CIBIL™ score measures the creditworthiness of an applicant. It is basically a vital score that helps the lender banks evaluate the eligibility for a loan or credit card. A CIBIL™ score is calculated by TransUnion CIBIL™, one of the four credit bureaus. A high TransUnion CIBIL Score depicts creditworthiness along with the financial discipline of a borrower and his/her past repayment history. It will also entail a borrower with better terms and conditions, such as low interest rate, high loan amount, extended loan tenure, or reduced EMIs. It will also ensure the lender banks about the ability of a borrower to pay the debt on a timely basis without any default, making the loan an easy process.
What is considered to be a Good TransUnion CIBIL Score?
The TransUnion CIBIL score ranges between 300 and 900 and is calculated based on current and past credit history.
- A score of 750 and above is considered a good score
- A credit score inching close to the highest value of 900 is considered an excellent credit score.
- CIBIL™ TransUnion score in the range between 550-700 signifies a medium score highlighting the not-so-sound financial discipline maintained by the borrower while making debt repayments.
- Any score between 300-549 is called a poor score and a sure indicator for loans or credit card approvals being rejected by banks and financial institutions.
Hence, target a high CIBIL score, as it will increase your chances of getting a loan. If you are applying for an unsecured loan, a higher CIBIL will allow you to negotiate with the lender bank to get favourable and affordable loan terms.
Risk Index Analyses
| Risk Index | Meaning |
| -1 or NA/NH | Consumers with NO credit history or have not received any credit information in the last 24 months. |
| 1 | The highest risk of becoming a defaulter |
| 2 | The highest risk of becoming a defaulter |
| 3 | Medium risk of becoming a defaulter |
| 4 | Low risk of becoming a defaulter |
| 5 | Lowest risk of becoming a defaulter |
Intentional Risk Intention
- If you are looking for an SBI Personal Loan, the main objective of this credit score to get loans approved is to make the required decision. Applicants with a credit history of less than 6 months would have an SBI CIBIL Score of 1 to 5. Also, in case of applicants with a credit history of above 6 months will get a score ranging between 300-900.
- Applicants with CIBIL scores for less than 6 months would be ranked between 1 and 5, assisting the lender banks in categorising the new applicants as high to low risk. The ranking “1” depicts high risk, and “5” depicts low risk.
- This score takes into the consideration the applicant’s credit-seeking activity, type of credit, age, location, alongwith the number of overdue days in a month.
Steps to know CIBIL Score with Credit Pass
Mentioned below are the steps that are to be followed to know the CIBIL score with a credit pass:
Step 1: Click the tab “Check Score” available at the top of the website.
Step 2: To verify with the help of an OTP, provide the registered mobile number.
Step 3: Provide the basic details as asked for.
Step 4: Once the details provided are verified, you can get access to your free CIBIL score.
Reasons that lead to a low CIBIL TransUnion Score
Mentioned below are the reasons that lead to a low CIBIL TransUnion Score:
- The borrower or banks did not correctly provide personal information, resulting in CIBIL™ TransUnion credit records not being updated with the correct particulars.
- The borrower has a past or current history of loan outstanding.
- The borrower has availed various loans or credit cards with different banks or financial institutions.
- A credit limit of over and above 30% of the actual sanctioned limit has been utilised.
- In case of a delay or default in making payment of EMI of loan or dues of the credit card.
- In case your joint account holder has made a default or you are experiencing delays in the payment of the loan taken under their name.
How to Improvise CIBIL TransUnion Score?
- Clear all outstanding loans/credit card dues
Clear all your debt on your loan or credit card to avoid late payment fees, which will further help to improve your CIBIL TransUnion score.
- Low credit utilization
The credit utilisation limit should not be increased by more than 30% of the sanctioned limit of credit card. Lender banks do not prefer borrowers who are inclined towards high debt. This is because it is considered risky, as one can default on the amount of credit.
- Avoid multiple debts at one time.
Multiple loans or credit cards should not be considered, as they hamper the chances of improving the CIBIL™ TransUnion score. To have a good credit score, one should always keep a gap between different debts.
- Regular checking of CIBIL™ TransUnion score
The CIBIL report and TransUnion report should be checked on a regular basis to ensure the accuracy of the information, and any errors should be reported immediately.
How to Calculate TransUnion CIBIL Score?
- Credit Mix (25% weightage)
Maintain a sound balance between different types of credit products in your credit portfolio. A combination of this healthy mix of secured and unsecured loans depicts that one can manage all credit types efficiently.
- Credit Utilisation Ratio (25% weightage)
CUR, or credit utilisation ratio, is the percentage of credit limit you consume on average. Ideally, you should try to maintain a CUR of less than 30%. The lower the CUR, the higher the CIBIL score.
- Credit History (30% weightage)
The credit bureau evaluates the repayment history by checking data from the past financial institutions.
- New Credit Enquiries (10% weightage)
Whenever you apply for credit, the finance company will pull a hard enquiry on the CIBIL report. Also, multiple enquiries within a short span of time can also have a significant affect on the credit score and further reduce the loan eligibility.
- Average Age of the Loan Account (10% weightage)
The credit bureau analyses the average age of your loan accounts while assessing the credit report. That is why it is advisable to retain old accounts and cards, even if they have been inactive for a long time.
Contact Address
In order to get any query, suggestion, resolution, or complaint, one can visit the below-mentioned address:
TransUnion CIBIL Limited
One Indiabulls,
19th Floor, Tower 2A-2B,
Senapati Bapat Marg, Elphinstone Road,
Mumbai 400 013.
Tel : +91 – 22 – 6638 4600
