How to Get a Perfect 900 Credit Score? | 5paisa (2024)

What is a 900 Cibil Score?

CIBIL, or Credit Information Bureau (India) Limited, collects the credit payment information of individuals and assigns a 3-digit credit score ranging from 300-900. The 900 cibil score is referred excellent and implies an impeccable repayment history.

Lenders prefer applicants with higher CIBIL scores because it indicates they are responsible borrowers. If your score is 900, you will get easy approval on loans and credit cards with the best interest rates and terms. This score is hard to achieve, but maintaining good financial habits can help build your CIBIL score.

12 Ways To Get A 900 CIBIL Score

Here are some proven ways to get a perfect 900 CIBIL score:
1. Make All Payments On Time
Timely repayment of credit card bills as well as loan EMIs is vital. Even a single default can drastically bring down your score. Set payment alerts to avoid missing due dates. If you cannot pay the full amount, pay the minimum due amount on time.
2. Maintain Low Credit Utilization Ratio
Using more than 30% of your total available credit limit can negatively impact your score. Keep the utilization as low as possible on all your cards and loans.
3. Build a Long Credit History
A longer credit history with responsible usage helps build a higher score. Avoid closing old cards, as the length of credit history counts.
4. Limit Hard Inquiries
Every application for credit results in a hard inquiry on your report, lowering your score slightly. Limit credit applications to only essential needs.
5. Review Credit Reports Regularly
Check credit reports from CIBIL at least annually for errors or fraudulent transactions that could bring down your score. Dispute any inaccuracies found.
6. Become an Authorised User
If you have a family member with excellent credit, becoming an authorized user on their card can help build your score. Their good behavior will be reflected in your report.
7. Mix Types of Credit
Have a good mix of both installment loans (home, auto, personal) and revolving credit (credit cards) to improve your credit mix. Avoid having only one type.
8. Increase Credit Limits
A higher credit limit with low utilization shows better management of debt. Request credit limit increase periodically from your lenders.
9. Automate Payments
Set up autopay for at least the minimum due on all bills directly from your bank account to avoid missed payments.
10. Avoid Debt Settlement Offers
Debt settlement or credit repair offers to remove negative information for a fee seem tempting but don't work. They are usually scams that can worsen your situation.
11. Consolidate High-Interest Debt
If you have too much high-interest debt, consolidate it through a balance transfer to a low-interest card or a debt consolidation loan to repay faster.
12. Let Time Work
Negative marks like late payments stay on your report for 7 years. Your score can gradually improve as this history fades if you demonstrate responsible behavior.

Following these steps consistently can help anyone build and maintain an excellent CIBIL score over time. Let's look at the key benefits of having a 900 credit score.

The Benefits of Having a 900 Credit Score

Achieving a 900 CIBIL credit score has several advantages:

• Almost guaranteed loan and credit card approvals
• Lowest interest rates on financial products
• Higher credit limits on cards and loans
• Waived fees on credit cards and loans
• Increased bargaining power for better terms
• Priority processing and servicing by lenders
• Ability to rent houses/apartments easily
• Shows high financial trustworthiness
• Peace of mind and financial freedom

In short, a 900 cibil score unlocks the best of what lenders offer. The higher score signifies lower risks for them; hence, you get the most attractive rates and packages.

CIBIL Score Range: What Does It Mean?

Before we look at how to boost your score from 800 to 900, let's understand what the different CIBIL score ranges indicate:

• 750-900: Excellent. Highest chance of loan/card approval with best terms.
• 700-749: Very Good. High chance of approval with good terms.
• 650-699: Good. Decent approvals with average terms.
• 600-649: Fair. Increased risk but may get approved.
• 500-599: Poor. Very few approvals. If yes, then high rates.
• 300-499: Very Poor. Rejected applications.

A score above 750 is generally considered good enough to get approved for most credit products. But only 900 ensures lightning-fast approvals with the lowest rates, fees, and best rewards. Also, you must be aware of all the 900 credit score benefits.

Strategy to Boost Cibil Score from 800 to 900

It takes diligent effort over time to climb from an already good credit score of 800 to an exceptional 900. Here is a strategic plan to boost your score those final 100 points:

1. Pay bills 5-7 days before the due date - This builds an even longer perfect payment history
2. Get added as an authorized user - To supplement your history with another person's flawless track record
3. Limit hard inquiries - Apply conservatively, spacing out applications by 6 months
4. Get a credit limit increase- To keep utilization ultra-low, below 10% if possible
5. Don't close old accounts- Retain your longest active accounts to build vintage
6. Review reports meticulously- Verify every detail to detect errors immediately
7. Mix up the credit types- Judiciously take an installment loan to diversify credit mix
8. Sign up for credit monitoring- To monitor and protect your credit 24/7 from fraud

Practice the tips already discussed: Automate payments, don't settle debts, consolidate cautiously, etc. It requires rigorous credit management over 2-3 years to reach 900 from 800. But it is well worth the effort to unlock the cheapest credit rates and terms for many years.

5 Things Affecting Your Credit Scores

Be aware of these 5 common things that can negatively impact your credit ratings:

• Delinquent Payments- Missing payments drastically lowers the score. Even 30-day delays count.
• High Balances- Maxing out cards or maintaining high limits hurts scores. Keep it low.
• Hard Inquiries- Every application causes an inquiry. Too many in a short period damages scores.
• Short Credit History- Thin or inconsistent history increases risk. Build vintage with time.
• Credit Mix- Only having credit cards and no installment loans is seen negatively. Diversify types.

Avoid these missteps, and vigilantly follow positive habits to build your score. Monitor it regularly to catch any drops before they do major damage.

Conclusion

Achieving the perfect 900 CIBIL credit score is a milestone denoting exemplary financial responsibility. While scores above 750 are considered excellent, only 900 guarantees the lowest interest rates and best rewards. Building up to 900 takes diligent effort over the years, but is worthwhile for unlocking lifetime financial benefits. Following responsible credit behaviors like paying bills on time and keeping balances low is key.

Avoid negatives like excessive inquiries or delinquent payments. Monitor your score regularly and take corrective action if needed. Use credit judiciously and develop good financial habits to reach and maintain that coveted 900 score. So take charge of your credit now and start your journey towards super-prime lending offers!

• Customer Due Diligence
• Anti Money Laundering
• What Does a Zero or Negative Credit Score Mean?
• Minimum CIBIL Score for Personal Loan
• Minimum CIBIL Score for Home Loan
• Minimum CIBIL Score for Car Loan
• How To Repair A Bad CIBIL Report
• How to Remove Your Name From the CIBIL Defaulter List?
• How to Get a Perfect 900 Credit Score?
• How to Check CIBIL Score Using PAN Card?
• Good Credit Score in 2024
• Commercial CIBIL Report
• What is CKYC?
• What is KYC?
• What is RTGS (Real Time Gross Settlement)?
• What is NEFT (National Electronic Funds Transfer)?
• What is IMPS?
• Canara Bank Netbanking
• Bank Timings in India
Read More