795 Credit Score – Is It Good or Bad?

A credit score of 795 could indicate that you’ve handled credit well and might make you appear dependable to lenders. With this score, you might also qualify for various credit options, often on better terms. It may boost your financial credibility and could help you manage your financial goals more smoothly. Whether you're applying for a home loan, a credit card, or a personal loan, your 795 credit score increases your chances of approval, better terms, and lower interest rates.

Different credit bureaus have varying credit score ranges. A score of 795 falls in the 'Excellent' or 'Very Good' category depending on the credit bureau. Here's how a 795 score is interpreted across major bureaus in India:

Lenders consider a credit score of 795 as a mark of financial responsibility. This score indicates that you have a history of making timely payments and managing your credit wisely. With a score this high, you're viewed as a reliable borrower. Lenders are more likely to offer you favourable loan terms, such as lower interest rates, higher credit limits, and faster loan approval.

Essentially, a 795 score might not only improve your chances of loan approval but also enhances your negotiating power for better borrowing conditions.

A credit score of 795 opens up opportunities to access a variety of financial products with better terms. Here are a few products you could qualify for with this score:

Home Loans with Attractive Terms

With a 795 credit score, you're in a strong position to apply for home loans with competitive interest rates, larger loan amounts, and flexible repayment terms. Lenders are likely to offer you lower interest rates and quicker approval, helping you purchase or refinance your home more easily.

Pre-approved Personal Loans

With a credit score of 795, you may qualify for pre-approved personal loans that require minimal documentation and may be disbursed quickly.

These loans could help you meet immediate financial needs like medical emergencies, planned expenses, or debt consolidation.

Two-wheeler Loans

If you're looking to buy a two-wheeler, a high credit score like 795 could help you access bike loans with low-interest rates, flexible tenures, and low down payments. These loans are typically secured against the vehicle, making the application process faster and simpler.

Business Loans for MSMEs and Startups

For business owners, a score of 795 increases your eligibility for loans aimed at MSMEs and startups. With this score, you may qualify for working capital loans, expansion funds, or equipment financing, all with more favourable terms.

Professional Loans Tailored for Doctors, CAs, and Architects

If you're a self-employed professional, a 795 score could help you qualify for professional loans tailored to doctors, chartered accountants, architects, and other professionals. These loans often come with flexible repayment terms and may be used to set up or expand your practice.

Premium Credit Cards

A 795 credit score might also give you access to premium credit cards. Benefits can include high credit limits, low-interest rates, attractive rewards programs, and exclusive privileges such as airport lounge access and concierge services.

Maintaining an excellent credit score like 795 might require discipline and consistency. Here are some tips to help you maintain this score:

Make Timely Payments for Bills and EMIs

Ensure all your bills, loan EMIs, and credit card payments are made on time to avoid any negative impact on your score.

Keep Your Credit Utilisation Under Control

Try to keep your credit card usage below 30% of your available credit limit. High usage could signal financial strain and affect your score.

Regularly Monitor Your Credit Report

Regularly check your credit report to identify any discrepancies or errors. Dispute any incorrect entries promptly.

Avoid Applying for Credit Unless Necessary

Applying for multiple credit cards or loans in a short period might lower your score. Only apply for credit when necessary.

Maintain a Balanced Mix of Credit Types

A balanced mix of secured and unsecured credit accounts shows that you can manage different types of credit responsibly.

If you want to increase your credit score from 795 to 850 or simply want to maintain your current score, follow these additional steps:

• Ask for Higher Credit Limits: Seeking higher credit limits while maintaining low usage could help reduce your credit utilisation ratio, which may boost your score.
  

• Pay Your Bills in Full: Paying your bill amount in full and on time avoids interest charges and shows responsible credit management.
  

• Keep Your Longest-Standing Credit Accounts Active: Length of credit history is an important factor. Keep older accounts active to build a stronger credit profile.
  

• Diversify Your Credit Portfolio: Consider maintaining a mix of credit cards, home loans, and personal loans to show lenders that you can handle different types of credit.

If your score falls below 795, it’s important to act quickly to recover it. Here are some steps you may take:

• Check Your Credit Report Regularly: Check for any errors or inaccuracies. If you find any, you could dispute them with the credit bureau.
  

• Settle Any Unpaid Bills: Late payments could have a significant impact on your credit score. You could consider paying off any outstanding dues as soon as possible.
  

• Lower Your Credit Utilisation: Aim to use less than 30% of your available credit this might help to improve your score.
  

• Limit Loan Applications: Each hard inquiry from a loan application might affect your score. You could space out your applications to avoid multiple hard hits.

 

A 795 credit score is a mark of financial responsibility and opens up various opportunities for credit with favourable terms. By maintaining a disciplined approach to credit management, you could continue to enjoy these benefits and even work towards improving your score further.