CIBIL Score -1 - Everything You Need To Know (2024)

FAQs

What do I need to know about CIBIL score? ›

CIBIL Score is a 3-digit numeric summary of your credit history, rating and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating is. What does credit history and credit report mean in CIBIL? When you want a loan you must ask yourself what is my CIBIL score?

A good CIBIL Score is a score between 700 to 900, which means the borrower has a higher chance of getting a higher loan amount at a low-interest rate.

The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report). A CIR is an individual's credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits.

Standards may differ from lender to lender, but there are four core components — the four C's — that lenders will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.

The 5 C's of credit are character, capacity, capital, collateral and conditions. When you apply for a loan, mortgage or credit card, the lender will want to know you can pay back the money as agreed. Lenders will look at your creditworthiness, or how you've managed debt and whether you can take on more.

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

While achieving a CIBIL Score of 900 is technically possible, it is extremely rare. Scores above 760 are considered very good or exceptional, providing significant benefits such as lower interest rates and higher chances of loan approval.

Which is better, Experian or CIBIL? ›

CIBIL vs Experian - FAQs

Is Experian better than CIBIL? Both the Experian credit score and the CIBIL credit score are good and trustworthy. But the CIBIL has an advantage over the Experian score in India, as over 90% of Indian credit companies use the CIBIL score as the standard.

The minimum credit score needed to buy a house can range from 500 to 700, but will ultimately depend on the type of mortgage loan you're applying for and your lender. While it's possible to get a mortgage with bad credit, you typically need good or exceptional credit to qualify for the best terms.

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

Thus, given that someone can receive a score of 900 at the most, a figure of 800 or more on the borrower's credit report does mean that the borrower posses a excellent credit history. Scores in other ranges, on the other hand, tend to spell different things for the person whose name is on the report.

The CIBIL ™ score depends on the repayment history of the customer. So, taking a fixed deposit will not impact your CIBIL ™ score directly. But, you can always take a secured credit card against the existing FD and make timely payment of bills to improve your CIBIL ™ score.

Understanding CIBIL Score

CIBIL score is a three-digit numeric summary of your credit history that ranges between 300 and 900. A score above 750 is generally considered a good CIBIL score.

The minimum CIBIL score for a personal loan is between 720 and 750. Having this score means you are creditworthy, and lenders will approve your personal loan application quickly. They may also offer you your chosen loan amount at a nominal interest.

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

An 800 credit score is extremely powerful and highly coveted. It places you in the 'exceptional' category, which means lenders view you as a very low-risk borrower. This high level of creditworthiness allows you to secure loans and credit cards with the best interest rates and terms.