750 is considered to be a great CIBIL score for most loan products. Read ahead to know more about credit scores.
CIBIL score of 750 and above is considered a good score. But instead of just finding out if 750 is a good CIBIL score, check out this table below which shows the range of CIBIL scores and what they signify -
| CIBIL Score Range | Creditworthiness |
|---|---|
|
750 - 900 |
Excellent |
|
700 - 749 |
Good |
|
650 - 699 |
Fair |
|
600 - 649 |
Needs Improvement |
|
Below 600 |
Immediate Action Needed |
It is to be noted that what is considered a good CIBIL score will totally depend on the lender. Often someone with a credit score of 600 or above may easily get a loan, if they match the other criteria for the loan.
Learn More About: 7 Ways To Increase Your CIBIL Score From 600 to 750
In case you are new to credit scores and CIBIL scores, read on to understand what these terms mean.
Each and every lender checks your credit score before they give you a loan. But have you ever wondered what a credit score is?
Even though the terms ‘credit score’ and CIBIL score are often used interchangeably, they are not the same. The credit score is a 3 digit number ranging from 300 to 900 that shows the credit behavior of a person.
The higher this score, the more the person’s creditworthiness.
Credit score is a generic term. There are many companies that calculate your credit score like CIBIL, Experian, Equifax, etc. There might be slight differences between the calculations of each of these organizations.
The CIBIL stands for Credit Information Bureau India Limited, and it is the most commonly used credit rating in India. This bureau has the information about all credits taken by you, and financial transactions made to repay the credit.
As this is the most trustworthy and popular credit score used by Indian lenders, your CIBIL score is often synonymous with your credit score.
There is no one path you can take to achieve an exceptional credit score, but there are certain crucial variables to consider as you work to build and maintain it.
Even if you have excellent credit, it's a good idea to grasp these credit criteria, especially if you're looking for a new loan or want to improve your score.
Your credit usage rate is derived by calculating the amount of credit you use by the total amount of credit available to you. You should strive to maintain this around 30%, but generally, the lower your usage rate, the better.
Having a large credit limit and keeping credit card balances low are two methods to improve your credit utilisation. If you need to reduce your credit utilisation rapidly, you can ask your credit card issuer to increase your credit limit, but be aware that this may result in a hard inquiry.
Your payment history is an essential factor in your credit health. A single late payment can have a significant influence on your score.
Whether you've missed a due date, it's worth calling your credit card provider to see whether the late payment will be removed, especially if it hasn't happened previously.
Another aspect that influences your credit ratings is the age of your credit history, or how long your active accounts have been open. This is calculated from the first-ever credit you took.
Canceling a credit card might affect the age of your credit history, especially if you've had it for a long time, so consider the potential impact when considering whether to close a card.
One more way to demonstrate your credit history is to show lenders that you can handle multiple types of credit. This could include credit cards, secured loans using gold, property, or unsecured loans.
Having a good credit score proves that you have good credit behavior. It has multiple advantages -
Shows that you are a dependable and responsible borrower
Proves that you have borrowed and repaid loans diligently in the past
Easier for you to get a loan
Chances of getting or negotiating lower interest rates
Chances of getting a longer tenure
Scope of getting higher loan amounts
If you consider CIBIL scores, 750 is an excellent score to have. You can easily get any loan at good interest rates.
But you need to maintain your excellent credit score, and here are some tips for it -
If you further want to improve your CIBIL score, you can follow these steps consistently. The higher your credit score, the easier negotiation power you will have while taking loans.
The credit score requirements depend on the type of loan you are seeking. You can get loans even if you have a credit score as low as 600. But having a credit score of 750 or above is enough for most kinds of loans.
No, your credit score cannot go down unless you make a credit related activity. It can be more than missing payments, even if you take a new loan or close a loan account, you may see a sudden temporary drop in your credit score.
If you pay your bills on time, not utilize your maximum credit, and maintain good financial health, you can improve your credit score to 800. Not taking too many credit cards, and taking loans only when you can pay them on time, are some other behaviors that can help.
Studies in India have shown that people have a growing awareness towards their credit scores in the past years. About 43% of Indians from the metro cities have a credit score of 750 or above.
A credit score of 750 is great to have, and almost all kinds of loans are open for you with this. You can freely approach any bank or lender for loans or credit cards.
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