Credit Score (CIBIL)

Your CIBIL score is a financial report card lenders pull before approving a loan or credit card. The name comes from TransUnion CIBIL, India's best-known credit bureau, though Experian, Equifax and CRIF High Mark also issue scores under RBI oversight. The score runs from 300 to 900, higher is better.

How it is calculated

The score is built from your borrowing history: timely repayment of EMIs and card bills (the single biggest factor), your credit utilisation (how much of your card limit you use), the length and mix of your credit history, and how often you apply for new credit. Missed payments, maxed-out cards and a flurry of loan applications drag it down.

What counts as a good score

There is no official cutoff, but lenders generally treat 750 and above as strong, improving approval odds and earning you better interest rates and higher limits. Below the mid-600s, approvals get harder and pricing worse. A good score is literally money: it can mean a cheaper home or car loan over many years.

In India: recent RBI changes

The RBI has pushed credit bureaus and lenders toward faster, more frequent reporting, so your repayment behaviour now reflects in your score much sooner than the old monthly cycle. Rules also require lenders to resolve disputed entries within a defined window and to notify you when your report is accessed. You are entitled to one free credit report a year from each bureau, and checking your own score is a "soft enquiry" that does not hurt it.

How to improve it

Pay every EMI and full card bill on time, keep utilisation low (ideally well under your limit), avoid multiple loan applications in a short span, and don't rush to close your oldest credit card, length of history helps. Check your report periodically for errors; wrong defaults or accounts you never opened can quietly damage your score, and you have the right to get them corrected.