25+ credit cards and a CIBIL score above 800

Recently, in my #Carpool, the conversation drifted to one of my favourite topics: #CreditCards.
While I was suggesting a card to one of the carpoolers, another person sitting behind asked:
“How many credit cards do you have?”
“Over 25 active cards.”

She was shocked.
“But what about your CIBIL Score?”
800+

Now she was even more surprised.
“How is that possible?”

And that led to a conversation about how #CreditScores actually work.
It is influenced by several factors:
1️⃣ Payment history
Pay your dues on time and in full.
This is one of the most important factors.
In my case, I have almost two decades of clean credit history.
2️⃣ Credit utilisation
How much of your available credit are you using?
Lower utilisation is generally better.
Keeping it below 30% is a commonly used guideline, but it isn't a magic number.
3️⃣ Age of credit history
A longer, well-managed credit history generally helps.
Two decades of clean history definitely helps me here.
4️⃣ New credit enquiries
Having 25+ cards doesn't mean I applied for 25 cards yesterday.
They were accumulated over many years.
A couple of enquiries occasionally isn't the same thing as repeatedly applying for credit in a short period.
5️⃣ Credit mix
Having a mix of secured and unsecured credit can also influence your score, although its impact is much smaller

Then came the next question:
“So what should I do to get my score above 800?”
I had to explain something important:
Credit Score is NOT an Exam.

You don't get extra marks for scoring 850 instead of 800.
A score above 750 is generally considered strong enough for access to credit from most lenders. Your exact eligibility and interest rate will still depend on the lender and your overall profile.

And then came another question:
“You keep saying Credit Scores; is that different from a CIBIL score?”
Had to explain the four major credit information companies India has:
• TransUnion CIBIL
• Experian
• Equifax
• CRIF High Mark

'Where can I check my Credit Score?'
Several apps offer credit-score access, including #CRED and #GooglePay.
You can also access your credit report directly from the credit bureaus. Regulations provide consumers access to a free full credit report once a year from each bureau.

And what if something is wrong?
Don't ignore it.
Raise a dispute with the credit bureau and the financial institution that reported the information.
If the information is inaccurate, it can be investigated and corrected.

#MoneyMinusNoise
So don't overthink about your credit score while applying for a new Credit Card, if you need one. What matters more is your Credit Behaviour!
Build a clean Credit History.

If you are having issues with your Credit Score or want to understand more about it, feel free to reach out.