September 27, 2024 · 18 mins read
Santosh Kumar
CIBIL score is the most important thing for someone who cracks the theory of spending with credit cards and utilizing loans. This is a 3-digit numeric value that reflects all your credit history, credit utilization, trustworthiness, and financial management skills. Having a good CIBIL score opens the door to various financial opportunities.
In this article, you will understand what is the perfect CIBIL score, the ranges of CIBIL scores, the benefits of having a good score, how to achieve a perfect CIBIL score of 900, how to check CIBIL score, and where you can check your CIBIL score.
A CIBIL score of 900 is like a golden spoon for borrowers and lenders. Achieving the perfect score is always a dream for a responsible borrower, and for lenders, it is the most important proof of trust. Scroll down this article and master the financial skills to achieve a perfect CIBIL score of 900.
Before getting into this, what is the meaning of a CIBIL score of 900? Let's understand the CIBIL score. The term CIBIL score is a numeric representation of three digits that refers to one’s credit history, credit rating, and overall credit report. There is a range of CIBIL scores that starts from 300 to 900. This value is also known as Credit score.
Now, let’s understand the meaning of CIBIL Score 900. The Credit Information Bureau India Limited, shortly known as CIBIL, is responsible for maintaining the credit reports of those who take credit or loans. The CIBIL score of 900 is the perfect score, which all lenders prefer for approving low-interest loans.
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In this blog, you will learn how to check your CIBIL score and why it is important. These two concepts are the basics one should know before taking a credit card or loan. In general, a 650+ CIBIL score is marked as a good score.
Read More: Is 720 a Good CIBIL Score?
It is important to know the meaning of your CIBIL score before knowing how to check your CIBIL score. The table below represents the different ranges of CIBIL scores & what they mean:
Range: NA/NH
Rating: Not applicable
Meaning: You have not used any credit card or taken any loan.
What to Expect from Lender: For a credit application, you must have a credit history.
Range: 300-549
Rating: Poor
Meaning
1. You have numerous missed payments or default loans or EMIs.
2. Poor credit utilization.
3. Many credit inquiries.
What to Expect from Lender: Lenders might not approve your loan as they will consider you a high-risk defaulter.
Range: 500-649
Rating: Fair
Meaning:
1. Have irregular, late payments.
2. Multiple credit inquiries.
What to Expect from Lender: Either lender will tag you as a risk borrower and not approve your loan or give a high-interest loan.
Range: 650-749
Rating: Good
Meaning:
1. Credit history of good repayment.
2. Lower risk of defaulting.
What to Expect from Lender: The lender will approve the loan but might not get the best deal.
Range: 750-799
Rating: Very good
Meaning
1. Regular credit payments.
2. Long credit history.
3. Low-risk borrower.
What to Expect from Lender: Easy loan approval with less documentation.
Range: 800-900
Rating: Excellent
Meaning:
1. Excellent financial management.
2. Regular credit payments.
3. Low credit utilization.
4. Good credit history.
What to Expect from Lender: You will get the best deals from the lender.
After knowing your CIBIL score, you must learn what factors affect your CIBIL score. Take a look at the following points:
1. Your credit history tells a lot about your Credit health. Just like one person gets more experience with age, your credit history tells about how much experience you have gained and how you managed your CIBIL score properly. It reflects your credit management skills.
2. Lenders always check your credit repayment record before approving any loan. Based on this record, they decide which category (high risk or low risk) they can keep you in and give you rates accordingly.
3. Many people don’t bother to track their credit utilization ratio, which is also important. Your credit utilization ratio must be between 25% and 30%. Otherwise, it shows that you are spending money borrowed beyond your pocket.
4. It is a bonus point if one has a mix of credit accounts. What is meant by a mix of credit accounts? This means that your credit history has secured and unsecured credits registered. It makes you more creditworthy than those who have similar kinds of loans.
5. There should be a balance between your debt and income ratio. It shows how many loans you have taken and the amount of loan you can afford against your income.
6. You must clear all your debts and should not possess any outstanding debt. It leaves a negative effect on your CIBIL score.
7. Your debt trap increases if you don’t pay more than the minimum amount to be repaid.
8. If you habitually apply for multiple credit products, your lender conducts a hard query on your CIBIL report. It lowers your CIBIL score.
Read More: How Students with No Income Can Get a Credit Card
If you want to increase your CIBIL score, you must have the motivation to do it. To do this, you must understand the benefits you can get after touching a 900 CIBIL score. The benefits are discussed below:
If you have a CIBIL score as high as 900, your loan or credit card applications will be approved without issues. It guarantees that your applications will be accepted.
A CIBIL score of 900 will offer you the best interest rates. The lender will consider you the safest person for handling a loan and give you the lowest interest rates.
If you can achieve a CIBIL score of 900, you will have extended access to pre-approved loans and credit cards. It will give you quick access with less documentation.
Multiple types of credit cards are available for borrowers. A 900 credit score will give you access to premium credit cards, which offer various rewards, points, cashback, etc.
The higher the score, the more limits will be given to your credit card and loans. A credit score of 900 means that you can take a loan and repay it in time. You are responsible enough to handle your credit card and loans with a high limit.
A high score like 900 will give you longer tenure loans. What does it mean? This means that if the lender gives you the option to repay a loan throughout a long tenure, you are trustworthy enough not to default. It lowers your periodic burden of loans, and you can pay the loan in a small amount monthly.
Sometimes, lenders or credit card companies will waive yearly maintenance fees when you have a good or excellent CIBIL score.
When someone takes out a loan, it burdens them more to repay. But if you can maintain a good CIBIL score, you don’t have to worry about anything. Calculate things, keep rapping on time, and maintain a good image. That’s all.
Read More: CIBIL Score Role in Loan Application Process
Achieving the perfect CIBIL score of 900 takes a lot of effort, time, and proper credit management skills. The key strategies to achieve a perfect CIBIL score of 900 are as follows:
1. The first thing you must do is always pay your loan EMIs on time.
2. Keep your credit utilization ratio low. Try to maintain it below 30%.
3. To demonstrate responsible credit management, try out a variety of credit products, such as credit cards, personal loans, and home loans.
4. Monitor your credit report regularly to keep track of everything.
5. Try not to create hard queries unless they are very urgent.
6. Build a long credit history.
7. Try to become an authorized credit user.
8. Be cautious with co-signing loans.
Various websites offer free CIBIL score checking. Is there a basic pattern for the process of how to check CIBIL score? Follow the below-mentioned points to check your CIBIL score:
1. Visit any of the websites that offer CIBIL score checking.
2. Fill out the form with the required information.
3. Verify your identity via OTP sent to your mobile number.
4. Get your CIBIL report without any cost.
Read More: Can Gold Loan Affect Your CIBIL Score?
Check out the documents required for checking your CIBIL score:
1. PAN
2. Date of birth
3. Registered mobile number
4. PIN
5. Email address
You have learned how to check your CIBIL score, and now you must know where to check it. You can check the CIBIL score on our official application, ZetApp. Go to the official website @zetapp.in to get the application download link. Click on the link and download the application. Sign in using the required personal information. After signing in, log in to your profile using your registered credentials. Navigate to the CIBIL score-checking option and fill out the details to check your core. You can also check your CIBIL score on the official website of CIBIL @cibil.com/freecibilscore.
Here are some tips for how you can increase your CIBIL score:
1. If you have any outstanding balance, you must pay it first to improve your CIBIL score. Check out your credit history, list unpaid credit balances, and pay them individually or together.
2. Always monitor your credit card spending.
3. Always pay your EMIs on time as per schedule. You can set either autopay or reminder.
4. Lower your credit utilization up to 30% maximum.
5. If there is any discrepancy in your credit report, report it to them immediately.
6. Have a mix of credit accounts.
7. Do not apply for multiple credit applications in a short duration.
8. You should avail of a secured credit card.
9. Do not close your old credit accounts. It helps to extend the credit history.
10. Try to increase your credit limit.
11. Plan out your total monthly income and spending.
12. Regular checks are crucial for spotting any discrepancies.
13. You must protect your sensitive personal information. Otherwise, it will increase the chances of identity theft.
14. If needed, seek credit counseling.
Read More: CIBIL Vs Experian
Getting a 900 CIBIL score may sound like a farfetched dream, but it’s totally achievable with good credit habits and regular check ups. A 900 CIBIL score is an indication of excellent financial discipline, a history of repayment and sensible credit usage. To get to this stage, you start by knowing your report, know what’s wrong, and slowly fix every factor that affects your CIBIL score. Begin with your repayment history, credit utilisation, credit age and credit mix. All of these contribute to your credit score.
Timely repayments are one of the best CIBIL score tips. Even one missed EMI can cost you multiple points. If you include screening in your bill payments, either through automatic payment or reminders, you won’t miss due dates. Lowering your debt balance also assists. When your credit utilisation remains less than 30%, lenders view you as a responsible borrower, and this can speed up your journey to 900 CIBIL. And, if you have multiple loans or cards, depleting high-interest debt first instills healthier balance in your credit profile.
Increasing the age of your credit accounts is key here, too. Older accounts show steadiness and long term financial responsibility. Don’t close old cards – this will hurt your credit age and available limit. Leveraging a mix of creditcredit cards, personal loans and secured loans like car or home loanscan also boost your profile. The proper blend demonstrates to lenders that you can manage diverse types of credit well.
A lot of them shoot for a 900 CIBIL score and don’t realize they are making the same mistakes that are holding them back. One big boo boo is seeking too much credit too soon. Each time you request a loan or credit card, a hard enquiry is logged, which reduces your score for a short period of time. Heavy usage gives you the look of a credithungry, decreasing your probability of hitting the ideal score.
Another frequent obstacle is high credit utilisation. Even if you pay everything on time, consistently utilizing 60 to 80% of your credit limit indicates risk. A 900 credit score demands a ruthlessly disciplined spending and usage. Neglecting ancient loan accounts, defaulting on small EMIs, or letting disputes linger can also pull your score down. Eliminating these problems early guarantees that your score will continue to increase without any surprises.
And, last, but not least, a lot of people neglect having their credit report reviewed for mistakes. Errors, old loan records or incorrectly reported late payments can block score gains even when you practice good habits. Frequent checking will catch you these kind of problems and allow you to dispute them quickly.
Does updating address or KYC info impact cibil score, many people ask. The score itself isn’t affected directly by an address update, however incorrect or stale KYC information can cause discrepancies between your lender records and credit bureau information. In contrast, these discrepancies can stall loan or verification approvals, which can indirectly affect your credit path.
Your address and KYC information being up-to date will allow lenders to verify your identity without a hitch. When the paperwork is the same across banks, the credit bureaus and all of the financial institutions, it really minimizes the opportunity for reporting errors. If you don’t have an up to date address, important loan statements or notices may not arrive in time, putting you at risk of missing payments. Keeping information accurate is a no brainer but it’s a great CIBIL score improvement tips that underlies your long-term 900 score dream.
Late payments are among the greatest impediments for a perfect 900 credit score. Any late payment, even of a few days, goes on your credit record. Multiple late payments really destroy your reputation as a borrower. And since repayment history accounts for the majority of the weight in CIBIL’s scoring model, keeping a clean slate is critical.
If you’ve missed payments in the past, however, consistent timely payments for the next six to twelve months can do wonders. By communicating with lenders and choosing restructuring or EMI rescheduling—before a payment becomes overdue. You can avoid black marks on your credit report. Flawless repayment behaviour is a must-have when targeting a 900 CIBIL score.
A balanced credit mix and low credit utilisation — the secret sauce behind a top-tier 900 CIBIL score. Credit mix means keeping a good balance of secured and unsecured credit. When lenders observe that you responsibly manage mortgages, auto loans and credit cards, they believe your credit habits more.
Credit utilisation, on the other hand, decides how much of your credit you actually use. Utilizing more than 30% of your credit limit shows a credit habit, whereas utilizing less and making on-time payments demonstrates financial responsibility. Having control over both these factors puts you in a more advantageous position for the top score ranges.
Now, you know everything about a CIBIL score of 900. Follow the points mentioned above for your answer to how to achieve a perfect CIBIL score of 900? Make your financial future as healthy as you want to keep your physical health. It doesn’t matter whether you are from the young generation or have experience in this area. You must keep your financial activities on track. And for this, the CIBIL score is one of the most contributory factors that will help you to keep your financial activities on track.
You must invest 3 to 5 years to achieve the 900 mark if you have no credit history. However, if you have a credit history, you can achieve it sooner. It depends on the current credit score. For example, it takes 1 to 2 years to jump from the 750 to 900 mark. You need a consistent effort to reach 900.
No, if you have achieved a 900 CIBIL score, it remains valid if you maintain it consistently. But, even after achieving that point, if you don’t make an effort to keep it maintained, it can lower down based on your activity.
Yes, identity theft directly impacts your hard-earned CIBIL score. People can make new credit cards, take a loan, damage your credit history, destroy your credit utilization, and generate multiple credit inquiries. So, beware of this fraud.
Various factors affect a CIBIL score. You may have paid all the debts on time but still have a lower CIBIL score than 900. The following things can be responsible for this:
1. You have a higher credit utilization percentage.
2. Your credit types are similar.
3. You do not have a mix of credits.
4. You have not noticed an error in the CIBIL report yet.
5. Someone is misusing your identity.
No, checking your CIBIL score is considered a soft query. It doesn’t impact your CIBIL score. But if you apply for a loan, lenders research your credit history, which is considered a hard query. Hard queries affect one’s CIBIL score for a short time.
If you are declared bankrupt, your CIBIL score can be directly affected. It takes a lot of time to build a high score of 900. Reviving this will take a lot of time again.
A 100% home loan depends on factors like income, property value, and the lender’s criteria and policies. However, if you have a CIBIL score of 900, your chances of getting the best deals from the lender will definitely increase.
To increase a CIBIL score pay your bills consistently on time, use low percentages of credit limit on your accounts, keep your old accounts open. Pay off any bills you owe, and check your credit reports regularly.
Adding your address or KYC information will likely not directly increase your CIBIL score, but new information can remediate reporting errors where credit may not be reported accurately, and communication may slow down your overall credit performance. This serves as a secondary measure to maintain scoring long-term.
At least every three to six months to maintain accuracy and ensure progress to 900 CIBIL score.
You may experience a decrease if you are utilizing a high percentage of your credit limit, applying for new credit, your credit limit has been lowered by a lender, you have closed a card(s) or account(s), or there has been inaccurate reporting of your credit.
Yes, closing a credit card(s) removes credit limit and credit age, which can negatively affect a CIBIL score.
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