What does it mean to have a 900 credit score

According to credit score models, a 900 credit score is considered top-most level of creditworthiness. However, it’s not easily attainable. Usually a credit score range from 750-850 is considered good and is an outcome of a responsible credit behaviour.

What does it mean if you have a 900 credit score:

No missed payments: Over years all payments made on time
Credit utilization is extremely low: This signals that you are not dependent on credit much
Long and diverse credit history: Many years of diverse credit history combining home loans, credit cards, etc.
There are no hard enquiries: Very minimal applications on credit history meaning less dependence on credit

What are the benefits of a 900 credit score?

Having a 900 credit score is extremely rare. However, it offers some tangible benefits:

Low interest rates on loans: Opportunity to get low interest rates from lenders comparatively
Instant loan approval: Quick approval of credit applications because lenders have nothing to doubt
Premium credit cards: Access to super premium credit cards with accelerated reward points, higher credit limits, etc.

Space to negotiate: Chance to negotiate on processing fees, charges, better EMI structure, etc.

How to improve your credit score

Your credit score shows lenders how disciplined you are with handling credit. Basis that, lenders check your eligibility and provide credit accordingly. Below are the ways by which you can improve your credit score:

Always pay your dues on time and never miss payments: Your payment history is the single biggest factor in your credit score. One missed payment can significantly drop your credit score and haunt your credit report for years
Keep credit utilisation low: Keeping your credit utilisation low while improving your credit score is a must because it shows lenders that you are not dependent on credit much and have your finances sorted
Limit hard enquiries: Every time you apply for a loan or credit card in a short period of time, a hard enquiry is raised on your profile. This shows your hunger for credit, and it can lower your credit score. Give a time of 6 months between credit applications
Healthy credit mix: A diverse credit mix ensures that you can manage unsecured and secured credit well. This also helps you improve your credit score and ensures that lenders know you are responsible with handling credit
Monitor errors in your credit report: If there are any errors in your credit report, like incorrect late payments, accounts that do not belong to you, wrong balances, etc. can cap your credit score. Timely checking your credit report can help you get these errors rectified

Understanding credit score range

Credit score usually ranges from 300 to 900. Let us understand the breakdown:Credit Score RangeWhat It Means900Best interest rates, instant and pre-approved offers, ultra-premium credit cards801 - 900Best rates, easy approvals761 - 800Better rates than average701 - 760Score near or above average, most lenders approve credit601 - 700Some approvals but higher interest rates300 - 600Approval is difficult, may need secured lending

FAQs

Paying off all your dues and never taking a credit again will automatically take your credit score to 900. However, this is not true. No activity means there is no data. Lenders need to see active credit use.

There is not much difference between 900 and 750 credit score. Both scores are considered good for lenders and make you eligible for getting lower interest rates and higher credit limits with premium credit cards. However, a 900 credit score shows years of disciplined behaviour, which might get you slightly higher credit limits, ultra-premium credit card services and a lender approving your application faster.

If you want the best personal loan rates, then a CIBIL Score of 760+ is recommended. If your Credit Score is less than 760, then chances are you might have to pay high interest rates. If your credit score is 900 then it is likely you will get a personal loan easily at the lowest available interest rate.

Yes. It’s likely that a CIBIL score of 850 qualifies you for every loan product at competitive rates.

Your payment history, credit utilisation, credit history, credit mix and inquiries on your credit.