795 Credit Score: Is It Good or Bad?

A 795 credit score generally indicates great financial management and repayment history. It places you in the ‘very good’ or ‘excellent’ category across most credit rating systems. The score reflects a history of responsible borrowing, consistent payments, and a well-maintained credit utilisation ratio. 

In India, credit scores are generated by bureaus like Experian, Equifax, CRIF High Mark, and TransUnion CIBIL. Different credit bureaus use varying score ranges and criteria for evaluation. The score calculated by TransUnion CIBIL is one of the most widely used scores across the country. So, what does having a CIBIL score of 795 mean? Generally, it indicates that you are an ideal borrower, often eligible for favourable borrowing terms. Here’s how a 795 score is generally classified by various bureaus in India:

Having a 795 credit score opens doors to numerous financial benefits. Here’s how it works in your favour:

Low Interest Rates

Lenders and credit card issuers offer low interest rates for individuals with high credit scores. A 795 CIBIL score ensures you qualify for competitive rates, whether for personal loans, home loans, or car loans.

Credit Card Offers

A credit score of 795 often qualifies you for various top-tier credit cards. These usually come with premium features like lounge access, reward points, cashbacks, and exclusive discounts.

Preferential Loan Terms

Lenders are more willing to offer flexible repayment schedules, minimal documentation, and quicker processing to borrowers with high credit scores.

Negotiation 

A CIBIL score of 795 strengthens your position when negotiating loan terms or credit card features with lenders. This can help you borrow the required funds at low interest rates, over longer tenures.

Favourable Insurance Premiums

Insurance providers may consider your credit score when calculating premiums. A high score like 795 could lead to discounted rates.

Emergency Credit Availability

You are likely to receive pre-qualified offers for personal loans or lines of credit, providing financial security during emergencies.

Higher Chance of Loan Approval

A 795 credit score is good and increases the likelihood of your loan applications being approved. This makes borrowing hassle-free and efficient.

Maintaining a CIBIL score of 795 requires constant financial discipline. Here are actionable tips to maintain and possibly improve your score:

Make Timely Payments

Ensure all EMIs and credit card bills are paid before the due date. Even a single missed payment can impact your score.

Monitor Credit Utilisation

Keep your credit utilisation ratio below 30%. A lower ratio signals better financial management.

Regularly Check Your Credit Report

Review your credit report periodically to identify and dispute any inaccuracies or errors promptly.

Avoid Excessive Credit Inquiries

Minimise new credit applications unless necessary. Too many hard inquiries within a short period can lower your score.

Maintain Credit History Length

Keep older credit accounts active, as they contribute positively to the length of your credit history.

Diversify Credit Types

A balanced mix of secured and unsecured credit, such as a combination of credit cards and loans, can improve your creditworthiness.

Reduce Outstanding Balances

Pay off high-interest loans or credit card dues to maintain a low debt-to-income (DTI) ratio and protect your score.

Use Pre-approved Offers Judiciously

Leverage pre-approved loans or credit card offers that align with your needs but avoid over-borrowing.

A 795 credit score reflects a strong credit profile and responsible financial behaviour. It ensures access to a range of premium financial products, lower borrowing costs, and better terms from various issuers/lenders across India. To maintain this level of excellence, focus on timely payments, monitor your credit report, and keep your credit utilisation low. With consistent financial discipline, you can sustain and leverage your score for long-term financial growth and stability.