Why It Matters
High utilisation indicates dependency on credit and possible cash-flow stress.
Example:
- Credit card limit: ₹1,00,000
- Utilisation:
- Person A: ₹20,000 (20%)
- Person B: ₹80,000 (80%)
Even if both have a credit score of 730:
- Person A appears financially disciplined
- Person B appears credit-hungry
This difference affects:
- Interest rates
- Loan amount approvals
- Risk-based pricing
RupeeQ Tip:
Keeping credit utilisation below 30–40% improves not just your score but also how lenders interpret your profile.
Factor 5: Employment Type and Job Stability
Employment profile plays a strong role in loan decisions.
Lenders Prefer:
- Salaried individuals with stable employment
- Professionals with predictable income
- Long tenure in the same organisation
Example:
| Borrower | Employment | Credit Score |
| Borrower M | Salaried, 5 years in same company | 750 |
| Borrower N | Freelance, irregular income | 750 |
Borrower M is likely to get:
- Faster approvals
- Lower interest rates
- Higher eligibility
This does not mean freelancers are rejected—but they may face:
- Higher documentation
- Stricter terms
- Higher rates
Factor 6: Recent Credit Enquiries and Loan Applications
Two people may share the same credit score today, but their recent behaviour could be very different.
Example:
| Borrower | Recent Enquiries (3 months) | Credit Score |
| Borrower P | 1 enquiry | 740 |
| Borrower Q | 7 enquiries | 740 |
Multiple enquiries signal:
- Credit hunger
- Financial stress
- Higher probability of default
Lenders penalise this behaviour through:
- Higher interest rates
- Lower loan amounts
- Rejections despite same score
RupeeQ Tip:
Avoid applying to multiple lenders blindly. Use platforms that help you explore suitable offers with minimal impact on your credit profile.
Factor 7: Lender-Specific Risk Policies
Every bank and NBFC follows its own internal risk model.
What This Means
- One lender may prioritise income
- Another may prioritise credit history
- Some prefer salaried borrowers
- Some are flexible with self-employed profiles
So, two borrowers with the same credit score can:
- Be approved by different lenders
- Get different interest rates
- Receive different loan tenures
This is why loan offers are never uniform across institutions.
How RupeeQ Helps Bridge This Gap
RupeeQ does not look at your credit score in isolation. It helps you understand why your loan offer looks the way it does by analysing your broader credit profile.
Through smarter evaluation of:
- Income
- Active loans
- Utilisation
- Credit behaviour
RupeeQ helps match you with lenders who are more likely to offer favourable terms based on your full profile, not just a number.
Key Takeaways: Why Same Credit Score ≠Same Loan Offer
- Credit score is just the starting point
- Income and EMI burden matter heavily
- Credit behaviour matters more than credit history alone
- Lenders assess risk holistically
- Different lenders = different policies
Understanding this helps borrowers set realistic expectations and plan their borrowing decisions better.
Frequently Asked Questions (FAQs)
1. Can two people with the same credit score get different interest rates?
Yes. Interest rates depend on income, loan burden, employment type, and lender risk policies, not just the credit score.
2. Does a higher income guarantee a better loan offer?
Not always. High income with high EMIs or poor credit behaviour can still result in weaker offers.
3. Why was my loan rejected despite a good credit score?
Possible reasons include high EMI burden, multiple recent enquiries, unstable income, or lender-specific eligibility criteria.
4. Does checking loan offers affect my credit score?
Exploring suitable offers through the right channels minimises unnecessary credit enquiries.
5. How can I improve my loan offers without changing my credit score?
Reduce EMIs, lower credit utilisation, avoid frequent applications, and maintain stable income patterns.
