The Credit Information Bureau (India) Ltd assigns CIBIL scores and CIBIL reports to individuals. A CIBIL score is a three-digit number. The score falls between 300 (lowest score) and 900 (highest score). The credit score depicts creditworthiness of the person. The credit bureau takes into account at least 6 months of financial data of a person to calculate his/her CIBIL score. The data is weighed across 258 variables, each with unique algorithm to analyze the credit journey of the person, before a CIBIL score is finalized.
A higher CIBIL score suggests responsible repayment behaviour and a good credit history, and vice-versa. In layman’s term, a CIBIL score is summary of a person’s credit history in a numeric value. You can get FREE CIBIL SCORE, if you request it for the first time in a year. CIBIL offers free credit score once in a year upon request. And at Loanbaba, you can check your credit score for free as many times you want to without any cost.
Here is the weightage to major factors that comprise credit score calculation:
If you do not want to make a hard enquiry into your credit history, then there is no need to pay any fee to check your CIBIL Score.
If you request for your own CIBIL report there is no negative impact on your credit score. It is considered as a soft check. Also, checking CIBIL score for FREE does not negatively impact your score. This way, you can check your credit score as many times you want to in a year. So if you want check CIBIL Score on your own request, or for free, then do not think twice, we are here to help you.
Only a hard check can have some impact on your CIBIL score. A hard check takes place when you apply for a credit card/loan, and your lender checks for your credit report or score. This is why you must not make too many loan applications at a time. Every lender will then check your credit report.
The Credit Information Bureau (India) Ltd (CIBIL) sources financial data (such as credit card and loan information) of individuals from leading banks and financial institutions in India. This information is used to prepare credit report of the person. The individual is assigned a CIBIL score as per his/her credit behaviour. The financial data of the person reflects in the CIR (Credit Information Report), also known as CIBIL credit report.
A CIBIL score ranges between 300 and 900. People with CIBIL score of 750 and above are considered as responsible with loans and credit card payments. Check your Free CIBIL score on Loanbaba today to know your latest credit score. Below-given is a detailed brief about different ranges of CIBIL scores.
If your CIBIL score shows as NA/NH, it means that you have no credit history. NA means ‘not applicable’ and NH means ‘no history’. This could be the case if you had never taken a loan or used a credit card. It is advisable to build your credit score by taking credit, either in form of a loan or credit card.
If your CIBIL score falls in between 350 and 549, then your credit score is considered as bad. It depicts that you have not paid EMI or/and credit card bills on time, turning into a defaulter. Thus, your creditworthiness takes a hit and the lender may not approve a loan for you.
If you have CIBIL score 550 to 649, then it is considered as a fair credit score. This score means you struggle to pay the dues on time. In such an instance, only few lenders may offer you credit. Even if a loan is approved, it may come with a higher rate of interest. If your credit score lies in this range, you need to take measures to improve it so as to get better deals on loans.
If your CIBIL score lies in between 650 and 749, it means that you are taking the required efforts to boost your credit score. If you continue with timely repayments and display good credit behaviour then gradually your CIBIL score will also increase. Banks and NBFCs may consider the prospect of giving you a loan. But, your credit score is still not high enough to bestow you with negotiation power for the best interest rates or terms on loans.
If you have CIBIL score between 750 and 900, then you are doing all the right things to win the trust of lenders. It means that you pay loan EMIs and credit cards bills on time. You have a clean track record regarding past and ongoing payments. An impressive payment history encourages banks and NBFCs to readily approve your loan. This is because a high CIBIL score ensures lenders that you may pay the dues on time and not turn into a defaulter. With such a credit score, you can expect the lowest interest rates, flexible terms and conditions on any loan offer.
An ideal CIBIL score that lenders look for is 750 and higher. It is important to have a high credit score when you apply for a credit card or loan. You should keep a track of your credit history from the start of the year. On Loanbaba, you can find your current CIBIL Score for free. This will help you discipline your financial behaviour, enhance credit score, and in turn increase chances of getting a loan approved easily. Below-given are some of the tips to maintain a healthy CIBIL score:
Here are the CIBIL Score FAQs:
Credit Information Report (CIR) or CIBIL report is a document. It comprises of information about all the borrowings and repayments you have made in the past and ongoing currently. Thus, a CIR is a list of all your credit-related financial transactions as well as the CIBIL score. On the other hand, a CIBIL score (ranges between 300 and 900) is a rating that is determined on the credit information data and other variables that impact your financial journey.
A CIR includes your payment history, outstanding balances of loans, number of loans, details of all the loans taken from different lenders, total of credit limit, and relevant details. It also contains information of defaults, write-offs, settlements, and other credit-related occurrences. A CIBIL report acts as a report card of your credit behaviour.
A high CIBIL Score means you are creditworthy enough to take a new loan. With a good credit score, banks perceive you as the best candidate to lend money. This is because; you probably may not default on payments. A low CIBIL score forces banks to reconsider their decision of giving you a loan, as you pose a risk of defaulting on repayments. You can check Free CIBIL score on Loanbaba to understand your creditworthiness.
Banks and NBFCs submit your credit related transaction details to CIBIL every 30 days to 45 days. A small lender may share this information with CIBIL on a quarterly basis. The details will include your outstanding balances, payments made, delayed payments, etc. The CIBIL will then process this data to prepare/update your credit report and CIBIL score.
So, if you get your CIBIL report within 45 days of paying the dues, then the report may not necessarily be updated with this payment detail. In such a case, the report may present incorrect detail about amounts due or current balances.
Financial institutions can now analyze the creditworthiness of new borrowers. This has been possible after the launch of CIBIL Score 2.0. Here, people with credit history of less than 6 months are ranked on their credit behaviour. The risk index is from 1 (being the highest) to 5 (being the lowest). This credit ranking system helps banks/NBFCs in India to evaluate a potential borrower and the possibility to lend or not.