How Is Your CIBIL Score Calculated?

CIBIL score is a credit score calculated by TransUnion CIBIL that rates the trustworthiness and reliability of a borrower. In this article, we will explore the factors that influence credit score and look at how credit score is calculated. 

How Is CIBIL Score Calculation Done?

CIBIL is one of India’s most trusted credit rating companies. It assigns a score to each individual, ranging from 300 to 900, based on their past credit behavior, credit history, and several other factors.

CIBIL uses a unique algorithm to determine the CIBIL score depending on varying factors. Before getting into CIBIL score calculation, let us first understand the factors that impact it.

CIBIL Calculation breakdown

Your CIBIL score is made up of four factors and each of them have a weightage.

  • Payment History (30%) is the most crucial factor, reflecting timely repayments.
  • Credit Exposure (25%) assesses your borrowing behavior, including outstanding debt and credit utilization ratio.
  • Credit Mix & Duration (25%) considers the variety of credit products used (loans, credit cards) and their duration.
  • Other Factors (20%) include inquiries made by lenders and new credit lines opened.

Source: Cibil

Factors Affecting CIBIL Score

The following 5 factors play an essential role in influencing your CIBIL Rating. 

Repayment History

When you take a loan or a credit card, you must pay back your loan in the form of EMIs to close the loan within the specified time. These EMIs include the principal amount as well as the interest garnered.

Your payment history accounts for most of your CIBIL score calculation. Credit bureaus keep records of your repayment history, its consistency, and delays to collate and calculate the CIBIL score. 

Age Of Credit History

If you are new to credit, it means that the lenders and the bureaus have no credit record of you. This leads to a lower or a "NIL" CIBIL score. 

The length of your credit history also impacts your credit score. A borrower with years of credit history will have a better CIBIL score as the bureaus have access to the borrower’s credit history and behavior. 

Credit Utilization Ratio

Credit Utilization Ratio(CUR) is the percentage of money being utilized every month from the available credit limit. The ratio has an impact on your CIBIL score calculation. 

The higher the ratio, the lower your score. Ideally, the CUR must be 30% or less. Borrowers with higher ratios are deemed unreliable, and credit hungry. 

Credit Mix

Your credit portfolio or credit mix is another parameter that CIBIL considers for the rating you. A good credit mix reflects well on your score. Make sure to take unsecured and secured loans to keep your portfolio diverse. 

Credit Applications

While the number of credit applications you make only contributes to a small portion of your credit score, the ensuing hard inquiries can have a lasting impact. Every credit application is followed by a hard inquiry, which reduces your score.

Keep your credit applications to a minimum to prevent your CIBIL score from dropping.

There are several other factors such as new credit, recent credit activity, number of loans, and more that affect your credit score. 

How To Calculate CIBIL Score Online?

CIBIL uses various parameters and a unique method to determine the CIBIL score of a borrower. While it is not possible for us to calculate CIBIL score online, you can easily access your CIBIL score and report to understand where you lack and what you can improve.

Simply go to the CIBIL website and log in to get your report. 

You can also check your CIBIL score by using moneyview’s credit score calculator


CIBIL score is determining factor in loan approvals and an excellent credit score, 750 and above, gets you in the good books of lenders and a higher loan amount. The CIBIL bureau consolidates your credit history, behavior, and other parameters to accurately provide a credit score to determine your creditworthiness. 

How Is CIBIL Score Calculated? - Related FAQs

Yes. When you close old credit, the length of your credit history decreases, causing your score to decrease. 

Credit score ranges from 300 to 900. A borrower with no credit history can have the least credit score.

A delay in EMIs or credit repayment negatively impacts your credit score and incurs a fine from the lender.

Yes. With good credit behavior and consistent repayments, you can reach a credit score of 850 over time.

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