What is a Good CIBIL Score and Tips to Maintain It

Credit Range	Score
300-579	Poor
580-669	Fair
670-739	Good
740-799	Very Good
800-850	Excellent
850-900	Outstanding

Some lenders may approve a loan only if you have a score of 750 or above, while others may consider your application even with a score of 600. This may also depend on the type of credit you are applying for. 

 

In general, a good CIBIL score range for personal loans may be higher than that of secured loans like gold loans. Sometimes, this also depends on the lender’s internal policies and on your eligibility as a borrower, especially with regard to income. 

 

So, you are wondering what CIBIL score is considered good for the type of credit you want, the best option is to contact your lender. 

What are the Benefits of a Good Credit Score?

Now that you have a clear idea of the credit score range, here are a few advantages of maintaining a good credit score.

 1. Better Access to Credit Cards and Loans

With a good CIBIL score, you can get the type of loan or credit card you want. This is because the lender sees you as a reliable borrower with good credit management and timely repayment abilities. This can boost a lender’s confidence, giving you better access to all types of credit.

2. Lower Interest Rates 

With an ideal CIBIL score, you can enjoy more nominal interest rates, thereby lowering your overall borrowing costs. If you are wondering, ‘What is the ideal CIBIL score?’, it is best to check with your chosen lender. In general, a score above 750 will get you affordable credit with ease. 

3. Quick Approvals

A high CIBIL score indicates you are financially stable and a responsible borrower, which means you have an excellent chance of getting speedy approvals for a loan. In some cases, a good CIBIL score can also speed up your loan-related formalities. 

4. Savings on Insurance Premiums

Insurance companies use various methods to determine whether you are eligible for certain policies based on their risk assessment. If you have a good repayment history, you may be eligible for lower premium amounts. 

5. Approval for High Credit Limits

A good CIBIL score indicates you do not have too much existing debt or have a high repayment capability. Due to this, you can get approval for higher credit card limits or loan amounts. 

 

Since a credit score is so vital to your loan approval and affordability, keeping track of it is important. You can do this with ease on Bajaj Markets and check your CIBIL score for free. 

1. Paying your bills on time

• To maintain a good CIBIL score, you should aim to pay your bills on time and in full. Doing so boosts lenders' confidence and indicates to them that you are a responsible borrower.

2. Not drawing multiple loans

• Drawing multiple loans can be a red flag for lenders. Doing so might indicate that you are an individual who is incapable of managing credit or is neck-deep in financial troubles. 

• If you draw multiple loans, the risk to your lenders rises considerably. And in the worst-case scenario, if you fail to repay your loans, your credit score will take a severe dent. So, unless absolutely necessary, avoid drawing multiple loans. 

3. Avoiding late payments

• It is important to avoid late payments to maintain a stable credit score. 

• Late payments can decrease a lender's confidence in your ability to repay. Also, late payments may attract a considerable amount in penalties (such as credit card late payment fees).

4. Staying below your credit limit

• Your credit limit is determined by several factors, such as the type of loan, your income and debt levels, and more. 

• Overshooting your credit line or mismanaging your debt can invite serious consequences and tank your credit score. It is best to stay below your credit limit to always have a margin of safety. 

5. Checking errors in credit reports and bills

• Any errors in your credit reports and bills can negatively impact your credit score. Hence, it is paramount that you comb through your credit reports to verify the figures in them and catch any potential errors.