Numerical expression of credit history from credit files judges your creditworthiness. CIBIL score is calculated on your credit report, set on specific algorithms. At least 6 months of historical financial data is taken into account to obtain a CIBIL score.
A CIBIL score can vary between 300 and 900, the latter considered the best. Here is an explanation to different CIBIL scores.
People with no credit history creation through loans or credit card are given the score of 0. To create a CIBIL score, you must consider taking a loan or start a credit card transaction.
This score is said to be bad, which also means that you have defaulted in payments, and chances of receiving credit cards or new loans are limited.
You are deemed as a person who has a fair share of CIBIL score that is you may be making regular payments, and can be trusted with credit cards and new loans. Your loan application may get approved
You are doing well, and will not face many difficulties in getting a loan or credit card. Sticking to this credit habit is advisable to reach a better score.
If you fall in this score range, means you are a mastermind of your finances, and are regular with your credit card payments and maintain a sound payment history. Any lender, bank, NBFC will be prepared to trust you with loans at such a score.