CIBIL Score
A CIBIL Score refers to a three-digit number ranging from 300 to 900, calculated by TransUnion CIBIL — one of India's four licensed credit information companies. Banks and NBFCs widely use this score when evaluating loan or credit card applications.
How It Is Calculated
The score is derived from the individual's Credit Information Report (CIR), which aggregates data from member lenders. Primary factors include:
- •Payment history — whether EMIs and credit card dues have been paid on time
- •Credit utilisation ratio — the proportion of available revolving credit currently in use
- •Credit age — the length of the individual's credit history
- •Credit mix — variety of secured (home, car loans) and unsecured (personal loans, credit cards) credit
- •Recent enquiries — hard enquiries generated by new credit applications
Score Ranges
| Range | General Interpretation |
|---|---|
| 300–579 | Indicates significant delinquency in credit history |
| 580–699 | May indicate some past irregularities |
| 700–749 | Generally considered acceptable by most lenders |
| 750–900 | Typically associated with a stronger credit history |
What Affects the Score
Missing EMI payments, high credit card utilisation (typically above 30%), frequent loan applications within a short period, and accounts settled for less than the full outstanding amount can lower the score over time. Conversely, consistent on-time payments and maintaining older credit accounts tend to support a stable score.
Checking the Score
Individuals are entitled to one free credit report per year from each credit bureau. Checking one's own score is classified as a soft enquiry and does not affect the score. CIBIL Scores are periodically refreshed — typically every 30 to 45 days — as lenders report updated account data to the bureau.