Score Guide
CIBIL Score Ranges — What Each Means
Eligible for the lowest rates starting at 8.5% p.a. All 50+ lenders will consider your application. Fastest approvals.
Approved by most lenders. Rate may be 0.1–0.25% higher than the best rate. Minor documentation may be requested.
Fewer lenders available. Rates likely 0.5–1% higher. May require a co-applicant or higher down payment. Approval is possible.
Very limited options — mainly NBFCs at significantly higher rates. We recommend improving your score before applying.
Home loan approval is unlikely from mainstream lenders. Focus on credit improvement for 6–12 months before reapplying.
Score Factors
What Determines Your CIBIL Score
35%
Payment History
On-time payment of EMIs, credit card bills, and loan instalments. A single 90-day default can drop your score by 50–100 points.
30%
Credit Utilisation
The percentage of your credit card limit you use. Keeping utilisation below 30% of your total limit improves your score.
15%
Length of Credit History
Older accounts in good standing improve your score. Avoid closing your oldest credit card — it reduces average account age.
10%
Credit Mix
Having a mix of secured (home loan, car loan) and unsecured (credit card, personal loan) credit is viewed positively.
10%
New Credit Enquiries
Each time you apply for credit, a "hard enquiry" is made. Multiple applications in a short period signal credit-seeking behaviour and lower your score.
Action Plan
How to Improve Your CIBIL Score
Pay all dues on time — immediately
Set up auto-debit for credit card minimum payments and loan EMIs. Even one missed payment hurts significantly. This has the largest single impact.
Reduce credit card balances
Aim to use less than 30% of your card limit. If your limit is ₹1L, keep outstanding below ₹30,000. Pay the full balance, not just the minimum.
Do not close old credit cards
Closing old accounts reduces your available credit and average account age — both lower your score. Keep inactive cards open (even with zero balance).
Avoid applying for multiple loans simultaneously
Each loan application triggers a hard enquiry. Space out credit applications by at least 3–6 months if your score is borderline.
Check your CIBIL report for errors
Errors (incorrect defaults, accounts that aren't yours) are more common than expected. Dispute them at TransUnion CIBIL's website — corrections reflect within 30 days.
Become a joint or co-applicant on a good loan
Being added as a co-applicant on a well-managed loan (e.g., a family member's home loan with clean repayment) positively influences your score over time.
FAQ