What is CIBIL Score Range – Calculate & Check Online 2024

Is your loan not getting approved quickly? Do you need clarification about why this is happening? Have you checked your CIBIL score lately? The reason might be under a low CIBIL score range. A CIBIL score is a numerical value based on your creditworthiness and determines your credit limit and interest rates. In simpler terms, it is your credit report. Do you want to know more about it? Then, keep reading.

What is CIBIL Score Range with Example

A CIBIL Score is a 3-digit numerical value with a summary of your past credit history given by the Credit Information Bureau of India Limited (CIBIL). It is one of the four companies licensed by the Reserve Bank of India as a credit information company. The other three are Experian, Highmark and Equifax. However, CIBIL is the most popular in India. 

The CIBIL score scale or CIBIL Transunion Score ranges from 300 to 900. This number is based on your creditworthiness, credit history, credit rating and reports. Here, 300 is considered a bad rating, whereas 900 is the highest rating. 

For Example:

Mr X wants to apply for a personal loan to a bank/ financial institution. The bank will first check his CIBIL score to determine if he will be able to pay back the loan on time. Suppose Mr X’s CIBIL score comes out to be 800, which is a good CIBIL score range, given his excellent credit history. His loan will be approved quickly. 

On the other hand, Mr. Z is also looking for a good loan with lower interest rates. His CIBIL score is 400, which is a poor score. This indicates his poor credit history, which could be due to his default on a loan before. Mr Z is less likely to get a loan approved. Even if he does, his credit limit will be much lower and interest rates much higher.

How is the CIBIL Score Calculated in 2024

Certain factors are analysed to calculate the CIBIL score of a person or entity, and then a score range is assigned. These factors include the credit history, credit length, credit utilisation, credit mix and recent inquiries about the loan. These factors are then assigned specific weights, and the sum is that person’s CIBIL Score or creditworthiness. 

A CIBIL score can be calculated both online and offline. 

1. Online 

Follow these steps to calculate your CIBIL score range to check online for free. 

• Step 1: Go to the official website of CIBIL, i.e. cibil.com/
• Step 2: Click on the button that says, “Get Your Free CIBIL Score and Report Instantly”
• Step 3: Fill out your basic information such as name, phone number, email address, PAN card number, etc. 
• Step 4: Verify your identity through mobile OTP or other verification methods mentioned.
• Step 5: Once the verification process is completed, you will receive your free CIBIL score. 

2. Offline

To get your CIBIL score offline, you need to first, 

• Step 1: Open the CIBIL website and download the form. 
• Step 2: Print the form and fill out the details mentioned in the form. 
• Step 3: Attach a demand draft addressing TransUnion CIBIL for the amount INR 164 for CIBIL Report only and INR 550 for both CIBIL Score and CIBIL Report. 
• Step 4: Mail the form along with the Demand Draft to CIBIL’sCIBIL’s address, i.e., 
• TransUnion CIBIL Ltd, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013. 
• Step 5: After analysing, you will be mailed the CIBIL Report at your home. 

Different types of CIBIL Score Range in 2024

The CIBIL Score ranges from 300 to 900, with 300 as a lower score and 900 as the highest.

1. Score: NA

• Rating: No Credit History
• You have yet to apply for a loan or a credit card in the past. 
• The chances of getting a loan approved are less. 

2. Score: 300-549

• Rating: Poor
• You might be a habitual loan defaulter with many missed payments of loan EMIs and credit card bills. You are considered as a high risk in the defaulters’ list. 
• Your loan might or might not be approved. 

3. Score: 550-649

• Rating: Fair
• You might have some late payments of EMIs or credit card bills or have made multiple loan enquiries. 
• The bank may approve your loan but at a higher interest rate.  

4. Score: 650-749

• Rating: Good
• You have a history of timely payments. 
• Your loan will be approved, but you might need better interest rates. 

5. Score: 750-799

• Rating: Very Good
• You have a long credit history with timely payments. 
• You are considered a low risk. 
• You will get good deals on loans. 

6. Score: 800-900

• Rating: Excellent
• You display excellent financial management, low credit utilisation, and praise-worthy credit history.
• You are at a shallow risk for lenders
• You will get your loan approved at your terms at the best rates.

Components of Cibil Score Range in 2024

• Credit Payment History: Your payment history is one of the most crucial factors in determining your CIBIL score. Through this part, the lender can forecast whether you will default on your loan repayments or not. If you have timely payments of credit card bills or have missed paying EMIs on time, it will be reflected well in your record. It is also reported that a 30-day delay in repayment can reduce your CIBIL score by 100 points. Therefore, it is essential to pay your credit card bills and EMIs on time. 
• Credit Utilisation Ratio: It is also known as credit exposure in simpler terms. The payment history is the most significant factor that can make or break your CIBIL score rating scale. It is the ratio of credit used to the available credit limit. According to the experts, you should use 30% of your total credit limit. Using too little or too high can be considered poor financial behaviour. A result of very high usage can portray that you are struggling with finances and are likely to default in future. This could put you in a poor CIBIL credit score range. 
• Credit Type: The type of credit used plays a vital role in determining your credit score. There should be a healthy balance of both secured and unsecured loans in your portfolio. Fast loans such as home loans or vehicle loans and unsecured loans such as credit cards must be in balance. Too many unsecured loans can reflect a bad image. A healthy balance reflects that you have a good experience in handling finances. 
• Duration of Credit History: Credit history refers to the duration of time since you first opened your first credit account. A long credit history is a good thing when it comes to CIBIL score rating. It is best to start your credit history in your twenties and when you are capable of paying the EMIs. This can put you in an excellent CIBIL score range. 
• Multiple Enquiries:  Every time you inquire about a loan or credit card, the lender opens your CIBIL report from the Credit Bureau. This is registered in your CIBIL portfolio. Such enquiries are known as hard enquiries and could be better for your credit score. Therefore, when applying for loans and credit cards, you must refrain from making multiple enquiries.

Factor Affecting CIBIL Score Range in 2024

Several factors influence your CIBIL score range. They can increase or pull down your credit score. Let us find out some of the most critical factors affecting your CIBIL score.

• Length of Credit Record: The longer the credit record, the deeper and more transparent the insight. A longer credit record helps the lender evaluate an individual’s credit management skills and their intentions of paying back the loan. The lenders generally steer away from individuals who have a credit history or shorter credit history. 
• Repayment History: It is imperative to have a clean repayment history. Defaulting on payments, irregular payment history, and not clearing your credit dues are some of the things that can pull down your CIBIL score from excellent to poor. Thirty days’ delay is equal to minus 100 points. This type of negligence must be avoided at all costs. You are advised to set a reminder every month to pay your EMIs and credit card bills. 
• Debt to Income Ratio: This is one of the first things that financial institutions consider before you approve your loan. The higher the ratio, the lower the chances of acceptance of loans. A higher debt-to-income ratio indicates that the monthly EMIs overburden you. You are likely to default because of a lack of income to pay back the loan. It is advised to keep the debt-to-income ratio range between 25% to 35%.
• Errors in the CIBIL Report: Errors in a CIBIL report are more common than you think. There is a common occurrence of errors in personal information and sometimes in balance inputs. It is recommended that these errors be checked and rectified as quickly as possible. 
• Outstanding Debt: To avoid any adverse effect on your CIBIL report, you must immediately clear any outstanding debt, especially before applying for any new loan. Unpaid debts are also recorded in your credit report and contribute to a poor CIBIL score. 
• Not Paying More than the Minimum Due Amount: If you keep paying only the minimum due amount or, worse, less than the minimum due amount, you are increasing the chances of the debt trap. Only paying the minimum due amount will contribute to the compounding of interest, hence giving you a feeling that your debt is not ending. It also needs to reflect better on your credit report. 
• Credit Usage: According to the experts, a 30% credit utilisation ratio is a healthy practice for a fair CIBIL score range. Credit Utilisation Ratio is the amount of credit used to the total credit limit available. If your credit utilisation is higher, it reflects that you are credit-hungry and might default in future. It is essential to keep your credit usage under 25% to 30%. 
• Credit Mix: Credit mix is a balance between secured loans such as home loans and unsecured loans such as credit cards. Having a healthy balance between the two can increase your chances of loan approval as it shows that you have good financial management skills and are unlikely to default. 

Tips to Improve Your CIBIL Score

The cibil score is within the normal range of anywhere above 750. If you have a CIBIL score lower than this, here are the five essential steps that can help you to improve your credit score. 

• Clearing all existing debts: Having an outstanding debt can negatively impact your CIBIL score. It is essential to repay the debt within the repayment period. Clearing all your due payments on time can also improve your CIBIL score.
• Paying EMIs on time: Delays in EMI payments are a big no-no! You must pay your EMIs before the said time. If you have a habit of forgetting, set up an online automatic payment of EMI. 
• Limit your Credit Usage: Keep your credit utilisation between 25% and 30%. If you can’t maintain this limit, make sure that you don’t exceed your credit usage by half of your income. 
• Rectify any errors in the CIBIL Report: Check your credit report frequently. There is a chance of errors in your personal information or balance sheet. Having an error-free and transparent credit report also increases your CIBIL score range. 
• Maintain a mix of credit instruments: You should have a mix of both secured and unsecured loans in your credit portfolio. This reflects great financial management skills and experience in handling credit.

What is the CIBIL Report?

A CIBIL report is a credit report prepared by the Credit Information Bureau of India Limited (CIBIL) or CIBIL TransUnion. It has a summary of your credit account to date. It is an essential instrument in the financial market that helps financial institutions determine your creditworthiness and grant loans accordingly. A CIBIL report or credit report includes information such as the record of your credit history, repayment pattern, times of default or late payments of loans or EMIs, outstanding debts, etc.

How Do I Read My CIBIL Report?

A CIBIL report is a comprehensive record of your credit history. It contains personal information, records, data sets, and various other information that helps banks and other lenders assess your creditworthiness. To understand your CIBIL Report, you need to have proper clarity on the components of the reports, such as CIBIL Score, Account Information, Inquiry Information, etc. 

A CIBIL Score’s best range is between 750 to 900. A good CIBIL score can get your loans approved faster. If your score is closer to 900, the lender will have more confidence in your ability to pay back the loan. The CIBIL score ranges between 300 and 900, and a rating is given based on these scores. If the score section has NA or NH, it means you have no credit history. 

After the CIBIL Score, you have your personal information section. This section contains basic information such as your name, gender, date of birth, PAN number, Driver’sDriver’s License, Aadhaar Number, etc. 

The Contact Information section has all the addresses you have resided in before, as well as mobile numbers and email addresses. You can add up to four addresses in this section. 

The Employment Information has the information about your occupation and income derived from it. If you are a salaried employee, the data is constantly updated as you move from one company to another. 

The Account Information segment contains all the active bank accounts, credit cards, loans, etc., you can avail yourself of. The opening date, last transaction, last payment of EMI, and payment overdue are available on a monthly record for up to 36 months. There is a yellow box in the accounts section that shows disputed information. The Enquiry Information shows every time the lender has accessed the credit report when you have made enquiries about the loan.

How will Your Credit Score Impact Your Borrowing Process?

Your credit report is a go-to place for financial institutions to check your creditworthiness before approving your loan. Your credit score determines whether you should be given the credit or not. Financial institutions usually prefer a CIBIL score range above 750. If you have a CIBIL score lower than the determined limit, banks can reject your loan application. 

What to Do if You Don’t Have a CIBIL Score?

If your CIBIL score is NA or NH, it may be due to the absence of credit history. There are specific actions that you can take to build your credit history. For example, apply for a credit card. A credit card is the easiest way to start your credit history. You can use it to make small purchases. You can also consider a credit builder loan. These loans are specifically designed to establish credit limits. They usually have a low borrowing amount that allows you to save money while building a credit history. You can also diligently pay your utilities bill on time to create a positive payment history. Also, if you have a friend or family member with a fair credit score, you can get yourself added as an authorised user on their credit card. Finally, remember to check your CIBIL credit report regularly.

Importance of Maintaining Good CIBIL Score in 2024

A CIBIL Score is the most essential tool for both the lender and the borrower. 

• A CIBIL score helps the borrower in finding out his credit status. According to this score, he can decide the conditions of his loans and negotiate for a better interest rate. If his CIBIL score could be improved, he could work on increasing it by adopting good financial practices. 
• If a person has an excellent credit score of 900, the bank can grant him a loan at a meagre interest rate and minimum documentation. 
• A good credit score can also help to provide more favourable loan terms and high borrowing limits. 
• Having a good credit score is a good indicator of excellent and responsible financial management. It can create a sense of security among the lenders.

Characteristics & Features of CIBIL Score 

1. Characteristics of CIBIL score

Here are some of the characteristics of CIBIL scores:

• Credit Utilisation: It keeps track of the amount of credit you have used that is outside of your total credit limit. 
• Payment History: It has a complete monthly record of your payment history for up to 36 months. Late payments of EMIs can pull down your credit score significantly.
• Credit History Duration: The longer the credit history, the better the loans. It also signifies that you have a good experience in credit management skills. 
• Credit Type: CIBIL score involves transactions of different types of credit such as cards, loans, mortgages, etc.
• Credit Inquiries: Multiple inquiries within a short period can decrease your credit score and could be better for your portfolio.

2. Features of CIBIL score

Some of the features of a CIBIL score include:

• Credit Assessment: It indicates an individual’s credibility based on their credit behaviour and history. 
• Numeric Representation: A CIBIL score is represented as a three-digit number ranging from 300 to 900. 
• Credit Report Data: The data in the credit report is created on the data based on payment history, length of credit history, credit utilisation, etc. 
• Risk Evaluation: A CIBIL score facilitates the lenders in assessing the risk associated with passing the loan. 
• Decision Making: Banks/ financial institutions use the CIBIL score to offer the type of loans and the percentage of interest rates associated with it.

Advantages & Disadvantages of CIBIL Score

1. Advantages of CIBIL Score

If you have a good CIBIL score, you are entitled to the various benefits. For example:

• Accessible Credits: A good CIBIL score will help you to get better and easier conditions for getting loans. 
• Quick Approvals: If you have a good credit score, it increases your creditworthiness. Hence, your loan can be processed as early as possible. 
• Low Interest Rate: A high CIBIL score can get you a loan at comparatively lower rates than usual. 
• Better Negotiation: A good CIBIL score offers you better negotiation authority with the lenders. 

2. Disadvantages of a Low CIBIL Score

A poor CIBIL score can increase your problem when applying for loans. 

• Loan and Credit Card Rejection: Banks want to avoid risking their money with someone with a low credit score. A low credit score is an indication of low creditworthiness. 
• High-Interest Rates: A lousy score directly reflects your inability to pay back loans. Therefore, the bank charges higher interest. 
• High Insurance Premium: There is an indirect relationship between a bad CIBIL score and insurance claims. 
• Conditional availability of utility services and rental issues: A person with a low CIBIL score might have to deposit the value upfront to access essential utilities such as mobile phones or electricity. Even a person looking for a rental apartment might have to make a more extensive security deposit before renting the apartment.

Conclusion

Hence, a CIBIL score range is more than just a rating to show an individual’s creditworthiness. It influences financial decisions, facilitates better lending practices and paves the way for the long-term financial stability of the financial market.

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.