{"id":3248,"date":"2022-06-13T17:52:15","date_gmt":"2022-06-13T12:22:15","guid":{"rendered":"https:\/\/bioswikis.net\/?p=3248"},"modified":"2023-07-21T13:08:41","modified_gmt":"2023-07-21T07:38:41","slug":"everything-you-need-to-know-about-cibil-score-range","status":"publish","type":"post","link":"https:\/\/bioswikis.net\/everything-you-need-to-know-about-cibil-score-range\/","title":{"rendered":"Everything You Need to Know About CIBIL Score Range"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">CIBIL, Credit Information Bureau India LTD, is an Indian credit agency that generates your credit report containing all your credit information. It is RBI authorised institution and is the most trusted company that holds everyone\u2019s credit information. Your CIBIL score, which is presented in your CIBIL report, is also generated by this bureau.\u00a0<\/span><\/p>\n<h2><b>CIBIL Score and Its Importance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The CIBIL score is a rating that ranges between 300 to 900, with 300 as the lowest and 900 as the highest score. Banks and financial institutions use this score to check your creditworthiness when applying for a <\/span><span style=\"font-weight: 400;\">personal loan<\/span><span style=\"font-weight: 400;\"> or credit product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A CIBIL score is important because a lender will make their decision of lending you debt based on a good <a href=\"https:\/\/www.moneytap.com\/what-is-a-cibil-score.html\" target=\"_blank\" rel=\"noopener\">CIBIL score<\/a>. Several factors make up a CIBIL report:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Timely repayments of debts<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Staying within the credit utilisation limit<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Number of loan applications at one time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Credit mix<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The length of your credit history<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Outstanding debt in total<\/span><\/li>\n<\/ul>\n<h2><b>Understanding the CIBIL Score Ranges<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The CIBIL score consists of various ratings between 300 to 900. Here\u2019s a table that gives an in-depth of what every range means and how the lender views you:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b><i>Credit Score<\/i><\/b><\/td>\n<td><b><i>Credit Worthiness<\/i><\/b><\/td>\n<td><b><i>What It Means<\/i><\/b><\/td>\n<\/tr>\n<tr>\n<td><b><i>NA\/NH<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Not Available or No History<\/span><\/td>\n<td><span style=\"font-weight: 400;\">If you haven\u2019t ever used a credit card or taken a loan before, you don\u2019t have a previous credit history.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b><i>300-549<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Poor<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Multiple missed or late loan EMIs or credit card repayments, increased credit enquiries, or exceeded the credit utilisation limit. Lenders may not approve your application with this score.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b><i>550-649<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Fair<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May have missed some repayments or had multiple card enquiries. Lenders may still not approve. However, they\u2019ll charge higher interest rates and down payments if they accept your application.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b><i>650-749<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Good<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A good repayment history and a lower risk of getting rejected. But lenders won\u2019t give the best interest rates yet.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b><i>750-799<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Very Good<\/span><\/td>\n<td><span style=\"font-weight: 400;\">A long and regular credit history with proper repayment. You\u2019re a low risk to the lenders, so you\u2019ll get approvals and great deals.<\/span><\/td>\n<\/tr>\n<tr>\n<td><b><i>800-900<\/i><\/b><\/td>\n<td><span style=\"font-weight: 400;\">Excellent<\/span><\/td>\n<td><span style=\"font-weight: 400;\">You have a great credit history, regular repayments, and low credit utilisation. You\u2019ll get the best deals on credit cards, favourable terms, and interest rates.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>What\u2019s a Good CIBIL Score?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A CIBIL score is considered good when it exceeds 700-750. But, remember that every lender has its own method of considering risk grades. For example, if one bank recognises 700 as low risks, another bank doesn\u2019t need to consider the same grade.<\/span><\/p>\n<h2><b>What\u2019s a Bad CIBIL Score?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Anything below 600 is considered a bad CIBIL score. No lender will trust to give you money if you don\u2019t make timely repayments or hold a high credit utilisation limit. You will have a hard time getting a loan, and even if you get one, you\u2019ll have high interest rates and no flexibility in choosing repayment tenure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, nothing is unfixable. If you have a low CIBIL score, there is no need to worry; it\u2019s not going to stay the same if you try to <\/span><span style=\"font-weight: 400;\">improve your cibil score<\/span><span style=\"font-weight: 400;\">. This will happen once you keep a check on your report and analyse which financial habit of yours is keeping you away from having a good CIBIL score.<\/span><\/p>\n<h2><b>The Importance of a Good CIBIL Score<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The better your score, the more a lender can trust their money with you. They weigh your repayment capacity with your CIBIL score, so if you possess a score higher than 700, you\u2019ve better chances of returning their debt timely.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apart from approvals, maintaining a good score is also important for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Faster loan application process<\/span><\/li>\n<li style=\"font-weight: 400;\">Lesser interest rate on personal loans and <a href=\"https:\/\/supportingainain.com\/business-loan-kaise-le\/\" target=\"_blank\" rel=\"noopener\">business loans<\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Access to a higher loan amount<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wide choices in repayment tenure<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Multiple choice in selecting lenders<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Hence, you benefit a lot when you maintain a good CIBIL score.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you know the difference between a good and bad CIBIL score and why CIBIL score range is important, make responsible financial decisions that won\u2019t decrease your score. Make timely repayments and regularly check your score so that you have a track of what direction you\u2019re heading into.<\/span><\/p>\n<p><b>Author Bio:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India&#8217;s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, and personal financial matters and when they want to get a loan. He has made it his life&#8217;s mission to help and educate people on various financial topics, so email him your questions at <\/span><a href=\"mailto:shiv@freopay.com\"><span style=\"font-weight: 400;\">shiv@freopay.com<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CIBIL, Credit Information Bureau India LTD, is an Indian credit agency that generates your credit report containing all your credit information. It is RBI authorised institution and is the most trusted company that holds everyone\u2019s credit information. Your CIBIL score, which is presented in your CIBIL report, is also generated by this bureau.\u00a0 CIBIL Score &#8230; <a title=\"Everything You Need to Know About CIBIL Score Range\" class=\"read-more\" href=\"https:\/\/bioswikis.net\/everything-you-need-to-know-about-cibil-score-range\/\" aria-label=\"Read more about Everything You Need to Know About CIBIL Score Range\">Read more<\/a><\/p>\n","protected":false},"author":10,"featured_media":3249,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/posts\/3248"}],"collection":[{"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/comments?post=3248"}],"version-history":[{"count":5,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/posts\/3248\/revisions"}],"predecessor-version":[{"id":3262,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/posts\/3248\/revisions\/3262"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/media\/3249"}],"wp:attachment":[{"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/media?parent=3248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/categories?post=3248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bioswikis.net\/wp-json\/wp\/v2\/tags?post=3248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}