CIBIL Score Ranges

Your CIBIL score from 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 like banks, NBFCs use this score to assess your capacity to repay credit and determine loan approvals based on it. Maintaining a good CIBIL score gives you access to credit more easily and secure 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 information company uses different credit scoring models, the factors that impact your score remain more or less the same. 

Understanding the best CIBIL score range can help you set a goal for yourself and take the necessary steps to get there with the right credit management habits.

The credit score range you fall in determines how easily and quickly your loan or credit card application is approved. The following table outlines the different score ranges, their meanings, and the likelihood of approval: 

When you apply for a loan or a credit card, every bank or NBFC checks your credit score to assess the risk you pose. If your score is in the good credit score range, you are likely to get the most competitively priced loan or a premium credit card. 

 

Here is a breakdown of the different score ranges and how they impact your application for a credit facility:

• 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)

This indicates no credit history or no recent credit activity. Lenders may require additional documents to assess your eligibility.

The minimum CIBIL score required for different credit facilities depends on the policies of the financial institution. However, for unsecured loans, lenders may offer favourable terms if your CIBIL range is above 750. Similarly, for secured loans like car loans, you may get access to pocket-friendly terms if your CIBIL score is above 700. 

 

Here is how your score range significantly influences various aspects of the loan borrowing process.

• Loan Approval: Scores in the higher range increase the likelihood of loan approval, while lower scores may lead to rejections

• Interest Rates: Applicants with scores in the best ranges are often offered loans at lower interest rates, reducing the overall cost of borrowing

• Loan Amounts: A strong score can qualify you for higher loan amounts, whereas a lower score may restrict the amount you can borrow 

• Repayment Terms: Favourable credit scores can lead to longer tenures that offer more flexibility during repayment, while lower scores may lead to shorter tenures and higher EMIs

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: Keeping your spending within 30–40% of your credit limit and pay bills in full and on time

• Repay Promptly: Timely payments of loans and credit card bills help maintain a strong track record

• Apply for Credit Sparingly: Limit 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: Take both collateral-free and secured loans to showcase your experience in managing all types of credit