What is the meaning of the CIBIL Score?

2 min read
23-Aug-2024

Your CIBIL score is a three-digit number ranging between 300 and 900 that denotes your creditworthiness. A high score can help you get quick approval and better deals on loans and credit cards. For most banks and non-banks, the minimum credit score required for loan approval is 685 or higher.

However, before you learn about your CIBIL score, it is essential to know the meaning of CIBIL and why it is critical to your credit health.

CIBIL full form and its overview

CIBIL stands for Credit Information Bureau India Limited. It is a credit information company engaged in the maintenance of records of all credit-related activities of individuals and organisations.

Banks, non-banking finance companies, and other financial institutions submit customers' credit information to the bureau. Based on this information, CIBIL issues the Credit Information Report (CIR) and assigns a credit score to the customer.

Read more: Personal Loan for CIBIL Score of 550-600

Why does CIBIL Score matter?

The Credit Health Report document and the corresponding credit score, commonly referred to as the CIBIL score, determines your creditworthiness and tells the lender how likely you are to repay your loan on time. A high score indicates a lesser likelihood of loan default, while a low score suggests credit-risky behaviour.

It is important to note that while CIBIL is a repository of credit information, it does not participate in any lending activity. It does, however, provide critical information that banks and lenders use to determine an applicant’s credit profile and identify those customers who have a more reliable history of borrowing.

Other services from CIBIL

Besides your credit score, CIBIL also offers a credit report for individuals and a credit report for companies.

Your credit report contains your credit score and important information about your borrowing history, repayment frequency, and a record of repayment defaults and delays, if any. The report also maintains data about your employment and contact details.

Similar to an individual’s report, the CIBIL report for companies comprises details about a company’s credit history. It includes data about existing credit, any pending lawsuits, as well as any outstanding amounts. The bureau fetches this data from financial institutions and meticulously maintains it over time.

Factors such as your repayment history, credit utilisation ratio, and the number of ongoing loans influence your CIBIL score.

It is considered good practice to keep a tab on your credit score at least once a year. Check your credit score for free with Bajaj Finserv. Enter just a few basic details and get access to your score as well as your personalised Credit Health Report.

Read More Read Less

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is the importance of having a CIBIL Score 685 or higher?

Your CIBIL Score is a measure of your credit health. This score ranges anywhere between 300 and 900, with 900 denoting maximum creditworthiness. It's best if your credit report has a CIBIL Score of 685 or higher. A score of 685 or higher falls in the excellent score range and shows lenders that you are a dependable borrower. Thus, having a CIBIL Score of 685 or higher will assist in qualifying you for personal loans and credit cards. You can check your latest CIBIL Score for free without any impact on your score.

What is CIBIL Score?

CIBIL Score is a three-digit number ranging from 300 to 900 which is used to assess your creditworthiness. Your credit behaviour and the information in your TransUnion CIBIL report, which serves as a record of your credit history, are taken into account when calculating your credit score.