What Does a CIBIL Score of 753 Mean?

A CIBIL score of 753 is in the “very good” range for credit scores. But what does that really mean? How does your credit score affect your chances of getting loans and credit cards in India? This article will tell you everything you need to know about a CIBIL score of 753.

First, let’s start with some background on CIBIL scores. CIBIL stands for Credit Information Bureau (India) Limited, and it is India’s largest credit information company CIBIL collects data from banks and financial institutions about individual’s credit accounts, payment histories, loans, and other information. This data is used to calculate a three-digit CIBIL score between 300 and 900 for each individual.

Lenders use CIBIL scores to help evaluate creditworthiness and make lending decisions. In general the higher your CIBIL score the better your credit profile. Those with higher scores are seen as less risky borrowers.

CIBIL scores are calculated based on five main factors:

• Payment history (35%): Your history of on-time or late payments on credit accounts.

• 30 percent credit utilization means the ratio of your current credit balances to your total available credit limit.

• Credit mix (10%): The variety of credit accounts you have, such as loans, credit cards, etc.

• New credit applications (10%): How frequently you apply for or open new credit accounts.

• Credit history length (15%): How long you’ve been using credit.

Now let’s look specifically at what a CIBIL score of 753 means.

What is a “Very Good” CIBIL Score?

CIBIL scores ranging from 750 to 799 are considered “very good.” This means your credit profile demonstrates responsible use of credit and timely repayment of debts. A score of 753 is above the average CIBIL score in India, which is somewhere in the 600s.

Here’s an overview of the different CIBIL score ranges:

• Poor: 300-599
• Fair: 600-699
• Good: 700-749
• Very good: 750-799
• Excellent: 800-900

With a CIBIL score of 753, you fall into the top 25% of borrowers in India. This means you are seen as lower risk by lenders compared to those with lower scores. You likely have a solid history of managing credit, making on-time payments, and keeping credit balances low compared to limits. Missed or late payments on your credit history are rare or nonexistent.

Benefits of a 753 CIBIL Score

Having a CIBIL score of 753 can help you get loans and credit in a number of ways. Here are some of the key benefits:

• Easier loan and credit card approval: With a score in the very good range, you are much more likely to be approved for loans and credit cards compared to those with fair or poor scores.

• Lower interest rates: Lenders will often offer lower interest rates to borrowers with better CIBIL scores. This means you pay less over the lifetime of loans and credit cards.

• Higher credit limits: Lenders will sometimes approve applicants with very good scores for higher credit limits on cards and loans. This provides greater purchasing power and flexibility.

• Better terms: In addition to lower rates, lenders may offer borrowers with a 753 CIBIL score better terms on loans and cards, like lower fees, no annual fees on cards, and more.

• Ability to secure large loans: Very good scores open access to large loans like home loans, car loans, and business loans. Applicants need strong scores to be approved for high-value loans.

• It shows that you can be trusted with money: A 753 CIBIL score shows lenders that you are good with money and credit. This opens doors for your financial needs.

How to Use a 753 Score to Your Advantage

Now that you understand the meaning and benefits of a 753 CIBIL score, here are some tips for using it to your advantage:

• Leverage it for rate discounts: When applying for loans or cards, ask lenders if they offer discounted rates for applicants with CIBIL scores above 750. Many lenders provide incentives for borrowers with very good scores.

• Negotiate better deals: Use your 753 score as leverage when negotiating the interest rates, fees, and terms of loans and credit cards. A very good score strengthens your position to ask for the best possible deals.

• Apply for premium cards: Use your 753 score to qualify for premium credit cards with generous rewards programs, signup bonuses, and benefits. A very good score makes approval easier.

• Get fee waivers: Ask credit card issuers to waive annual fees given your strong 753 CIBIL score. Issuers want to retain and reward their lowest risk customers.

• Securing loans: Apply for larger loans required for major life steps like buying a home, car, or financing a business. A 753 score will help secure approval for big-ticket loans.

• Earning trust: Highlight your very good 753 score to demonstrate your financial responsibility and trustworthiness as a borrower. This can help strengthen business relationships.

Maintaining and Improving Your 753 Score

While a CIBIL score of 753 is very good, there’s still room for improvement. Here are some tips to maintain or increase your 753 score even higher:

• Keep balances low: Maintain credit utilization below 30% on each card and across all cards. High balances hurt scores.

• Pay on time, every time: Don’t miss payments as this severely impacts scores. Set up autopay if needed.

• Limit new applications: Apply for new credit selectively, as too many new accounts can lower scores temporarily.

• Allow credit history to age: Give your credit history time to grow, which gradually helps increase scores.

• Correct errors: If you spot errors on your CIBIL report, dispute them promptly to maximize scoring accuracy.

• Review reports regularly: Check CIBIL reports a few times a year to monitor your score and catch errors early.

• Practice healthy habits: Using credit responsibly over time will support improving an already very good CIBIL score.

The Takeaway

A CIBIL score of 753 is in the very good credit score range, meaning you have demonstrated responsible credit management. This score makes it easier to access credit and loans with better terms and benefits. Continue practicing healthy credit habits to maintain or improve your score further. Monitor your credit report regularly and use your very good score to negotiate advantages with lenders.