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What is a good CIBIL™ score?

A good CIBIL™ score is one that is 750 or above. A credit score is a three digit number between 300-900. The better your credit history, the higher your score will be.

CIBIL™ is one of the four authorized credit bureaus in India which provide a credit score, the others being Equifax, Experian and CRIF High Mark.

Your score is based primarily on your current and past loan and credit card repayment history, among other factors. It gives potential lenders a snapshot of your credit health and your ability to repay your debts on time.

Your credit score is contained in your CIBIL™ credit report.

Do any other agencies issue credit scores apart from CIBIL™?

Three other credit rating agencies (or credit bureaus) are authorised by the RBI to issue credit scores in India – Equifax and Experian. However, the CIBIL™ credit score is probably the most widely used by potential lenders.

What are the advantages of a good (above750) credit score?

Easier loan/credit card approval process: Lenders generally look for a minimum score of 750 before processing your application. A credit score of 750 or above signifies a customer who has good repayment history. There is a good chance your application will be approved with such a score.

Quicker approval: Once lenders see a good score, the approval process can take just days instead of weeks or months.

Better interest rate: A high score denotes reliable credit behaviour, and banks would like to do business with such customers. You might be offered a low rate of interest in order to gain you as a customer.

Longer repayment period: You might get a longer loan tenure since the lender is confident that you will repay the amount.

Higher loan amount/card credit limit: Since you are reliable with repayments, banks will be willing to extend a larger amount of credit.

How is the credit score calculated?

CIBIL™ collects a large amount of data monthly from your lenders including your:

  • payment history (current and previous) on all your loans and credit cards
  • total available credit balance
  • number and age of your loan and
  • credit card accounts

A complex mathematical formula is used to calculate your credit score based on this and other credit-related data that the lenders send to the credit bureaus.

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