CIBIL Score Range in India

When you apply for a loan, the lender checks your credit score to understand your creditworthiness. This page will talk all about credit score ranges and what is the best credit score range that you need to aim for.

What is the Credit Score?

After you take a loan and start repayments, the lender company or the bank sends information about your repayment behavior to the credit bureaus. They use their calculation methods to generate a 3-digit score for each borrower.

The most popular credit bureaus in India are CIBIL, Experian, CRIF HighMark, and Equifax. Out of these, the CIBIL score is used the most extensively by banks. Thus, to know about credit score range in India, we will discuss the CIBIL score range in detail. 

What is a Good CIBIL Score Range?

CIBIL is short for Credit Information Bureau India Limited, also known as TransUnion CIBIL. The score generated by them is known as the CIBIL score, and it ranges from 300 to 900. As in all credit scores, a higher score is considered better. 

Here is a table that tells you about the CIBIL score range and what it means -

CIBIL Score Ranges and Its Meaning

Let us dig deeper into CIBIL score ranges to understand what it translates into in terms of loan approvals - 

Score 750 – 900:

This is the best CIBIL score range and if your score lies in this range, you don’t have much to worry about. You sure have good financial health, and you can get loan approvals easily. Your loans will also have lower interest rates, longer tenures, and higher loan amounts.

In short, you can negotiate the best terms for a loan if your score lies in this range. Your only focus should be on maintaining your score by not faltering on your payments or taking too many loans at once.

Score 700-749:

Generally, a CIBIL score above 700 is considered good enough for most credit products. 700-749 is a good CIBIL score range for your score to lie in. 

You have a high probability of getting the desired loan amount. You can get a standard interest rate and a flexible loan tenure as well. Usually, borrowers in this range have a relatively good track record of repaying loans on time. 

This is a good credit score range, but you can always follow tips to improve your CIBIL score and attain the best CIBIL score range.

Score 650-699:

If you are searching for ‘good credit score range India’, this range is not it. However, we can say that the scales are fairly balanced on either side. 

While the loan approval probability is not very impressive, it is not impossible to get a loan. Most NBFCs and financial startups will offer you an instant loan if your CIBIL score lies in this range. However, it will be fairly challenging for you to obtain loans from banks at favorable terms and conditions. 

Score 600-649:

As we mentioned a higher score is considered better when it comes to credit scores. The loan approval rate is just above the baseline.

You might still be able to procure loans from some online lenders, the loan amount will be low, and the interest rates will be high with short repayment tenures. If your CIBIL score lies in this range, you should focus on good financial behavior to try and improve your CIBIL score.

Score 300-600:

This is the lowest CIBIL score range and the loan approval probability is extremely low. The probability of loans with such a credit score is nearly zero, irrespective of the financial institution.

Your credit score needs immediate action and you can start taking small loans and paying them on time to build your CIBIL score. For more tips on how to improve your CIBIL score from 300, read this article. 

How to Maintain a Good CIBIL Score Range?

Your credit score directly impacts your loan eligibility, the loan amount you can get from a lender, and the interest rate. A credit score works as a measuring unit for lenders to judge the risks involved while lending the amount. Keeping a healthy CIBIL score range is very important. 

Here is how you can improve and maintain your CIBIL score - 

Make Timely Payments

Regular payments help improve your credit score. Make sure not to miss any EMI payment dates for your ongoing loans. 

Also, pay your credit card bills in full every month. If you are having difficulty paying the bill on a certain month, at least pay the minimum amount by the due date 

Don’t Take Unnecessary Loans

Don’t take unplanned and whimsical loans, and don't borrow more than you can afford to repay. Calculate the EMIs and always plan before applying for loans. Borrowing more than you can repay can lead you into a debt trap.

Maintain a Low Credit Utilization Ratio

Your credit utilization ratio is the percentage of credit you have utilized to the credit available to you. You should ideally maintain a CUR below 30%.

You should never have an outstanding balance on your credit card that exceeds 30% of your credit limit. 

Avoid Settling Loan Accounts

You should repay the unpaid amount and close the account instead of opting for a settlement. 

Any old loans that have the status of ‘settled’ or are not closed may harm your CIBIL score. 

A ‘closed’ status means that a loan has been fully repaid and all obligations to the lender have been fulfilled. Also, ensure that you get a formal closure certificate from the lender after closing an account as it might help you later on down the line if you need to borrow money or apply for a new loan.

Don’t Close Old Accounts

Your credit age has an important role to play in determining your credit score. Thus, don’t close credit cards that have been used for a significant period. Closing your older credit cards might reduce your credit age.

Instead, try to keep them active by making small purchases and paying the bills on time.

Create a Good Credit Mix

Try to build a good mix of credit, including credit cards, secured, and unsecured loans. It shows lenders that you can responsibly manage a variety of credit products successfully. A good credit mix will have a positive impact on your credit score.

Check Your Credit Score and Report Regularly

Checking your credit report is a way to understand your credit health better. You'll need to do this periodically to ensure there are no errors in your credit history report. Any incorrect information could bring down your score, and it's crucial to identify and correct errors as soon as possible.

You can check your CIBIL score for free in just two minutes using the moneyview credit tracker.

Benefits of a Score Falling in the Best CIBIL Score Range

Having a good credit score comes with plenty of benefits that you should know before applying for a loan. It helps you secure the amount best suited to your requirements. Here are some of the benefits:

Higher Chances of Loan Approval

With a higher or good credit score, the chances of loan approval increase. It shows that you have good repayment behavior.

High Loan Amount

Generally, a high credit score means you have a low credit utilization ratio which means you can get higher loan amounts when you apply for loans. 

Low-interest Rates

A good credit score determines sound creditworthiness and regular payments of previous loans. Since the chances of default are minimal, you can get loans for lower interest rates. 

Longer Tenures

A high credit score helps you negotiate the terms of the loan as per your requirements. You can get longer loan tenures, as your loan repayment behavior is good.

Lesser Need for Documentation

A good CIBIL score means your creditworthiness is high. Thus, you need to furnish fewer documents, and your loans get approved faster.

Loan Options with a Score that Lies in Low CIBIL Score Range

If your CIBIL score does not fall in a good credit score range, getting loans can be difficult for you. But you can still procure loans. In case you need urgent funds and do not have a high credit score, you can opt for any of the following options -

• Informal methods of borrowing such as online fundraisers or requesting the help of family or friends

• Try to apply for loans from Non-Banking Financial Companies (NBFCs)

• Explore P2P or peer-to-peer lending options

• Opt for a secured loan if you can provide collateral

• Apply with a guarantor or a co-signer as this will help distribute the loan burden

You can also apply for instant personal loans from moneyview with a CIBIL score of just 650.

Conclusion

The CIBIL score range in India, just like other credit scores, ranges from 300-900. A higher score is considered better and a score of 700 or above is good enough for most credit products.

A good CIBIL score is a sign of good financial health. If you follow good repayment behavior and take loans carefully, you can easily build a high credit score. 

A low credit score can make getting loans difficult but you can patiently work towards improving your CIBIL score. Check your credit score regularly using the moneyview credit tracker.

You can also opt for instant personal loans from moneyview if you have a low credit score. You can get loans up to Rs.10 Lakh with a CIBIL score of just 650. To apply, visit our website or download the moneyview loans app.