About Credit & CIBIL
A CIBIL score is a three-digit number that reflects your creditworthiness and financial discipline. Issued by TransUnion CIBIL, this score typically ranges from 300 to 900, with a higher score indicating responsible credit behavior. Lenders such as banks and financial institutions rely heavily on your CIBIL score when evaluating loan or credit card applications, as it helps them assess the risk of lending to you.
Your CIBIL score is calculated based on several key factors—repayment history, credit utilization, total debt, length of credit history, and the number of recent inquiries. Among these, repayment history has the highest impact. Paying your EMIs and credit card bills on time is the most effective way to maintain a strong score. Keeping your credit utilization below 30% and avoiding frequent loan applications also helps improve your rating.
A good CIBIL score, usually above 750, increases your chances of getting faster approvals, better interest rates, and higher credit limits. It also gives you greater negotiating power with lenders. Regularly checking your CIBIL report is important to identify errors or potential fraud that may affect your score.
By practicing disciplined credit habits and monitoring your financial activity, you can strengthen your CIBIL score and build a secure financial future