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CIBIL Score

credit score, or CIBIL score, is a 3-digit numerical score representing your creditworthiness. This score indicates how well you manage your credit. In simple terms, this score helps lenders determine whether you will be able to repay the loan in the given tenure or not. Higher the score, higher are your chances of loan or card approval.

A credit bureau calculates this score depending on your credit history and mix, among other factors, and ranges between 300 and 900. The most common bureau in India is TransUnion CIBIL. Apart from that, CRIF High Mark, Experian and Equifax are a few other bureaus responsible for calculating credit scores in India.

Read through the following sections to get a clear idea of the CIBIL score and how it is checked.

How to Check My CIBIL Score?

You can check your CIBIL score through Bajaj Markets for free. Additionally, you can also visit the official website of TransUnion CIBIL to get a free credit score. You simply need to follow these steps:

1. Check CIBIL Score Through Bajaj Markets

  • Step 1: Vist the Bajaj Markets website. 

  • Step 2: Click on 'Check CIBIL Score'.

  • Step 3: Enter a few personal details, such as your employment type, name, PAN, mobile number, date of birth and more

  • Step 4: Click on 'Get OTP'.

  • Step 5: Agree to the terms and conditions.

  • Step 6: Enter the OTP sent to your registered mobile number.

Upon verification of details, you will be able to view your free credit score.

2. Check CIBIL Score Through TransUnion CIBIL

  • Step 1: Visit the TransUnion CIBIL website. 

  • Step 2: Click on 'Get Your Free CIBIL Score'.

  • Step 3: Enter your personal information, such as name, ID number, date of birth and more. In this step, you are also required to create an account by providing a strong password of your choice.

  • Step 4: Click on 'ACCEPT & CONTINUE'.

Upon verification, you will get your free CIBIL score.

What are the Details Required to Check CIBIL Score?

To check your CIBIL score, you must provide some basic details. These include:

  • Your personal information, such as name, address, date of birth, mobile number and more

  • Type of employment, i.e., whether you are salaried or self-employed

  • Your monthly income or annual turnover

  • Your PAN

Why is your CIBIL Score Important?

In a nutshell, your credit score provides a snapshot of your credit health. It indicates the lenders and lets them understand whether you are a responsible borrower or not. Considering these parameters, knowing your credit score is crucial because:

1. It helps you know your credit status

When you receive your credit report, you get to know your standing pertaining to your credit. It is a summary of your past and present credit transactions. By checking this score at regular intervals, you can avoid any discrepancies and work towards improving your score.

2. It makes you eligible for loans.

This is yet another importance of credit score. Lenders usually consider a good CIBIL score as one of the primary eligibility factors for loans. In this regard, a credit score of 750 and above is considered ideal. Thus, if you maintain a good credit score, your chances of availing a loan become higher.

What is the CIBIL Score Range?

While learning about credit score, it is essential to know that every other individual falls under different categories depending on his/her score. In this regard, one may have a good or bad CIBIL score. Here is a tabular representation of the CIBIL score range:

750 or more

Very good

701-750

Fair

601-700

Low

300-600

Very low

*Note that the CIBIL score range in the above-mentioned table is indicative and may vary from one bureau to another.

 

CIBIL Score Range

 

Click to check more details about different CIBIL Score Range.

Will Repeated CIBIL Inquiry Affect my CIBIL score?

There are two types of CIBIL inquiries, namely:

  • Hard inquiry

  • Soft inquiry

When you check your credit report, it is considered a soft inquiry, whereas when a credit card issuer or a lender checks your credit report, it is called a hard inquiry. Typically, soft inquiries do not hamper your credit score. However, if done over a short span, multiple hard inquiries can significantly hurt your CIBIL score.

What are the Benefits of a Good Credit Score

Maintaining a healthy credit score is beneficial for borrowers due to the following reasons:

  • One of the primary advantages of a good credit score is that it increases your eligibility to avail of loans. Some financial institutions might even offer you pre-approved offers if you have a high credit score.

  • With a high credit score, lenders might offer you a loan with a lower interest rate. This is because you have already established that you are a responsible borrower.

  • Apart from the lowered interest rate, you might ask your lender to increase the loan tenure.

How is Credit Score Calculated

Credit bureaus consider several factors before calculating your credit score. Here are a few factors that affect your credit score:

  • History of loan repayment

Timely loan repayment can boost your credit score significantly. At the same time, if you default on your loan repayments, your credit score will fall. 

  • Age of credit history

The age of your credit history is another crucial factor affecting your CIBIL score. If you have availed of credit cards or loans for a long time and have repaid them consistently, you will have a high credit score.

  • Credit utilisation ratio

It is the percentage of the credit limit that you use every month. Ideally, you should not use more than 30% of your credit card's limit to maintain a healthy credit score.

 

Other factors affecting your CIBIL score are:

  • Hard inquiries

  • Credit mix

Why is your Credit Score Low

Your credit score might be low due to various reasons, such as:

  • Irregular credit card or loan repayment

  • Missed EMI payments

  • No credit history

  • Too many unsecured loans

  • Multiple hard inquiries

  • The discrepancy in credit report

How to Improve Your Credit Score

If you have a low credit score, you do not need to worry, as there are a few ways through which you can improve it. They include:

  • Pay your dues

This is the most important step to improving your credit score. Consider paying all your debts on time to improve your credit score gradually.

  • Review your credit report at regular intervals

Checking your credit report at least once a year helps you keep a tab on your open and closed credit accounts. In addition, it also helps you address any discrepancies.

  • Avoid taking too many loans at the same time.

Such behaviour depicts that you are credit hungry and negatively impacts your credit score.

  • Maintain a good credit mix

A mix of unsecured and secured loans shows that you can handle both types of loans. This increases your creditworthiness.

Why Do Lenders Check Credit Scores

The credit score is a common eligibility parameter when you apply for loans. Having said that, when lenders run a credit check, they try to assess what kind of a borrower you are. In this regard, your credit history helps them know how well you have managed loans and credit cards in the past. 

Thus, irregular debt payments and maxed-out credit cards might pose you as a risky borrower, hampering your creditworthiness.

How do you Check your CIBIL Score with an Aadhaar Card

While you can provide your Aadhaar Card for checking CIBIL score as an ID proof on the CIBIL website, at present, it is not possible to check your CIBIL score using Aadhaar Card only. Since your credit score is linked to your PAN card, you need to provide your PAN to check this score.

What is the Difference between Credit Reports, Credit Scores and CIBIL Scores

Credit score and CIBIL score exhibit the same definition. However, the credit score that TransUnion CIBIL provides is called the CIBIL score. Apart from that, you can check your credit score through other bureaus, which include Experian, Equifax and more. 

Now, a CIBIL score is different from a report, given the fact that CIBIL or credit score is just the numerical representation of your creditworthiness. On the other hand, a credit report contains comprehensive credit details.

Why Should You Check Your Credit Score via Bajaj Markets

Bajaj Markets allows you to check your credit score for free by following a few simple steps. You simply need to visit the official website and navigate to the check your CIBIL score section. The process is extremely simple and convenient.

Moreover, since TransUnion CIBIL powers the function, you can stay assured of the data being authentic.

List of credit bureaus in India

The RBI provides licences to four credit bureaus to operate in India. They are:

Frequently Asked Questions

  • ✔️What is CIBIL score?

    CIBIL score is a 3-digit numerical representation of your creditworthiness. It helps determine lenders whether you are a responsible borrower or not.

  • ✔️Why is a credit score important?

    A good credit score is important because it shows that you are a responsible borrower and would pay your credit on time without defaulting. It increases your chances of loan application approval.

  • ✔️ Is checking credit scores on third-party websites safe?

    It is absolutely safe to check your credit score via Bajaj MARKETS, as TransUnion CIBIL powers it.

  • ✔️ How long does it take to improve your credit score?

    Improving a low credit score is a gradual process. Thus, when starting the process, you should remember that the change will not happen overnight. You will have to follow healthy practices for months until you see results.

  • ✔️ How can you maintain a good credit score in India?

    You can maintain a good credit score by making timely due payments, having a good credit utilisation ratio, not defaulting on loans and keeping a good credit mix.

  • ✔️ What can be considered a good credit score?

    The credit score ranged between 300 and 900. Typically, most lenders consider a score of 750 or more ideal.

  • ✔️ Can I get my CIBIL score for free?

    Yes, you can get your CIBIL score for free through credit bureaus' websites. Alternatively, most third-party websites also offer free credit scores.

  • ✔️What is the minimum CIBIL score to get a personal loan?

    Most lenders would demand a CIBIL score of 750 or more to disburse a personal loan. Thus, you should aim to keep a high credit score before applying for personal credit.

  • ✔️How can I increase my CIBIL score quickly?

    There is no shortcut to increasing your CIBIL score quickly, as the process is gradual and might take months. However, you can review your credit report and see for any discrepancies. If found, you can report the same to the credit bureau to increase your credit score quickly.

Latest CIBIL Score News

Women emerging as strong borrower class, better credit profile, lower delinquency rates: TransUnion CIBIL

Studies conducted by CRIF HighMark and TransUnion CIBIL reveal that Indian women are fast surfacing as a credible class of borrowers, boasting of improved credit profiles and lesser rates of attrition. This trend has been consistent among women in both urban pockets and the rural hinterlands– a positive sign for all to acknowledge.

What’s more, over the last five years, the market composition of women borrowers has risen sharply at a 19% compound annual growth rate – in comparison to the male equivalent of the statistic pegged at just 14%. To further fuel this argument, statistics reveal that women borrowers in India grew by 11% in 2021 alone, while male borrowers grew only by 6%.

When we analyse credit penetration, the statistic for women as a percentage of borrowers rose significantly, from 6% in 2016 to 12% in 2021. Over the course of the year, women seem to have opted for loans in 3 categories - consumer durables, gold, and personal loans.

The studies suggest that women in India also boast of an improved score distribution, with 53% having a ‘prime score’ (between 731 and 770), while the share of male borrowers for the same lay at just 47%. The attrition rate is also lower among women (5.2%) than men (6.9%).

The studies reveal that women are also increasingly availing home loans, business loans, auto loans, and personal loans, with their share in new-to-credit loans rising to 21.2% in 2021.

-Mar 08,2022

TransUnion CIBIL will give first-time applicants a credit score

TransUnion CIBIL will now be able to assist lenders in determining the creditworthiness of new-to-credit (NTC) borrowers who never got the opportunity to utilize a bank or financial institution for a loan or credit card. The new service includes an algorithm that employs an adaptive machine learning system to monitor the behaviour of related data subjects over time. This, according to CIBIL, would make it easier for first-time borrowers to obtain credit.

According to their report, new-to-credit (NTC) customers can be good borrowers and form a valuable customer base for credit institutions if given credit opportunities. Institutions can dramatically scale profitable growth by tapping into the NTC market by using the NTC Score. According to the report, two-wheeler loans receive the most applications from this category, followed by consumer durables and home loans. Retail credit demand in February of this year was 91 percent of what it was in February 2020, according to CIBIL, and was slightly higher than the low levels seen in the early months of the pandemic.

Every year, 100 million first-time borrowers are expected to apply for loans, according to CIBIL

The lenders are usually reluctant to lend to someone who is applying for the first time. The reason is that the credit history of such borrowers makes it difficult for creditors to evaluate them. Credit offices have solutions to this problem, like comparing a new-to-credit (NTC) client profile with other similar profiles. According to the recent survey by TransUnion CIBIL, 100 million borrowers could be credited each year.

The survey showed that, between January 2019 and January 2021, 35% of the total transUnion CIBIL customer inquiries received from NTC customers came from people aged 26 to 35. A fourth of the inquiries were carried out by people less than 25 years of age. The majority of NTC customers took out two-wheeler lending during the same period, followed by consumer durable and home loans. The majority of the people of India are under 40 years old, and banks and financial institutions are likely to approach this demographic for their first credit or loan card.