Whenever you apply for a loan or a credit card, your credit score is one of the most crucial figures that lending institutions check. That is because your CIBIL score is a three-digit number indicating your payment history, creditworthiness, and overall financial management. Based on this information, they determine your chances of loan approval, loan eligibility, and the likelihood of default.
If you are looking for a credit product, check your credit score and ensure it is good enough to fulfil the lender’s requirement. This article will teach you how to increase your CIBIL score to 800.
A good CIBIL score helps you get the best loan deal at attractive interest rates and terms. Since the lender trusts high-score borrowers to make timely payments, they are more likely to grant higher credit limits or larger loan amounts at lower interest rates, with fewer additional charges, and budget-friendly EMIs. A score of 800 means you have an excellent credit history and enjoy better terms on loans and credit cards. Here is the CIBIL score range.
CIBIL Score Range | Rating |
---|---|
300 - 500 | Poor |
500 - 650 | Average |
650 - 750 | Good |
750 - 900 | Excellent |
Here are a few tips on how to increase my credit score to 800.
The credit score is calculated largely based on your repayment history. Making timely payments for all loan EMIs and credit card bills is the best way to increase your CIBIL score and achieve an 800 CIBIL score. To maintain a consistent repayment history, activate the e-mandate to clear your recurring payments without overspending automatically before the due date.
The outstanding balance on your credit card or loan primarily impacts your credit profile. The higher the balance, the lower your credit score. Clearing the credit card balance will boost your credit score by several points instantly.
A diverse credit portfolio shows your skill in credit management and handling a mix of credit responsibly. Therefore, diversify your credit with different secured and unsecured loans and credit cards to improve your CIBIL score, build a good credit, and aim for a credit score above 800.
Building a credit history takes time. The longer you handle credit responsibly, the better the credit record you can build. Therefore, lengthen your credit history by taking credit early on and retaining old accounts.
Most lending institutions, including Hero FinCorp, offer flexible repayment terms, allowing you to choose a tenure with budget-friendly EMIs. If you aim to build a higher credit score, opt for a longer repayment tenure and pay your EMIs timely payments to maintain a good score and consistent financial management.
Each loan or credit card enquiry you make pulls a hard enquiry on your credit report. Lending companies make this query to evaluate your credit behaviour and repayment capacity. Compare loan plans carefully and apply for credit wisely to minimise hard inquiries on your credit report. This simple strategy will save your score from dropping unnecessarily.
Monitor your previous debts to check their outstanding dues and clear them as soon as possible. If you want to revise a repayment plan, opt for a balance transfer to make it more manageable.
Your score might seem low due to an error in your credit report. The document may have a wrong, double, or missed entry, possibly holding your credit score down. Request your credit report, analyse each entry carefully, and file a dispute if you spot an error. Resolving the mistake will instantly help you improve your score and increase CIBIL score to 800.
Now that you know how to get a CIBIL score above 800, let’s look into the advantages of having a high credit score.
Advantages | Description |
---|---|
Lower Interest Rate on Loans | A high credit score indicates responsible credit behaviour and high repayment capacity. |
Higher Approval Odds | Since you have handled credit responsibly in the past, lenders perceive minimum risk in approving your loan. |
Faster Loan Approval | When you have a good CIBIL score of 800, lenders need to go through minimal verification procedures and additional formalities. |
Higher Loan Amount | An 800 CIBIL score indicates high repayment capacity and minimal missed EMIs or loan default chances. |
Best Loan Offers | Lending institutions feel safer lending to borrowers with high repayment capacity. |
Better Repayment Plan | If you have a good CIBIL score, you can choose a repayment plan according to your financial capacity. |
Once you achieve an 800 credit score, continue making your payments on time and retaining old accounts to maintain them. Moreover, keep your debt-to-income (DTI) ratio low and increase your credit limit to keep your credit utilisation ratio down. These are a few tricks to maintain your credit score at a high level.
Financial discipline, regular credit monitoring, and restrained credit card usage are the keys to improving and maintaining a good credit score. While lending institutions insist on a high credit score, Hero FinCorp uses a unique model to grant instant loans to individuals even with poor credit scores.
The time required to get an 800 CIBIL score depends on your current score and the strategies you use to improve it. It may take a few weeks to months to improve the score.
Credit bureaus calculate the credit score based on your repayment history, diversity in your credit portfolio, DTI and credit utilisation ratio, etc.
Check your credit score at least once every six months to keep it in optimum condition and take prudent action when necessary.
Your credit report may contain different types of errors that may impact your score. Identify the errors and report them to the credit bureau to improve the score quickly.
Some lenders emphasise repayment history, while others check the DTI and credit utilisation ratio to gauge an applicant's loan eligibility.
A Consumer CIBIL Score is a three-digit number (300-900) representing an individual's creditworthiness based on their credit history. Higher scores indicate lower risk and better loan terms.
Disclaimer: The information provided is derived from conducted research. To enhance your CIBIL score, you must meet certain criteria. Please verify with official sources before taking any action.