How to Get a Perfect 900 Credit Score?

Every individual has a credit score ranging from 300 to 900. It is a 3-digit number that credit bureaus calculate based on your credit-related activities. The more responsibly you handle credit, the higher the credit score you accumulate. Since your credit score indicates your credit history, lending institutions check this score whenever you apply for a new loan. They feel confident lending to you if your credit score is decent, indicating you are a responsible borrower with a high chance of timely repayment.

If you always pay your loan EMIs and credit card bills on time, maintain a credit mix of secured and unsecured loans, and have a low debt-to-income and credit utilisation ratio, you can build a perfect credit score of 900. Also, it is essential to monitor your credit performance and take adequate steps in time, including checking your free CIBIL score by PAN number online.

What is a 900 Credit Score?

A 900 CIBIL score is the perfect credit score all lending institutions prefer for sanctioning low-interest loans and credit cards. A 900 CIBIL score signifies that you handle credit responsibly and prioritise timely repayment. Apart from consistent EMI and credit card bill payments, a perfect credit score of 900 indicates a diverse credit portfolio, sufficient credit length, low debt-to-income (DTI) ratio, controlled credit utilisation rate, and no outstanding balances. This kind of credit behaviour is preferable whenever a lending institution evaluates your credit report to approve your loan or credit card.

Also Read: What Credit Score do I need for Personal Loan

What is the Considered Range of the CIBIL Score?

The range of the CIBIL score is between 300 and 900. Credit bureaus further categorise it into groups, such as excellent, good, fair, low, and no score. The credit score ranges may differ between credit bureaus, indicating the credit risk your activities pose to the lending institutions.

Usually, the credit score is a 3-digit numeric representation depicting your past credit behaviour and future creditworthiness. Any credit score below 700 indicates a high chance of loan rejection or approval at a higher interest rate than normal. Read on to learn how to get a 900 CIBIL score.

What Affects Your Credit Scores?

While each credit bureau’s scoring model uses different criteria to calculate credit scores, these are the most common factors affecting them:

• Payment History: It is the most crucial factor in credit score calculations. Even a single missed payment negatively impacts the score. Before approving a loan, lending institutions want to ensure you can repay your debt on time.

• Owed Amounts: Your credit utilisation ratio (CUR) is another important factor affecting your credit score. You can calculate it by dividing your total available credit limit by the amount you have used from that portion. It gives a snapshot of your reliance on credit. A CUR above 30% is a negative indicator for creditors.

• Length of the Credit History: How long you have been using credit makes up a significant percentage of your credit score. It includes the age of your oldest and newest credit account and the average span of all credit accounts. Usually, a longer credit history leads to a higher credit score.

• Credit Mix: Carry a diverse credit portfolio, including secured and unsecured loans, to build a 900 credit score. Diversity indicates how well you manage different types of credit products, helping you achieve a higher credit score.

• New Credit: The accounts you have opened recently affect your credit score. Too many credit applications and hard enquiries in your credit report may hurt your score and reduce your eligibility.

CIBIL Score Range - What Does It Mean?

The CIBIL score range is between 300 and 900, indicating your creditworthiness on a data-based scoring model. The higher your credit score range, the easier loan approval you are eligible to get. These are the CIBIL score ranges you must be aware of:

Out of these CIBIL score ranges, your goal should be to achieve a credit score of 900. It will make your loan approval much easier and faster than otherwise.

Why Is It Necessary To Check CIBIL Score?

Checking your CIBIL score allows you to see what lending institutions see when you apply for a loan. Make regular credit checks a part of your financial management, as it helps you know where you stand, identify any issues in time, and take the necessary steps to achieve a 900 CIBIL score. Regular credit checks help you in the following ways:

• Identify and Dispute Mistakes: If you spot an error in your credit report, you can dispute it with the lender or directly report it to the credit bureau. It might have errors like incorrect PAN numbers, typographical mistakes, wrong addresses, transposed numbers, etc. Rectifying them in time protects against identity theft and saves your credit score.

• Stay Protected Against Fraud: Checking the credit report regularly helps spot potential fraud or identity theft early. Similar to a medical check-up, spotting problems early keeps them from getting serious.

• Ensure Correct Reporting: While trying to build credit, you must ensure the credit provider gives correct information about your timely payments to the credit bureau. Checking your credit score ensures that it's happening.

• Take Appropriate Actions to Improve: Checking your credit score regularly helps you see where you can improve. It is more important if you are planning to borrow a loan or a new credit card. For instance, you can get the lowest interest loan on a 900 CIBIL score with favourable terms and conditions. Since your credit score largely depends on the information in your credit report, reviewing it regularly ensures correct information.

Conclusion:

Now that you know how to get a CIBIL score of 900, it’s time to monitor it consistently and take the necessary steps when required. A credit score of 900 helps you get the best loan offer with lower interest rates and favourable terms and conditions. If you want a Personal Loan on a 900 credit score, apply on the Hero FinCorp website or loan app today for the best offer!

FAQs:

A 900 CIBIL score gives you higher creditworthiness so lenders prefer to approve your loan application. You can get a lower interest rate and a better offer for a loan on a 900 CIBIL score.

If your CIBIL score is 900, it is because you pay your bills and EMIs on time, have a healthy credit mix in your portfolio, and have a low DTI and CUR ratio.

The CIBIL score ranges from 300 to 900. A 900 CIBIL score is a strong score that maximises your loan eligibility and creditworthiness.