840 Credit Score: Is it Good or Bad?

An 840 credit score is considered excellent or exceptional by most credit bureaus, highlighting your impeccable financial management and creditworthiness. According to TransUnion CIBIL, it is categorised as good, while Experian regards it as exceptional, and both Equifax and CRIF High Mark classify it as excellent. An 840 CIBIL score positions you as a preferred borrower, granting access to premium financial products, competitive interest rates, and exceptional borrowing terms.

Here’s how an 840 credit score is classified across India’s credit bureaus:

An 840 CIBIL score reflects outstanding creditworthiness, though its interpretation varies slightly among bureaus. While TransUnion CIBIL categorises it as good, other bureaus rate it as exceptional or excellent. Lenders are likely to offer the best loan terms and highest credit limits to individuals with this score.

An credit score of 840 unlocks numerous advantages, making it easier to achieve financial goals:

1. Instant Loan Approvals

Lenders consider this CIBIL score to represent minimal risk, ensuring faster and smoother loan approvals

2. Access to the Lowest Interest Rates

Borrowers with an 840 credit score qualify for the lowest available interest rates on personal, home, and car loans

3. Eligibility for Ultra-premium Credit Cards

An 840 CIBIL score opens the door to exclusive credit cards offering high rewards, travel perks, cashback, and concierge services

4. High Credit Limits

Lenders are more inclined to approve the highest credit limits, giving you exceptional financial flexibility

5. Priority Banking Services

Many financial institutions offer customised solutions and priority services to individuals with an 840 credit score

6. Lower Insurance Premiums

Certain insurers factor in credit scores when determining premiums, and an 840 CIBIL score can lead to the lowest possible rates

7. Negotiation Power

With an 840 credit score, you have significant leverage to negotiate favourable loan terms, such as reduced fees or extended repayment periods

While this score is already exceptional, maintaining it requires consistent financial discipline.

 

Here’s how:

Avoid Unnecessary Credit Applications

Limit credit applications to avoid multiple hard inquiries, which can temporarily lower your 840 score

Retain Older Credit Accounts

Long-standing accounts with a positive history add to your credit age, which benefits your 840 CIBIL score

Diversify Your Credit Portfolio

A mix of secured loans (like home loans) and unsecured loans (like personal loans) reflects responsible credit management

Pay All Bills on Time

Continue making timely payments on all credit card bills, EMIs, and utilities to preserve your credit score

Monitor Your Credit Report Regularly

Check for errors or discrepancies in your credit report and resolve them promptly to protect your CIBIL score

Maintain Low Credit Utilisation

Use less than 20%-30% of your total credit limit. For instance, if your credit limit is ₹1 lakh, spend ₹20,000 to ₹30,000 or less.

Reduce Outstanding Debt

Paying down any remaining debts can further improve your debt-to-income ratio, helping to sustain your 840 credit score

An 840 credit score is a hallmark of excellent credit health, offering unparalleled financial opportunities. Despite slight variations in classification across bureaus, an 840 CIBIL score guarantees access to ultra-premium credit cards, competitive interest rates, and customised loan terms. 

 

By staying consistent with timely payments, maintaining low credit utilisation, and monitoring your credit report, you can preserve or even improve this top-tier score for continued financial success.