Average CIBIL Score: What it is and How to Improve

Many people only discover the importance of their score when facing rejection or higher interest rates. But knowing the average CIBIL score—and how you compare—can help you make better decisions, rebuild your profile, and unlock better financial opportunities.

The CIBIL score is a three-digit numerical representation of your credit history. It is calculated based on the information contained in your CIBIL Report, also referred to as the Credit Information Report (CIR). The CIBIL score is provided by TransUnion CIBIL Limited, one of the major credit information companies in India.

CIBIL scores range from 300 to 900, with higher scores indicating stronger credit profiles. Lenders use this score to assess how responsibly you handle credit and repayment obligations. Understanding the average CIBIL score can help you apply smartly and improve the score if needed.

The average CIBIL score in India typically falls in the range of 621-700, which is considered good. A higher score improves your chances of getting loans easily, at better interest rates. Most banks and financial institutions check your CIBIL score before approving any loan or credit card.

The table below explains what each score range means and your chances of loan approval:

Note: Credit score ranges and categories may vary between different credit bureaus.

A good CIBIL score makes it easier to get loans and credit cards with better terms. By following a few simple, consistent habits, you can steadily improve your score over time. Here are some easy ways to do it:

• Always Pay Your Dues on Time:

Paying your loan EMIs and credit card bills before the due date shows you are a responsible borrower. Regular, on-time payments help build a positive credit history and improve your CIBIL score. An average credit score often reflects missed payments. To improve your credit standing, ensure timely payments by planning your finances well and setting up automatic payments.

• Keep Credit Card Balances Low

Try to use less than 30% of your total credit limit on your cards. A lower credit utilisation ratio shows lenders that you can manage credit wisely without relying too heavily on it.

• Maintain a Good Mix of Credit

It is helpful to have secured loans like a home or car loan and unsecured credit like personal loans or credit cards. A balanced credit profile improves your score and shows financial stability.

• Apply for New Credit Cautiously

Avoid applying for too many loans or credit cards within a short time. Too many applications can negatively affect your score.

• Monitor Co-Signed and Joint Accounts

If you have co-signed, guaranteed, or hold joint accounts, keep track of their repayments. Any missed or late payments by the other person will also affect your credit CIBIL score.

• Check Your Credit Report Regularly

Review your CIBIL report at least twice a year to make sure all information is correct. If you find any errors, raise a dispute and get them fixed to avoid problems in future loan approvals.

By following simple habits like paying bills on time and keeping your credit utilisation low, you can gradually improve your CIBIL score. To stay credit-ready and make smarter financial decisions, check your CIBIL score easily and access tips to improve it on Bajaj Markets.

Here are the loan products that you can get on Bajaj Markets from various lenders: