Maximum CIBIL Score

CIBIL Score, the assessment tool the financial institutions rely upon to gauge the creditworthiness of the prospective borrower, ranges from 300 to 900. Here 900 is considered the maximum CIBIL Score indicating robust financial health. Aiming at maintaining a credit score range between 750 and 900 will enable easy access to any kind of credit facility.

CIBIL Score Maximum Limit

The introduction of the concept of credit scores way back in 2000 facilitates the assessment of the creditworthiness of the prospective borrowers before extending a loan facility. This is one of the due diligence exercises to ensure the safety of the investment made by financial institutions. 

CIBIL awards score based on the credit history information provided by financial institutions from time to time. The credit score range will be 300 to 900. 300 is considered the lowest credit score, while 900 is the maximum Credit Score. A credit score of 750 is the minimum Score for loans. An individual with a credit score closer to 900 is the most sought after candidate and will be provided with the best interest rates with the hope that he/she will avail of the loan facility. A good credit score is crucial to get a credit card and loan applications faster and at a lower rate of interest.

What is the Maximum CIBIL Score? 

Credit Rating in India was introduced to reduce the stress of evaluating the creditworthiness and repayment capacity of a customer who approaches financial institutions for a loan. CIBIL is the credit information bureau that collects information about the credit history of a customer from financial institutions across the country to compose the Credit Report of individuals. A Credit Score is then allocated based on the information in the Credit Report. The Score mainly depends on the payment history, the number of loans, balance in the mix of unsecured and secured loans, credit utilisation ratio, etc.

The credit score range is between 300 to 900. The better your credit history is, the closer you will be to the CIBIL Score maximum limit, i.e., 900. Though the desired CIBIL Score for Personal Loan is 750, it will be highly appreciated if the Score is between 750 and 900. It is vital that you maintain the credit score closer to the maximum CIBIL Score in order to get faster approval for loans and with the power to negotiate for better interest rates and concessions in service charges like processing charges, prepayment charges, etc.

If you are in the pursuit of getting closer to the maximum possible CIBIL Score then, CIBIL Score check free periodically becomes essential. It will help you to be prepared for approaching the bank for big-ticket loans like home loans and will also give you the advantage of pre-approved personal loans. You can access websites that enable soft inquiry of credit scores free of cost. The best site to check credit score is the official website of CIBIL itself.

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CIBIL Score Range

CIBIL Score is the numeric representation of how creditworthy you are. The Credit Report contains the Credit Score along with your credit profile and repayment record. The Credit Score range will be between 300 to 900. It is the credit score range that determines whether or not you are eligible for a particular loan. The maximum CIBIL Score for a loan is 650 to 750, depending on the nature of the loan. 

Maintaining a good score can be advantageous for various reasons if you have the intention of availing of a loan at any point in the future. The banks exercise due diligence to ensure the repayment capacity and financial discipline of a loan applicant. Credit Score Range is one such factor that the lenders render maximum importance to. Various credit score ranges that define levels of creditworthiness are given below:

750-900: This range is considered an excellent range and indicates that you are a highly creditworthy person with excellent financial management acumen. The chances of loan approval are the greatest for this score range.

700-750: The creditworthiness will not be doubted a bit as this range is considered a very good score. In fact, the maximum CIBIL Score required for personal loan is 750 by most of the lenders, and the scope of loan approval is very high.

650-700: The CIBIL Score required for a home loan which is a secured loan, is 650 to 750. This Score, though considered good, may not provide you with the advantage of quick personal loan approval. 

600:650: This range is not considered feasible as your creditworthiness will have scaled-down drastically. The chances of approval of a loan are very bleak unless you put an effort to improve your cibil Score before approaching the bank for a loan.

Below 600: This instils a lot of doubt with regard to your repayment capacity and your financial health. Your credit report will contain details of written off and settled accounts. With such a financial background, it will be highly difficult to get approval for a home loan.

Maximum CIBIL Score for Home Loan

Home loans are big-ticket loans provided for construction or purchase of a new house, purchase of a flat, repurchase of a house/flat, home improvement, renovation/extension of the existing house, balance transfer, etc. There are various aspects that are verified and considered to ensure the repayment of the home loan within the stipulated time. CIBIL Score is one such primary factor that easily indicates the repayment behaviour and the creditworthiness of the applicant. 

Credit Rating in India is done by Credit Rating Agencies like Experian, Equifax, TransUnion CIBIL and CRIF. CIBIL Score is the one that most financial institutions prefer owing to the length of the existence of TransUnion CIBIL.

CIBIL Score indicates your past repayment behaviour, the EMIs you are already paying, the number of home loan enquiries you have made in the past, etc. The score range will be 300 to 900, and the CIBIL Score maximum limit is 900. If you have reached the maximum possible CIBIL Score, you will be the most eligible candidate for the loan in the opinion of the lender. You will then be lured with various benefits so that you will be compelled to avail of the loan from the lender. 

However, the CIBIL Score required for a home loan will be 650 to 750, and if your Credit Score is within this range, you will have good chances of approval of the loan without any hitch.

Additional Reading: How to get instant loan without cibil?

Maximum CIBIL Score for Personal Loan

Personal loans are immediate solutions to come out of a financial crisis. The loan will be provided for various purposes like meeting the education expenses of self or children, for planning a wedding, buying any gadget, for planning a vacation, etc. But the lenders do a thorough financial capability check. For verifying your creditworthiness, lenders rely on the CIBIL Score that is based on your repayment behaviour, credit profile and credit utilisation.

The maximum CIBIL Score required for Personal Loan will be 750 and above. The closer you are to the maximum CIBIL Score of 900, the more preferred you will be as the prospective borrower. With a higher score, you will also have the benefit of pre-approved loans with your existing banker. These pre-approved loans will be credited to your account immediately on placing a request vide internet banking. You will have access to emergency funds whenever in need.

Additional Reading: Check Cibil score for SBI personal loan

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Maximum CIBIL Score required for a Credit Card

If you intend to apply for a credit card, your first step should be to check CIBIL Score by PAN Card. Besides income and employment, financial institutions insist on a good credit score. A CIBIL Score is the only convenient tool available for financial institutions to rate the credibility of a customer.

A credit card application with a CIBIL Score range of 750 and 900, the Score considered excellent is the one most preferred. The maximum CIBIL Score stipulated for a credit card is 750 and above. 

CIBIL Score calculation is done based on the information in the credit report, and that is the reason a higher score indicates a robust financial health and repayment track and is preferred by the banks/other financial institutions.

If your credit score is below the benchmark level, draw a Credit Report online and identify the reasons due to which the Score has come down. Sometimes even discrepancies like accounts that you have not initiated are included in the Credit Report. The same loan account mentioned several times or identity theft could be reasons for the dip in the Score. You can get the inaccuracies corrected by disputing the same with appropriate authorities. You can then apply for the loan when your Score meets the minimum CIBIL Score criterion.

Additional Reading: Check Cibil score for SBI credit card

How to Improve Low CIBIL Score?

CIBIL Score will range from 300 to 900 and indicates the credibility of the customer with regard to repayment behaviour and financial stability. The ideal Score will be 750 to 900, and the maximum CIBIL Score for the loan will be 650 to 750, depending on the nature of the loan. The CIBIL Score required for home loan will be 650 to 750, whereas the CIBIL Score for Personal Loan and Credit Card will be 750 and above.

If you check CIBIL Score for Credit Card before applying, you observe that your Score has reduced. You should draw a Credit Report online and check for the reasons for this decrease. There could be various reasons for the decrease like

  • Payment of EMIs with delay or pending EMIs
  • A disproportionate mix of loans with the number of unsecured loans on the higher side.
  • Credit Card Utilisation ratio beyond 30% impacting the Score negatively.
  • New loan accounts opened frequently.
  • Too many loans and credit card enquiries within a short gap.
  • Fraudulent transitions, duplication of accounts, change in name and address, etc.

Once you have understood the reason, you will have to do the following to increase the Score:

  • Clear all loans and credit cards overdue.
  • Start paying the loan EMI on time.
  • Restrain from paying the minimum amount due but make efforts to clear the entire liability as per the credit card statement every month.
  • Reduce the utilisation of credit cards and avoid utilisation of the cash limit on the credit card.
  • Reduce the number of unsecured debts by paying off as many loans as possible.
  • If inaccuracies are traced, raise a dispute immediately and get the issue resolved.

Periodical monitoring of your credit score is essential to maintain on the top Score throughout,

Additional Reading: What is cibil grievance?

Importance of Credit Score to Applying for a Loan

A good Credit Score is a key to your financial reputation. The first factor that the banks/financial institutions would look into is your CIBIL Score when you apply for a loan. A financial record is expected as the financial institutions intend to avoid any risk of default in the future.

So if you need quick approval for any kind of credit facility, including credit card, the one thing you should keep in mind is to approach the bank only when you have a credit score within the expected maximum Cibil Score level of 750 to 900. Strive for the maximum possible CIBIL Score if you want quick approvals with various advantages like low interest, concessional processing fees and additional freebies on Credit Cards.

Additional Reading: How to get loans for low credit score?l

FAQs

✅Can I get a home loan if my CIBIL score is 650?

The CIBIL Score required for home loan will be 650 and above. You will be eligible for a home loan with a Credit Score of 650 but will be charged a higher rate of interest. If you have a credit score above 750, you can get the advantage of quicker approval and comparatively low interest.

✅Can I buy a house with a 695 credit score?

You can get a home loan to buy a house with a CIBIL Score of 695. Since a home loan is a secured loan, the CIBIL Score required for home loan is much lesser than that of a Personal Loan which is unsecured. With a CIBIL Score between 650 and 750, you will be eligible for a home loan but at a higher rate of interest.

✅How can I increase my CIBIL Score to 800?

If you have to increase the CIBIL Score to 800, you will have to cultivate some healthy financial habits.

  • Pay the loan EMIs and Credit Card dues well within the due date.
  • Do not maximise the utilisation of credit limit. Limit the utilisation to 30% max.
  • Do not withdraw cash using a credit card.
  • Strike a balance between secured and unsecured loans
  • Avoid hard enquiries of credit score.

✅How can I increase my CIBIL Score from 700 to 750?

Bring about a discipline in financial management if you want to increase the CIBIL Score from 700 to 750.

  • Continue to pay EMIs regularly. Even a single delayed or missed out EMI can lower your Score.
  • Minimise credit card utilisation.
  • Keep closure of unsecured loans as a priority.
  • Avoid multiple enquiries about loans and credit cards.

✅What should I do if my CIBIL score is low?

If your CIBIL Score is low identity, the reasons for the low Score implement some or all of the tips given below to improve the Credit Score.

  • Do not have any pending EMIs
  • Limit utilisation of credit cards.
  • Make full payment of credit card dues instead of opting for revolving payment.
  • Get discrepancies, if any, resolved as soon as possible.

✅How can I improve my CIBIL Score fast?

Follow the steps given below to improve CIBIL Score fast.

  • Dispute credit card errors immediately.
  • Get into the habit of prompt repayment of loans and credit card dues.
  • Use Credit Cards only when absolutely necessary and clear the entire dues within the interest-free period.
  • Do not have too many unsecured loans.