796 Credit Score – Is It Good or Bad?

A credit score of 796 generally suggests responsible credit behaviour and may make you appear reliable to lenders. It could improve your chances of getting approved for credit cards, personal loans, or home loans, sometimes with better interest rates and terms. This score may also support your financial plans by offering more flexibility in borrowing options.

Credit score ranges differ across bureaus. A score of 796 is generally considered ‘Excellent’ or ‘Very Good’, depending on the bureau. Here's how major credit bureaus in India typically interpret a 796 score:

Lenders could see a credit score of 796 as a sign of financial responsibility. It might reflect a history of timely payments and smart credit management. With such a score, you could be considered as a dependable borrower, making it more likely for lenders to offer you better loan terms, including lower interest rates, higher credit limits, and quicker approval.

 

In short, a score of 796 could increase your chances of loan approval and boost your ability to negotiate more favourable borrowing conditions.

A credit score of 796 unlocks access to a range of financial products with more favourable terms. Here are some products you may qualify for with this score:

Home Loans at Favourable Interest Rates

A 796 credit score could put you in an excellent position to apply for home loans with attractive interest rates, higher loan amounts, and flexible repayment options. Lenders are likely to offer you lower rates and faster approval, making it easier to buy or refinance your home.

Pre-approved Personal Loans

A 796 credit score could qualify you for pre-approved personal loans, which often require minimal documentation and offer quick disbursal. These loans could assist with urgent financial needs such as medical emergencies, planned expenses, or consolidating debt.

Bike Loans

With a credit score of 796, you may be eligible for two-wheeler loans with low-interest rates, flexible tenures, and minimal down payments. These loans, typically secured against the vehicle, make the application process quicker and easier.

Business Loans for MSMEs and Startups

For business owners, a 796 credit score boosts your chances of qualifying for MSME and startup loans. You may access working capital loans, expansion funds, or equipment financing, all with more favourable terms.

Professional Loans for Doctors, CAs, and Architects

If you're a self-employed professional, a 796 credit score could enhance your chances of qualifying for professional loans designed for doctors, chartered accountants, architects, and others. These loans typically offer flexible repayment terms and may be used to establish or grow your practice.

Top-tier Credit Cards

A 796 credit score could also help you qualify for premium credit cards, offering high credit limits, low-interest rates, rewarding programs, and exclusive benefits like airport lounge access and concierge services.

Maintaining an excellent credit score like 796 requires discipline and consistency. Here are some tips to help you keep it in top shape:

Pay Bills and EMIs on Time

You could pay your bills, loan EMIs, and credit card payments on time to prevent any negative impact on your score.

Keep Credit Utilisation Low

You could try to keep your credit card usage below 30% of your available limit. High usage may indicate financial strain and lower your score.

Check Your Credit Report Regularly

Check your credit report regularly for errors or discrepancies and dispute any inaccuracies as soon as possible.

Avoid Unnecessary Credit Applications

Avoid applying for multiple credit cards or loans in a short span, as it could negatively impact your score. Apply for credit only when essential.

Maintain a Healthy Credit Mix

A well-balanced mix of secured and unsecured credit accounts could demonstrate your ability to manage various types of credit responsibly.

To increase your credit score from 796 to 850 or maintain your current score, consider these additional steps:

• Request Higher Credit Limits: Requesting higher credit limits while keeping your usage low could lower your credit utilisation ratio, potentially boosting your score.
  

• Always Pay in Full: Paying your bills promptly and entirely might help you avoid interest charges while also showcasing responsible credit management.
  

• Keep Your Oldest Credit Accounts Open: The length of your credit history could play a key role in your credit score. Keeping older accounts open and active may help strengthen your credit profile.
  

• Diversify Your Credit: Maintain a variety of credit accounts, such as credit cards, home loans, and personal loans, these may help to demonstrate your ability to manage different types of credit.

If your score drops below 796, taking prompt action to improve it might be crucial. Here are some steps you can follow:

• Review Your Credit Report: Check your report for any errors or discrepancies. If you find any, dispute them with the credit bureau.
  

• Pay Outstanding Bills: Late payments may impact your credit score. Paying off any outstanding dues as soon as possible could help reduce their effect.
  

• Reduce Your Credit Utilisation: Try to use less than 30% of your available credit, as this may help improve your score.

• Limit Loan Applications: Each loan application can trigger a hard inquiry on your credit report, which may lower your score. To minimise the impact, try to space out your applications over time.

 

A credit score of 796 shows that you've managed credit well, and it may help you access better credit options. Responsible usage could help you keep or improve this score.