CIBIL Score Explained: Your Creditworthiness Fingerprint

What is CIBIL score?

The CIBIL score, also known as the CIBIL TransUnion score, is a three-digit number ranging from 300 to 900 that reflects your creditworthiness in India. Its essentially a summary of your credit history, based on factors like your repayment behavior, credit card usage, and number of inquiries about your credit.

Here's how it varies

A three-digit number ranging from 300 to 900 that reflects your creditworthiness in India

High Score (750+)

Excellent creditworthiness, indicating timely repayments and responsible credit management. This score gives you access to the best loan deals and interest rates.

Good Score (700-749)

Good creditworthiness, suggesting a strong track record with occasional minor issues. Youll qualify for most loans and credit cards with fair interest rates.

Average Score (650-699)

Average creditworthiness, with some blemishes like delayed payments. Loans may still be available, but with higher interest rates or stricter terms.

Below Average Score (550-649)

Below-average creditworthiness, indicating potential repayment risks. Loan applications might get rejected, or youll face high interest rates and limited options.

Low Score (300-549)

Poor creditworthiness, suggesting significant defaults and financial mismanagement. Getting loans or credit cards becomes very difficult.

Loan Eligibility

A good score increases your chances of getting loan approvals, while a low score can lead to rejections.

Interest Rates

A high score qualifies you for lower interest rates, saving you money over the loan term. Better scores unlock premium credit cards with rewards and benefits.

Insurance Premiums

Some insurance companies consider your CIBIL score for determining premiums. Maintaining a good CIBIL score is crucial for smoother financial transactions and access to better financial products.

Remember

You can get your free CIBIL score once a month from the official website or partner platforms. Regularly check your credit report for errors and dispute them if necessary. Practice responsible credit behavior by making timely payments and managing your credit wisely.