Published On : Mon, Apr 13th, 2020

CIBIL score ranges: What do they imply?

The CIBIL score determines your creditworthiness and it is derived using the credit history found in the CIBIL Report, commonly known as Credit Information Report (CIR). Financial institutions usually check the applicant’s CIBIL score or the credit score before approving the loan application. The CIBIL score ranges from 300 to 900, and the higher your CIBIL score, the better will be the chances of approval of your loan application. You can improve your CIBIL score gradually by making timely repayment of your existing loans, minimizing your credit utilization ratio, clearing outstanding dues and having the right credit mix. It is essential that you work towards improving your CIBIL score before applying for any kind of loan. Let us have a quick look at different CIBIL score ranges and understand what they imply.

The different ranges of a CIBIL score are mentioned below:

NA/NH: This would mean that you do not have a credit history.  If you have never availed a loan or a credit card, you won’t have a CIBIL score.

350 – 549: A CIBIL score in this range would mean that you have probably defaulted on your loans or delayed the repayment of your monthly instalments. If you happen to apply for a loan with a CIBIL score in this range, the chances of approval of the loan application would be really low. Therefore, it is advisable that you must try to improve your credit score by making timely repayment or minimizing your credit utilization ratio before applying for any credit products.

550 – 649: A CIBIL score in this range is considered to be average. This is because most lenders would consider you a high-risk applicant if you have a CIBIL score in this range. Financial institutions will hesitate in approving your loan application. However, few lenders would grant you a loan despite your average CIBIL score, but they may usually charge a high interest rate.

650 – 749:  A CIBIL score in this range is considered to be a good credit score and various lenders will offer you loans at competitive interest rates, provided you satisfy their other eligibility parameters.

750 – 900: A CIBIL score in this range is considered to be excellent. Banks and other financial institutions will consider you a low-risk borrower and would be willing to offer loans at attractive interest rates. In addition to that, if you have a credit score in this range, you can also negotiate on the interest rate levied by the lender.

Now that you have a fair idea of the CIBIL score ranges, try to maintain a CIBIL score of 750 or above before applying for a loan. Make sure that you keep a check on your CIBIL score by fetching your credit report on a regular basis. You must make a note that your credit report is error-free. This is because any error in your credit report can hamper your CIBIL score.  Therefore, if you happen to sport any error, make sure that you inform the credit bureau about the same and get it resolved at the earliest.

If you are an individual with a question, “How to check CIBIL score?” you can find an answer for the same below:

  1. Visit the official website of CIBIL.
  2. Fill the online application form by providing your personal details such as name, address, and contact number.
  3. To obtain your CIBIL Transunion score and your CIR (credit information report), you will have to pay a nominal fee.
  4. Once you submit the application form and make the payment, your CIBIL score and report will be mailed to you on your registered Email ID.

Now that you have a better understanding of “How to check CIBIL score?” make sure that you check your CIBIL score before applying for any kind of loan. Having an understanding of your CIBIL score will give you a fair idea regarding whether your loan will be approved or not. The good news is that you can check your CIBIL score for free once a year.

A CIBIL score of 750 or above will not only help you avail the desired loan amount at a reasonable interest rate, but also will help you avail favorable terms on your loan. Before availing a loan, you must compare various loan offers provided by different financial institutions. This will help you avail a loan that best suits your needs. With leading financial institutions, you can avail a loan with competitive interest rate, flexible repayment tenure, instant approval and quick disbursal. Also, do not forget to read the terms and conditions of the loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage.