CIBIL Score Ranges and Criteria Explained

Your CIBIL score, issued by TransUnion CIBIL, is a three-digit number that reflects your creditworthiness. The CIBIL score ranges from 300 to 900, with higher scores indicating better credit health and reliability as a borrower. 

 

Financial institutions such as banks and NBFCs use this score to assess your creditworthiness and decide on loan approvals. Maintaining a good CIBIL score gives you access to credit more easily and secures better terms. 

 

Factors such as repayment history, credit utilisation, duration of credit history, and experience with different types of credit facilities impact your score. While each credit bureau uses different credit scoring models, the factors that impact your score remain more or less the same.

The CIBIL score ranges from 300 to 900 and plays a crucial role in determining your eligibility for loans and credit cards. A higher score indicates stronger creditworthiness, often leading to faster approvals and more favourable terms.

Understanding where you fall within this range can help you establish a credit goal and adopt sound financial habits to enhance your profile over time. The following table outlines the different score ranges, their meanings, and the likelihood of approval: 

Lenders consider your CIBIL score a key indicator of your creditworthiness when evaluating loan applications. Your CIBIL score influences not only loan approval but also the borrowing terms offered by lenders. Here's how different credit score ranges typically impact your borrowing experience:

• 800 and Above

This is the best CIBIL score range, showing strong financial discipline and a history of timely payments. You are highly likely to get loan approvals with nominal interest rates and pocket-friendly terms.

• 740 to 799

This is a very good credit score range and indicates responsible credit management, sufficient experience with credit, and a long credit history. You can access most credit products at competitive rates with your desired loan amounts. 

• 670 to 739

This is a good range to be in, but there is room for improvement. It means you may be creditworthy, but lenders are likely to check your profile in detail. The loan terms and interest rates you get may be slightly higher, but your application has a good chance of being approved. 

• 580 to 669

This is a fair score that shows some risk. You may get higher interest rates, lower loan amounts, and shorter tenures. By utilising credit judiciously and lowering your existing debt, you can increase your score over time. 

• 300 to 579

A score in this range signals high risk. Loan approvals are unlikely, and you may need to work on improving your credit habits. This may be due to not paying your bills on time or defaulting on loans or credit card payments.

• Below 300 (NA/NH)

CIBIL score NH means no credit history or no recent credit activity. Lenders may require additional documents to assess your eligibility.

Your CIBIL score is crucial in helping lenders assess your creditworthiness. Whether you are applying for a personal loan, home loan, or credit card, your score greatly influences approval chances and borrowing terms. Below is an overview of how different CIBIL score ranges affect your borrowing experience:

• Excellent CIBIL Score

Lenders consider you a very low-risk borrower. You are more likely to receive quick approvals, higher loan amounts, and the most competitive interest rates. Pre-approved loan offers and premium credit cards are also commonly available in this range.

• Good CIBIL Score

This reflects strong and responsible credit behaviour. Loan and credit card approvals are generally smooth, although interest rates may be slightly higher compared to those with an excellent score.

• Fair CIBIL Score

While you may still be eligible for credit, lenders are likely to assess additional factors such as income stability and employment history. You may face higher interest rates and lower credit limits. Continuous improvement in credit habits is advisable to access better terms.

• Poor CIBIL Score

This score range indicates high credit risk. You may experience loan rejections or be offered credit at unfavourable terms, such as high interest rates or the requirement of a guarantor. At this stage, improving credit behaviour is essential for future financial access.

Enhancing your credit score takes consistent effort over time. Here are some key practices to help you build and maintain a strong credit profile:

• Manage Credit Cards Wisely: Keep your spending within 30% to 40% of your credit limit and pay bills in full and on time

• Repay Promptly: Timely payments of loans and credit card bills help you maintain a healthy CIBIL score

• Apply for Credit Sparingly: Limit the number of credit applications to avoid frequent hard inquiries, which can lower your score

• Build a Long Credit History: Maintain older credit accounts to lengthen your credit history and boost your score

• Review Your Credit Report Regularly: Check your credit report for errors and dispute inaccuracies to keep your score high

• Borrow Different Kinds of Credit: Maintain a mix of secured and unsecured credit to demonstrate credit management skills