What Is CIBIL Score and What Is a Good Range?

In spite of having a solid income, are banks showing hesitance to approve your loan application? No worries. Here the culprit may be a 3-digit number – CIBIL score. If you are totally new to the term CIBIL score, we have the solution. In this blog, we take you through what is CIBIL score , what would be a good CIBIL score range and tips to build a good CIBIL score.

What Is a CIBIL Score/ Credit Score?

A CIBIL score is a 3-digit number that shows your creditworthiness. This number is assigned by the Credit Information Bureau (India) Limited and it falls between 300 to 900. Before approving loans or credit cards, banks and financial institutions evaluate one’s CIBIL score and this number is considered as a critical factor.

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Why is your CIBIL score so important?

Assume that you have applied for a loan or credit card. Before approving your loan or card, the lender goes through your CIBIL score. If you have a high CIBIL score, it indicates that you are a reliable borrower. On the other hand, having a low CIBIL score signals risk. 

4 Top Benefits of having a good CIBIL Score

There are 4 major advantages if you have a good CIBIL score.

1. Faster loan and card approvals
2. Lower interest rates
3. Higher credit card limits
4. More negotiating power with banks

CIBIL score ranges and indications

Now, let’s take a deep dive into the various CIBIL score ranges and what each range indicates.

What would be a good credit score range?

Eager to know what would be a good credit score range?. Here’s the answer. A CIBIL score above 770 is considered good, however, above 790 is ideal. 

How to improve your CIBIL score?

Here’s the 4 major factors that impact your CIBIL score:

1. Payment history – If you make late payments or default on your EMIs, it can lead to a negative impact on your CIBIL score.
2. Credit mix – Make sure that you maintain a balanced mix between secured and unsecured loans as this can make a positive impact on your Credit score.
3. Multiple enquiries – Do you make too many loan enquiries? Be careful as this can negatively impact your credit score. To keep it simple, frequent loan enquiries is an indication that your loan burden may increase in the future.
4. High credit utilisation – Having a high credit utilisation limit? It signals that you have a rising debt burden over time, ultimately making a negative impact on your CIBIL score. It is always better to use less than 30% of your available credit limit.

How to check your CIBIL Score for free?

Follow these simple step-by-step procedures to access your free CIBIL score and credit report online:

Step 1: Visit the Official CIBIL Website

Click the link below and tap on the “Get Your free CIBIL Score & Report” section.

https://www.cibil.com/ 

Step 2: Now fill up the initial form

Enter your basic details, including your first name, last name, PAN card number, date of birth, email ID, pin code and mobile number.

Once the verification is complete, you can see your credit report and score.

You can also check the Credit score in multiple mobile apps like GPay, cred, etc. You jsut need you pan number to check it.

How often should you check your CIBIL score?

According to experts, you should check your CIBIL score regularly, at least once a year. Now you might be wondering why? Here you go.

Top 6 benefits of checking your CIBIL score regularly

1. Helps improve your score

When you get to know what is affecting your CIBIL score, be it high credit usage or late payments, you can take the necessary measures to improve it. However, consult with a certified financial advisor before doing this as it will help improve your overall borrowing profile.

2. Better awareness of your financial health

When you have a clear idea about your credit worthiness, naturally you will be having a better understanding about how your banks view you. 

3. Helps in early detection of frauds

Assume that there is a sudden fall in your credit score or some unusual activity. When you check your credit report, such identity theft or errors can be seen. In case of any such unfamiliar activity, immediately contact your respective credit bureaus like CIBIL, CRIF High Mark or Equifax. Make sure that the issue gets resolved and also keep in mind to bring your credit profile back in order.

4. Better loan terms

When you are aware of your credit score, it helps you apply strategically for personal loans and credit cards. Thus, you can say goodbye to hard inquiries that can badly affect your credit score. One more benefit is that it improves your chances of approval with favourable rates.

5. Big purchases

Assume that you are planning to buy an expensive item, say a car. If you check your credit score well in advance, it gives you ample time to boost your credit score before applying for the car loan. In such a scenario, a respective CIBIL score will help you secure a good car loan deal from lending institutions.

6. No impact on your credit score

Many platforms offer a service of free credit score. Be aware that doing that does not make any impact on your credit score. This is because checking the score is only considered as a soft enquiry. Self checks are relatively harmless and it causes a problem only when you apply for  new personal loans and credit cards within a very short period of time. As discussed earlier, such steps are an indication that you are in need of more debt.

Key Takeaways

• Your CIBIL score is a three-digit number between 300 and 900.
• A good CIBIL score range to aim would be between 770 and above.
• Higher scores come with the advantages of better loan offers and faster approvals.
• Your score depends on repayment habits, credit utilization, and credit history.
• Checking your score regularly helps identify issues before they hurt your credit profile.

Understanding your CIBIL score range helps you make better borrowing decisions and maintain long-term financial stability. 

Conclusion

Hope the article offers valuable insights on what is CIBIL score and the ideal CIBIL Score Range you should be aiming for. To sum it up, It is better to always lead a disciplined financial life. Just by adopting a few simple steps like paying EMIs on time, not exceeding 30% of the credit limit on your credit card and by staying away from making too many loan enquiries, it is very much possible to reach a good CIBIL score range.