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A credit score of 850+ is generally categorised as exceptional in the country. It brings benefits beyond favourable loan terms and premium credit cards. The individuals who have such high credit scores and a solid repayment history on credit card bills and home loans are provided lucrative offers by lenders on various loan products.
Akshay Aedula, Product and Growth, CRED, says “Beyond the obvious, a strong credit score can unlock higher loan limits, faster approvals, and eligibility for premium credit cards. Many employers have a credit score cutoff for onboarding team members. In peer-to-peer engagements, credit score is often used as a proxy for trustworthiness. Landlords in other countries, and increasingly in India, often ask for it to screen prospective tenants. A high credit score can even lead to ‘good driver discounts’ on insurance premiums on platforms.”
Hence, keeping the above factors in mind, it is clear that a strong credit score goes far beyond personal loan approvals. Beginning with better job prospects to insurance benefits, an exceptional score signals trustworthiness and reliability.
Here are four surprising perks of an 850+ credit score that signify its growing relevance in day to day financial and personal life.
1. Easier access to premium credit products
A credit score of 850+ denotes minimal borrowing risks and in most cases qualifies the individual for pre-approved personal loans or credit cards with minimal paperwork and quicker decision making. Financial institutions frequently extend offers directly reducing application hassles and encumbrances.
2. Lower interest rates and processing fees
Lending institutions routinely provide preferential rates of interest potentially saving several percentage points on interest rates over the entire loan repayment period. Borrowers can also benefit from discounted or waived processing fees and enjoy reputable negotiation leverage on large credit lines i.e., high personal loan amounts.
3. Higher limits, longer tenures, and reward upgrades
With an exceptional score, sincere repayment profile borrowers often qualify for large loan amounts, flexible repayment periods along with enhanced credit limits on credit cards. Even prominent credit card issuers provide premium reward programmes, concierge services, airport lounge access and lucrative cashback deals.
4. Professional and lifestyle perks beyond borrowing
Employers or landlords might view an 850+ credit score as a mark of financial responsibility. Such a high credit score can go a long way in strengthening rental or job applications. Leading insurers in some international markets also offer lower premiums to individuals with exceptional credit, though this practice is in the developmental stage in the country.
Given borrowing on easier terms, flexible repayment options are the most obvious benefit of an 850+ credit score, hidden rewards range from premium credit products and fee savings to lifestyle advantages. Ensuring that you maintain an excellent credit score is increasingly significant for broader financial flexibility and everyday convenience.
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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
