Why is CIBIL score not 900? Know the truth
If you are going to take a loan – be it a personal loan, car loan or home loan – the first thing the bank looks at is the CIBIL score. But have you ever seen a score of 900? Probably not! And that is because the CIBIL score cannot go up to 900.
What is CIBIL score?
The full form of CIBIL is Credit Information Bureau (India) Limited. It is a credit bureau that prepares the financial "profile" of the citizens of India. Your credit history starts as soon as you get a PAN card - like how many times you took a loan, whether you paid the EMI on time or not, how was the use of the credit card, etc.
Score range: 300 to 900
1) A score of 750+ is considered a "good score".
2) If your score is 800+, banks will come after you.
Is a 900 score impossible?
Yes, almost impossible. CIBIL never gives 900 intentionally – and there are many reasons behind it:
1. Possibility of human error:
- Today you may be perfect, but tomorrow a small mistake – like a late EMI – will drop the score. That’s why a “perfect score” is never shown.
2. Data is subject to change:
- Any transaction on any given day can affect the score. So giving 900 would be showing “perfection” , which is against CIBIL policy.
3. Only the ultra rich can reach 880:
- If your annual income is more than ₹250 crore and you have been paying EMIs for 10+ years without any default, then perhaps your score can reach 860-890. But still not 900.
So what should we do then?
Aim and maintain a score of 750 to 850
1) Pay EMI on time.
2) Keep credit card usage to 30-40%.
3) Don't take too many loans at once.
4) Maintain credit mix (balance of personal, vehicle, home loan).
There is no use in challenging CIBIL
If you think that “I will definitely show 900 to CIBIL”, then you will have to give a perfect report not only to CIBIL but also to international agencies like CRIF, Experian, Equifax.
