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Credit bureaus typically use the FICO scoring model to assess an individual’s creditworthiness and then assign them a credit score. However, the FICO scoring system only works for those individuals who have a credit history. This means that people with no credit history will not be able to get a loan or a credit card if their creditworthiness is assessed using the FICO scoring model. In order to assess the creditworthiness of those people with no credit history, TransUnion has introduced a new credit scoring system known as the CreditVision scoring model. Most credit agencies nowadays use this model along with the traditional scoring system. Read on to know more.

How is CIBIL Credit Vision Score Different From Other Scoring Models

When using traditional scoring models to assess the creditworthiness of a borrower, credit bureaus base it on the former’s current credit situation. This means that only an individual who has taken a loan and/or is using credit cards can get a credit score if assessed as per the FICO scoring system.

On the contrary, the TransUnion CreditVision scoring model considers various other kinds of data to assess the repayment capability of a borrower with no credit history. Once that data is taken into account and a trend is established, a person with no credit history can also be assigned a credit score. This means that people with no borrowing history will also be able to get a loan or a credit card in times of financial emergencies.


Popularity-wise, the TransUnion CreditVision scoring model is also being used to analyse the creditworthiness of individuals with a borrowing history now. Here, unlike in the case of the FICO scoring system, CreditVision analyses the credit behaviour exhibited by the borrower in the past 24 months. Once this historical data has been analysed, the borrower with the established credit history is assigned a credit score.


The CreditVision scoring model was built with the intention of helping banks and non-banking finance companies (NBFCs) make better lending decisions. The new scoring system is supposed to help lenders by giving them a better understanding of the borrower’s attitude towards credit lines.

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CreditVision Risk Score Range

After the repayment capability of an individual is analysed on the basis of the CreditVision risk scoring model, he or she is assigned a score between 300-900. The higher the credit score of the borrower, the better are their chances of getting a loan or a credit card. Typically, lenders consider a score of 700 or above to be ideal for a borrower applying for any form of credit line.

Factors Considered While Calculating the CreditVision Score

The factors that are taken into consideration while assessing the creditworthiness of an individual with no borrowing history are as follows:

  • The frequency at which they receive money into their bank account

  • Their income tax returns

  • Their ongoing subscriptions (newspaper, magazine, streaming services, and the likes)

  • The frequency at which they change homes


Once this data is collated and analysed, a credit score is assigned to the individual.


On the other hand, the factors that are taken into consideration while assessing the creditworthiness of an individual with a credit history are as follows:

  • Loans they have taken in the past

  • Their repayment history

  • The frequency of prepayment/credit card bill payments

  • The number of hard inquiries made against them by lenders


The CreditVision credit scoring system collates the aforementioned data and then establishes a trend of credit behaviour based on the past 24 months. After the same is analysed, the person is given a credit score.

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Factors That Affect CreditVision Scores Negatively

The factors that affect CreditVision scores of an individual negatively are as follows:

  • High Credit Utilisation Ratio: 

The credit utilisation ratio of an individual can be defined as the percentage of credit available to them that has been used. If the individual has used more than 40% of the credit available to them, it is said that their credit utilisation ratio is high.

  • Missing EMI/Credit Card Payments: 

Delayed loan EMI payments or credit card bill payments negatively impact the CreditVision score of an individual. The longer the delay in payment, the greater the fall in the credit score.

  • Closing Old Credit Cards: 

Closing credit cards which have been active for years essentially means that the borrower is erasing a part of their credit history, which will have a negative impact on one’s CreditVision score as well.

  • Multiple Loan Applications: 

When one applies for a loan or a credit card, the lender pulls up his or her credit information report from rating agencies such as CIBIL. Whenever a lender does that, it is recorded as a hard inquiry in the credit report. Too many such hard inquiries are considered to be an indication of credit-hungry behaviour, which also causes a reduction in one’s CreditVision score.

How to Improve the CreditVision Score

One can improve their CreditVision score in the following ways:

  • Make Timely Payments: 

When an individual pays their loan EMIs and credit card dues in a timely manner, it eventually improves their CreditVision score.

  • Keep a Low Credit Utilisation Ratio: 

Lenders recommend that an individual must keep their credit utilisation ratio under 30% if they either want to improve their CreditVision score or maintain a healthy one.

  • Prepay Loans/Credit Card Dues When Possible: 

Individuals can either prepay their loans or credit card dues when they have extra funds to improve their CreditVision score. Loan prepayments are recorded in credit information reports and are considered to be an indicator of responsible credit behaviour. Additionally, loan/credit card prepayments also bring down the credit utilisation ratio of an individual.

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