Lenders extend loans and lines of credit depending on a borrower’s creditworthiness. They use credit scores to judge whether borrowers can repay the loan. Higher the score, the better the experience you will have when availing loan. 800 score or more means you are exceptional at managing your credit and getting faster loan approvals and benefits.
In this blog, we will understand the significance of having a credit score of 800, benefits of the credit rating, and how you can boost your score. So, let us dive in.
Basics of credit score
Before we check your credit score and the benefits of credit rating, let us first understand what a credit score is. Credit scores are three-digit numbers in the 300 to 850 range. Lenders use this score to assess a borrower’s creditworthiness.
Lenders calculate credit scores using borrowers’ credit reports or credit history. Here are five key factors, along with the percentage of the score they make up for:
- Payment history (35%) shows whether you have paid your bills on time.
- Accounts owed (30%) are the credit and loans you are using.
- Credit history’s length (15%) shows how long you have been using credit.
- Credit mix (10%) is the types of credit (home loan, vehicle loan, credit cards) you have availed.
- New credit inquiries (10%) show the frequency of your credit inquiries.
Advantages of credit rating of 800 and more
Broadly, the benefits of a credit rating of 800-plus open many opportunities to avail affordable credit and other financial benefits. Let us understand in detail some key advantages of a credit rating of 800-plus:
1. Better chance at loan approval
A credit score is the representation of your creditworthiness. Higher the score, the better the chances of loan approval, and vice versa. And a credit score of 800 means you are an extremely reliable borrower who is more than likely to repay the debt. As a result, lenders are more likely to extend your loans or line of credit.
2. Higher loan amounts and lower interest rates
Lenders may lend you money even with a 600-700 credit score, but you may not get a higher loan amount and pay more in interest. But one of the biggest 800 credit score benefits is that you get your loan approved and the amount you want at lower interest rates. Even with a credit card, an 800 score opens you to a higher credit limit with lower interest rates.
3. Refinance your loans
Apart from helping you save money in interest payments, 800 plus credit score can help you refinance your existing loans. For example, if you took a loan when your credit score was low, work towards improving it. Once you reach a score of 800 or more, you can refinance your loans to lower interest rates.
4. Better offers and rewards
As you know, credit card companies offer rewards like redeemable points, cashback, discounts on fuel, etc. With a credit score of 800, you can easily qualify for a credit card with the best possible rewards.
5. Renting a house
Apart from access to better home loans, vehicle loans, and credit cards, an 800 score also helps you easily rent a house. Landlords may check your credit score to assess your payment history, and with a high credit score, you will seem to be a reliable tenant.
Check your credit score
Now you know the advantages of a credit rating with an 800 plus score, but how do you see your score? Let us explore some ways to calculate credit scores in this section.
In India, most lenders use credit scores from two credit reporting organizations – Experian and CIBIL. Both organizations use their proprietary algorithms to calculate credit scores. But both CIBIL and Experian provide scores in the 300 to 850 range. And scores above 700 are good, and above 800 are considered exceptional.
- Check CIBIL score
To check your CIBIL score, you will need identity proof and some basic details. Follow these steps to check your CIBIL credit score:
- Head to the CIBIL website and click “Get Your CIBIL Score.”
- Complete the form and click “Accept & Continue.”
- You will receive OTP on your phone number. Enter that OTP and click “Continue.”
- Now, select “Dashboard” and click on “Member Login.” Enter your credentials, and you will get your CIBIL credit score.
2. Check Experian credit score
Using Tata Capital’s online credit score checking facility, you can check your Experian credit score. Just follow these steps:
- Head to Tata Capital’s credit check page and click on “New Customer.”
- Complete the form and click “Submit.”
- You will receive an OTP on your phone number for verification.
- And that’s it, there is your Experian credit score.
Note: Existing customers of Tata Capital must select “Existing Customer” on the credit check page. They will receive an OTP when entered will reveal their Experian credit score.
Boost your score to get the advantages of a credit rating
The benefits of a credit rating of 800, like fast loan approval, higher credit limit, and lower interest rates, enable you to meet your financial obligations and attain financial stability. So, if you fall short of an 800-credit score, the benefits are too good not to try to improve your score. Here is how you can boost your score and take full advantage of your credit rating:
- Paying bills on time is the best way to boost your credit score. Automate recurring payments and bills using autopay facilities to avoid missing any payments.
- Lower your credit utilization by using not more than 30% of the available credit limit.
- To boost your credit score, you need a credit history. So, try and take a mix of secured and unsecured loans and repay them on time to build a positive credit history.
The advantages of a credit rating of 800, like easy loan approval, higher credit limit and lower interest, come in handy when you need immediate funds or face an emergency. To avail of these benefits, ensure to pay bills on time, build a strong credit history, and avoid exhausting your credit limit. Even when you attain an 800 score, continue to follow these practices to prevent lowering credit scores.