Did You Know?
We serve loans, the best way you can borrow
When talking about credit ratings, there is a concept of a ‘perfect’ max credit score. Is it possible to achieve this peak in any way, and if so, how does it relate to your economy? In this article, we will look at whether it is possible to aspire for a 900 credit score, what builds a good credit state, and how to shoot for the best score.
The highest credit score possible 900 represents the highest possible rating on the CIBIL scale in India. It indicates exceptional credit health. Besides, it ensures that an individual can repay on time. Lenders view a 900 score as outstanding creditworthiness. They approve the loans faster with better terms & lower interest rates.
Can you get a 900 credit score? Reaching a 900 credit score is possible with these steps –
1. Pay your bills before deadlines: Always clear bills at least a few days before the due date.
2. Become an authorised user: Suppose a family member has excellent credit. You can ask them to add you as an authorised user on their credit card.
3. Avoid frequent hard inquiries: You must never apply for new loans or credit cards too often. You should leave at least six months between applications.
4. Keep your utilisation low: Try not to spend more than 10% of the available credit limit.
5. Hold on to older accounts: The longer the credit history – the stronger your profile will be. Keep the oldest cards & accounts active.
6. Check your reports regularly: Errors can creep into credit reports. Review yours a minimum of once or twice a year & dispute mistakes too.
7. Add variety to your credit profile: Credit cards & personal loans (or EMI) show lenders that you can handle different types of borrowing.
8. Use credit monitoring tools: Credit monitoring solutions keep you familiar with fraud attempts or suspicious activity (or even changes).
Also Read: Personal Loan with 550 Credit Score
Higher credit scores can be defined as quantitative ratings assigned to you by lending institutions to creditworthiness to enable the lender to determine whether it is safe to advance credit to you.
These scores are computed depending on such parameters as payment history, credit card balances, length of credit history, variety of credits used, and number of credit enquiries.
Though FICO, the most widespread credit score model, varies between 300 and 850, some other less familiar models may reach 900 or, in some exceptional cases, 950.
This raises the question: Is it any way possible to get to a 900 credit score?
FICO and VantageScore are two of the most popular models used in the calculation of credit scores; the highest score that one is capable of achieving is 850.
A credit score of 850 is known as an exceptional credit score and makes you ranked as a super-prime credit borrower. But some of the older models or less popular models might provide for a 900 credit score, though these are not very much in use.
It is paramount to know the low and high possible range of scores that one’s lender employs in deploying its model. While the 900 credit score may be impossible in the majority of models, striving to get a perfect credit score of either 850 or slightly lower is still a great idea.
The results of having a higher credit score are more favourable interest rates, the possibility to get loans and credit cards without any issues, and other advantages.
Credit scores of 700 or above are generally considered good, while exceptionally good scores are 750 and above scores. An exceptional credit score, which includes 800+, means that you have a record of timely payments, a low credit utilization ratio, and a good credit mix. But what is the rigour that is implicated in creating and sustaining better credit?
Payment history is found to be the most influential factor that forms 35% of the FICO score. Pay all of your bills on time, including your cards, loans, and utilities, to build your good credit history. Just one missed payment can make a huge dip in your score. That's why it’s very wise to set up reminders or to set automatic payments, which negates the chances of missing a payment.
A 900 credit score is more myth than reality. The credit score as is used in the most popular credit scoring models can go as low as 300 and as high as 850.
Nevertheless, some of the older or specific models will employ the 900-point scale, which creates the impression that this is a standard that is expected of consumers. But even if a 900 credit score is possible in some of the models you mentioned, it will not give any extra utility than the score of 850.
Getting to a 900 credit score therefore should not be your goal. Rather, focus on those aspects that make up a credit score in the model that it obtains from the lenders. As a result of previous and continuing behaviours, it is possible to maintain a higher credit score and to get the maximum credit score shortly.
Start by conducting a credit card report audit with the respective institutions. In this way, you will be able to develop some insights into the present performance, and where required, you can have a look at the mistakes or the aspects that need improvement.
After that, some aspects are important when concerning credit score:
The last one is payment history, to which already much attention was paid above.
To eliminate the possibility of incurring higher interest by defaulting on payment, make payment through automatic debit or use alarms.
If you have a history of making payments late, then endeavour to make all your payments on time in the future, as this will gradually improve your credit score. Further, try to settle all credit balances, and it is preferable to keep the credit utilization ratio to the minimum.
Having a perfect credit score, let alone 850 or a number slightly lower, effectively means getting access to more benefits. This has a net positive effect on an individual as ‘’people with good credit scores get the best deals in loans and credit cards that give reasonable interest rates.’’ However, having a good credit score also enables you to have leverage in the type of loan that you are to be offered because of the good terms that come with it.
The most important advantage of a high credit score, as with any credit reference, is the right to borrow at lower interest rates, especially on mortgages, car loans, etc. If interest rates drop in the period up to the end of the loan period, even by a small margin, the savings can run into thousands. For instance, on a mortgage, less interest enables you to spend thousands of dollars less on fees during the period of the loan, making it smoother to take care of one's finances and to meet other expenditures.
Apart from loans and credit cards, there are other ways in which a high credit score affects the lives of its holders. Some landlords and employers use credit scores as criteria for selecting tenants' staff, and having a good score means the opportunity of getting a house or job will be high. Moreover, insurance companies put lower rates for people with good credit scores, making the expenses minimal to ensure components of Sound Money.
Also Read: How can Personal Loan Improve Credit Score?
Having established a good credit standing is then very crucially important to ensure that you do not let it deteriorate. From the features affecting your score, you must observe the credit reports you receive periodically for signs of fraud or identity theft because they can lower your score if not remedied as soon as possible.
Make use of free credit report monitoring services that send notifications on any modification that occurs to the credit report to act on them. To retain such accounts, it is also advisable to continue to use your credit accounts, though infrequently.
It may be a good idea to close old accounts because it will remove them from your credit report, but it will decrease your available credit and also decrease the length of your credit history, which both will hurt your score. However, do not close your accounts; always transact on a smaller limit occasionally, then ensure that you pay the amounts in full by the end of the month.
Finally, ensure that you do not open an account for new credit. Every time you make an application for a credit card, loan or any type of credit, an inquiry in the credit report records a hard inquiry.
A couple of weeks, on the other hand, may result in decreased scores due to multiple enquiries and provide the lenders with all the reasons for considering you a high-risk candidate. Do not open a new credit account unless it is necessary, and make sure that the accounts you already have are positive.
Also Read: Factors Affecting Credit Score
You now know how to get a 900 credit score. Considering the ways, working towards a 900 credit score takes patience and discipline. But the benefits you unlock along the way make it more than worthwhile. It is about building trust with lenders & ensuring financial responsibility.
Here are some rewards:
1. Better Terms & Lower Rate of Interest: A higher score qualifies you for the attractive loan offers. You get lower EMIs with long-term savings.
2. Your negotiating power: You hold the upper hand with lenders. Be it a credit card balance transfer or an instant personal loan, a high score helps you.
3. Best insurance premiums: Many insurers consider credit history when they price their policies. A 900 score often results in lower insurance expenses.
4. Higher capacity for borrowing: Banks & NBFCs will extend larger loans to people with good repayment habits.
5. Additional perks on purchases: A higher credit score comes with unexpected advantages – starting from skipping deposits on rentals to getting discounts on appliances.
Because the concept of having a 900 credit score rating does interest people. However, little is understood that the concept of having such a high score is not attainable in models such as FICO or VantageScore. However, strive to achieve the highest possible score within the model that your lenders follow, and the best score accorded to each model is 850 points.
The information about the things that can contribute to a high credit score should enable you to obtain a high score that will reap several benefits. Do not forget that although a high credit score is defined by certain digits, it is all about the possibilities you can get. Whether you are planning to get into the 850 club or just planning to improve your credit score, it’s good credit habits that will help you succeed.
Concentrate on what you can do to improve your credit—paying your bills on time, not having too many credit card balances, and checking your reports—and you’ll be all set for financial prosperity.
It is possible to reach a 900 credit score. But very few individuals achieve it. It is a result of years of constantly good financial habits & on-time payments. Patience as well as responsible credit behaviour help you attain this.
A 900 credit score is the highest rating on the CIBIL scale. It usually ranges between 300 & 900. One who repays on time & practices good financial habits will have a flawless repayment record. The individual can manage the credit responsibly.
A 900 score can be considered outstanding. It’s the maximum credit score one can achieve. This rating helps you gain access to the best loan offers. You get speedier approvals & attractive interest rates.
A 900 score ensures that lenders that you are a responsible borrower. Banks reward this with lower interest rates & higher borrowing limits. Applying for personal loans or home loans helps you get the best terms with this score. You can use a personal loan EMI calculator to know the rates better.
A 900 CIBIL score usually shows great creditworthiness. Lenders think you can consistently repay on time. Lenders view these individuals as trustworthy. This results in speedier loan approvals & larger credit offers with better opportunities.
Download our personal loan app to apply for a personal loan. Get up to 2Lakhs* as a personal loan. Download Now!
Sign into avail a personal loan up to ₹ 2,50,000
Unifinz Capital India Limited is a Non Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). lendingplate is the brand name under which the company conducts its lending operations and specialises in meeting customer’s instant financial needs.
RBI CMS
RBI Sachet
