What is CIBIL Score and How to Check Your CIBIL Score

Cibil score is a score that indicates your financial score. CIBIL score is also called credit report. It is needed at the time of bank loan. Normally, records of loans and credit card related payments in CIBIL score are deposited with CIBIL by banks and other lenders on a monthly basis. This makes it easy for banks and NBFC companies to loan.

A credit monitoring system was created in Western countries in the year 1950. A credit rating agency named CIBIL was started in the year 2000. CIBIL is playing its role in making the country financially literate. With this the financial market is being made as transparent as possible so that the financial institution can manage the risk properly. CIBIL is continuously increasing awareness among the financial company with updating its database, technology, software and is working to prevent bad loans (which cannot be recovered).

CIBIL is the largest Credit Bureau Organization in the entire country which has been placed under RBI. It is initiated like the Credit Information Companies Act 2005. Now it comes to whose credit score is it and how is it checked? Any citizen of the country can check their credit score very easily online. There are many companies which provide facility to check credit score. Below is the name of some company from where you can also check your credit score.

What is CIBIL Score ?

The full form of CIBIL is Credit Information Bureau of India Limited. Transunion Cibil Limited is India’s first credit information company, also commonly known as Credit Bureau. Using this information, a credit information report (CIR) and credit score are developed, due to which lenders evaluate and approve loan applications. The CIBIL Transunion Score is a three-digit number that is between 300 and 900. It depends on Credit History. More credit score is considered good here. If we talk in one word, then this loan shows the ability to return the amount with interest within the time limit. This is the number that determines whether the applicant should be given a loan or not.

“Credit Score indicates the eligibility to return the loan amount.”

The CIBIL Score or Credit Score contains your financial report for the last six months. If you have paid the loan and credit card correctly then the credit score is good. If you make any mistake here, now you will have to face many difficulties in getting loan. If your credit score is more than 750, you can get a loan easily. Transunion CIBIL Limited is the first credit information company in India that gives such information about loan applicant. So that consumers can get loans on easy terms quickly.

How CIBIL Exactly Works ?

Reports of timely loan and credit card payments are submitted by banks and financial institutions to CIBIL on a monthly basis. A credit information report and credit score are created using this information. The CIBIL Score or Credit Score is seen prominently for approval of any loan. Any financial institution checks the credit score of the applicant before lending. If the credit score is low, the lender, ie the bank or financial institution, first asks to correct it. One can get a loan easily if the credit score is good (750-900).

CIBIL SCORE Calculate is done on the basis of credit history. Many things are kept in mind here. Such as – Credit History (30%), Credit Mix & Duration (25%), Credit Exposure (25%), Credit Utilization (10%), Recent Credit Behavior (10%).

What does CIBIL SCORE Depends On?

There are many factors that change the CIBIL SCORE. Some important facts are mentioned below.

  • Unsecured Loans – As its name suggests, banks and NBFC companies do not hold any Asset as a mortgage in such loans.
  • LOAN Repayment – How the repayment of any loan has been done or how it is being done. The problem is more due to not depositing EMI on time.
  • CREDIT USE – Loan credit is decided on the basis of credit score, how much loan you can get. Never use full credit.
  • Loan Duration – Always take maximum time to repay the loan. With this EMI is very less and loan EMI is easily deposited. If you have a budget, then you can deposit the loan amount even before time. This keeps the credit score good.
  • Loan Applications – If a loan is applied at several places simultaneously and it is rejected, it is also counted. More rejections make the credit score worse. In such a situation, many places avoided applying for loans simultaneously.
  • Credit Limit – It has been seen many times that people always want to increase credit. This is enough to spoil CIBIL SCORE.
  • Guarantor / Co-Borrower – Taking a loan or becoming a guarantor of both is subject to both credit scores. In such a situation, Risky avoided becoming a guarantor in a loan.

How Much Should CIBIL SCORE Necessary ?

It is usually between 300 and 900 and a score over 750 is considered a correct CIBIL score. If less than 300 CIBIL, no bank will give loan. Before giving any financial institution loan, it wants to decide whether the applicant will be able to return the loan amount with interest on time? After all, what should be the CIBIL score? This is a very important question. Have you ever applied for a loan and have been rejected because of the CIBIL score, then do tell in the comment below.

  • A score between 750 and 900 indicates an excellent financial track record. Here every kind of loan can also be got on your terms. Such as Loan Tenure, Loan Amount, Credit Card Limit.
  • Loan credit card between 600 and 700 will be available easily, but negotiation cannot possible.
  • Loan amount and credit card limit from 450 to 600 is very less.
  • Having a credit score less than 450, it is entirely up to the bank to get the loan. If EMI is given on time, it may improve.

“Placed under a superior credit score from 600 to 750.”

How to improve CIBIL SCORE?

If you want to make the loan process easier, then you have to pay attention to the credit score, if some important things are not ignored, it can be improved very easily.

  • Always submit EMI ahead of time or on time. Interest is also payable on delay and credit score is also become bad.
  • Apply a reminder to ensure that the EMI accumulates on time.
  • Maintain Credit Mix like Unsecured Loans (which does not contain any guarantee) and also include secured loans in the portfolio.
  • If the bank wants to increase the credit limit, then it should be increased but, it should be used as per the need. The credit available from this is always more which improves the credit score.
  • Pay all credit card bills on time.
  • The less you use to avoid using credit card to extreme limits, the sooner your credit score will be good.
  • Keep more of loan tenure. This will reduce installments which can be given easily.
  • If there is not much need, do not take many loans at one time.

How to check CIBIL Score ?

If you want to take a loan in future, then keep your credit score better from now. But, for this it is also important to know, how to check CIBIL score? It is explained in very simple words below. There are many websites for checking the CIBIL score, out of which I am telling you about one website here.

  • Click on FREE CIBIL SCORE CHECK to check CIBIL score.
  • Here a form has to be filled in which to enter name, address, PAN card number, and phone number.
  • After this, some questions have to be answered.
  • Your CIBIL score is in front of you in sometime.

Here, a free credit score can be seen only once. If further checks are to be made, CIBIL.COM will have to be subscribed.

Credit Bureau Companies in India

  • TransUnion Credit Information Bureau (India) Limited (or CIBIL)
  • Equifax
  • CRIF High Mark
  • Experian


If you have any question related to CIBIL SCORE then definitely ask in the comment box. Your question helps us to get more information to you. Share this information with your friends through Facebook, Whatsapp and other social media.

Author: Himanshu Meena

Motivated Blogger !!! Exploring Opportunities Everywhere !!!

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