November 5, 2024 · 10 mins read
Santosh Kumar
A CIBIL score in the range of 772 is considered well above average and finds a place as one of the excellent numbers for a credit score.
It reflects creditworthiness and shows that you are reliable and financially trustworthy. The score has rare or non-existent negative entries like late payments or defaults in the significant period leading up to the CIBIL score calculation. It signifies a very good track record of punctuality when paying back your dues and a great credit history. A score of 772 is a culmination of good financial management and maintenance.
When it comes to understanding CIBIL score- the basic concept is that it reflects your credit behaviour and establishes a financial identity for you that is viewed by banks, lenders and credit card issuers. It becomes a point of reference for them to base their many decisions upon. From loan approval to credit card inquiries – every financial decision is impacted by a CIBIL score which is a three-digit number reflecting your credit history and activity. It encapsulates your history with credit, like loans taken, payments, repayments, etc. It traces your present credit history, like ongoing loan and credit card ownership and includes details of whether you have missed or defaulted a payment. It is essentially a placard held by you for the banks to identify and place you in categories as established by the range your score falls into.
When it comes to the credit system, a CIBIL score of 772 is considered to be an excellent score. Most lenders like banking Institutions, financial organisations, non-banking financial institutions, credit card issuers etc prefer a score of 750 and above to consider most loan and credit card applications. For them, a score of 772 reflects good credit history and sound financial management skills.
Is 772 a Good CIBIL Score? What Can It Get You? If This question is on your mind, then this article has the answer for you. First of all, yes! A CIBIL score of 772 is a good score. It can enable you to attain many things regarding credit finance, from loans to credit cards to other advantages. Now let us look at what a CIBIL score of 772 can get you-
1. Loan approval- The first major advantage of having a CIBIL score of 772 is that it makes it possible for you to apply for and avail of various loans. Be it personal loans, vehicle loans or a home loan- with a score of 772, you will have an easier time getting approval for your loan. In fact, your wait time will be significantly cut down, and your process will be smoother. With a score of 772 lenders are more inclined to give you credit; this is highly beneficial for people who wish to acquire huge sums of money to establish new business, invest or during emergencies. Whether you want to invest in a new home real estate or start a new venture, your loan approval process will be easy and hassle-free if you have a credit score of 772. There is a possibility that you get good or preferential treatment at banks, lenders and issuers of credit cards.
2. Credit Card- Credit Card issuers will evaluate your CIBIL score to offer you a suitable card. With a CIBIL score of 772, you will be able to acquire a credit card with a higher spending limit, better perks and advantages. It allows you more room for flexibility and gives you the confidence to negotiate better deals in terms of credit limit and rate of interest. A premium credit card is a great way to handle unexpected purchases and make large purchases without going through a loan application process, as it comes with a pre-approved credit limit. A good score of 772 will bring with it many perks and advantages that will be a good way to enjoy little perks like shopping discounts, travel points, lounge access, higher credit limit, etc. it will truly make your spending more rewarding as well.
3. A lower rate of interest- a CIBIL score of 772 will also help you get good deals on both short-term and long term loans. You will be able to get lower rates of interest on loans like home loans, vehicle loans, etc. you are seen as a low-risk borrower, and they are more willing to give you very competitive rates of interest. This, in turn, translates to a substantial amount of money you can save over time. A higher credit score of 772 will not just mean loan approval but can also dictate the kind of interest you will be asked to pay. A lower interest rate is favourable in the long run and will be a great way to enjoy your benefits.
4. Impact on insurance premiums- in some cases, some insurance companies also keep track of your CIBIL score and help them determine your insurance premiums. A good score of 772 may get you a low insurance premium. The credit score is used to do a risk assessment, and a good score of 772 translates to responsible financial behaviour. This may significantly impact your premiums and you will be given a lower premium owing to your CIBIL score.
5. Added bonus- a CIBIL score of 772 will also lead to you having several direct or indirect advantages, financial and others. In terms of indirectly affecting your life, a CIBIL score of 772 may help you establish your identity as a person of worth in rental applications. It will help landlords identify you as a low-risk renter and make it easier for you to be approved for rental units. Even in the case of job applications, you will be seen as a financially responsible person and a low-risk individual for high-ranking jobs involving money.
6. Financial flexibility, confidence and security- apart from the very immediate benefits of having a CIBIL score of 772 like loans and credit cards, it can also help you reduce financial stress during emergencies. You can have financial confidence and stability in knowing that you have access to credit and you can use this credit to expand your business, invest, or anything you like. It can also open up many new avenues for business opportunities and career prospects, which will, in turn, help change the course and quality of life.
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For some people, reaching a score of 772 may be seen as a huge accomplishment as it opens up so many possibilities. It certainly requires a bit of practice and meticulous planning to achieve a good credit score. As it has many advantages, many people strive to achieve such a score. It promises a lot of opportunities and opens new doors for financial freedom and stability. If reaching this score is your goal, you can follow certain things.
1. Paying off your debt, credit card bills and your instalments on time is the first step to ensuring that your cibil score is always positive and on the way to increase. Timely payment is a huge impact factor that affects your credit score, and it is a good idea to set up payment reminders and an auto payment system to make sure that your payments are up to date. Avoid defaulting at all costs.
2. Maintaining a diverse range of credit is another great way to influence your CIBIL score. It demonstrates to the lenders that you can successfully juggle multiple types of credit with great responsibility. Your credit mix could include credit cards, loans like mortgages, personal loans, etc. Although it is not advisable to seek loans just to build your credit score, if there is a requirement, then diversifying your credit is the best way to go about it.
3. The credit utilisation ratio should always be maintained under 30% for a good credit score. If your utilisation is overshooting the ratio, then you can negotiate with the credit card company to increase your credit limit. Still, it is important to keep your utilisation ratio to a minimum.
4. Another key factor that impacts your CIBIL Score is your history of credit. Lenders like to see a longstanding relationship with banks and reliable credit usage; hence, it is important to keep a well-maintained credit history. It is always advised to keep old accounts active and open.
5. Limiting your hard inquiries is another way to make sure that your credit score is positive. Hard inquiries for loans and credit cards tend to negatively impact your credit score, which is why you should avoid making multiple hard inquiries.
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Certain things negatively impact your credit score; avoiding such things will ensure that your CIBIL score of 772 is safe-
1. Do not default on any payment, be it credit card bills, loan instalments, etc. The more transparent your payment history- the better your chances of a good score.
2. Avoid making formal inquiries about loans and credit cards, as this reflects poorly on your financial health and puts up a message of financial instability and turmoil.
3. Do not immediately close up old accounts; try to maintain a longstanding history with the lender to establish trustworthiness.
4. Do not overspend your credit limit. When you hit maximum utilisation on your credit limit set by your credit card issuer, it shows financial confidence and will impact your score negatively.
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From affecting your interest rates to easier approval of loans to getting access to the best credit cards- having a CIBIL score of 772 is a really great financial position. It allows you to be more confident and flexible with credit and make use of the multiple types of credits and loans that may become available to you. Lenders and credit card companies see you as a reliable individual and allow you to enjoy credit cards that have many perks and privileges. A score of 772 establishes you among the top tier percentile and will show that you have a good credit report and a good history of handling credit. Understanding and being able to leverage your credit score of 772 will unlock many potential opportunities for an individual. It truly becomes a financial asset but one should always tread with caution and try to maintain this score to be able to enjoy all these perks for a long time.
Is it very rare to have a score of 772?
A score of 772 is considered to be among the very good credit score ranges. It is an above-average score that many people want to achieve.
A CIBIL score of 772 is good for applying for loans?
A CIBIL score of 772 is definitely a good score for applying for loans. This is considered to be a fairly good score and can help you avail of many types of loans with ease.
Can a score be further increased from 772?
A CIBIL score can be further increased from 772, as the highest score is 900 on the scale.
What loans can I apply for with a 772 CIBIL score?
With a CIBIL score of 772, one can apply for many types of loans like home or mortgage, personal, automobile, etc.
How many times is it okay to check for CIBIL score?
It is generally advised to check your CIBIL score once a year however, you may require to check it in case you need to apply for loans or credit cards.
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