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A CIBIL score is a simple numerical representation of an individual’s credit management skills and, in turn, their creditworthiness and the ability to repay the credit advances made to them . CIBIL scores tend to stay within the range of 300-900 and depending upon what an aspiring borrower’s actual CIBIL score is, their application for any kind of loan or form of credit submitted by them will either be accepted or rejected. This article will touch upon what does an 800 CIBIL score mean and is 800 a good credit score, in addition to whether or not it does any favours for the applicant. Read on to know more.

Is 800 a Good CIBIL Score?

Yes, a CIBIL score of 800 is good. Basically, the higher an individual’s CIBIL score is, the better are their chances of acquiring a loan at lower interest rates. Additionally, if the credit score crosses the threshold of 800 points, that puts the borrower in a position of being able to negotiate loan terms and get a better offer in terms of interest rates and loan repayment tenures.. Thus, given that someone can receive a score of 900 at the most, a figure of 800 or more on the borrower’s credit report does mean that the borrower posses a excellent credit history. Scores in other ranges, on the other hand, tend to spell different things for the person whose name is on the report. What you will find below is a table that will help the reader understand what kind of meaning different CIBIL scores hold. Read on to know more.

Range of CIBIL score

The Assigned Grade

What Does it Mean?

750 - 900

The “Excellent” Grade

Eligible for low rates of interest and there is a high chance that the loan will get approved.

700 - 749

The “Good” Grade

Eligible for getting better interest rates

650 - 699

The “Fair” Grade

Approval of the credit is possible, but the options in terms of lenders willing to grant a loan become extremely limited.

600 - 649

The “Doubtful” Grade

The chances of approval of a loan/credit card application become extremely low, and when they do get credit, they have to pay extremely high rates of interest.

Below 600

The “Immediate Action Required”

Approval chances either fall to negligible or 0.

 

Read More About CIBIL Score Ranges

What are the Advantages of an 800 CIBIL Score?

  • An 800 CIBIL score essentially translates to a higher chance of getting a loan and that too on much better terms. With a high score, the approval is completed in a matter of days, if not less.

  • The bank/credit card company tends to offer people with an 800 CIBIL Score or above loans at lower interest rates as they have faith in your ability to repay.

  • An 800 CIBIL score might also mean that a borrower may be able to repay their loan over a longer repayment tenure.

  • Such a person might also be eligible for a much larger loan amount, due to the confidence that the lenders have in people like them.

Check How to Improve CIBIL Score

How to Protect Your 800 CIBIL Score or Above?

An 800 CIBIL Score means that the person to whom the same has been assigned practices excellent credit habits, ergo, in order to be able to maintain the same, they will have to keep doing what they have been doing all this while. For those who are interested in knowing exactly how they have been maintaining an 800 CIBIL Score and can keep it up there, the following list of practices that will help a borrower maintain an 800 CIBIL Score will be of interest to them. Additionally, if they like the challenge of going for 850, the following list will be of use to them as well. Read on to know more.

  • Set up Automatic Payments: A single late payment can reduce as much as 100 points off your 800 CIBIL Score. If you do not have automatic payments set up, it would be advisable for you to consider the same in order to avoid the risk of missing a payment and then subsequently go below the 800 point mark.

  • Keep an eye on Your Percentage of Utilization of Credit: As the phrase suggests itself, an individual’s score should use less of their limit of credit. The same can be achieved by making multiple payments during a single billing cycle.

  • Check for Inconsistencies and/or Anomalies in Your Credit Report: Mistakes on credit reports are common, and they tend to prevent CIBIL scores from going higher. It is due to this reason that one must observe their reports issued by credit bureaus and dispute any errors or unexplained entries that they may find.

If you would like to know more about CIBIL scores and check your CIBIL score online, you can do the same on Finserv MARKETS.