CIBIL Score - How to Check, Calculate and Improve Credit Score – Bajaj Finserv (2024)

The words ‘CIBIL score’ are often used synonymously with ‘credit score’ and refer to a three-digit score between 300 and 900.CIBIL stands for Credit Information Bureau India Limited, an Indian credit rating bureau that has access to your credit information. This information refers to all financial transactions where you have borrowed or repaid the money.

A good CIBIL Score is a score between 700 to 900, which means the borrower has a higher chance of getting a higher loan amount at a low-interest rate.

CIBIL has access to the credit information of around 600 million people and has 2,400 members that include lenders of all varieties. Since CIBIL is one of the most trusted credit information companies in India, its score is referred to as your credit score.

CIBIL Score range

The below table enlists what a particular CIBIL Score range signifies and, consequently, the probability of approval of loans:



Approval Probability


Needs attention






Satisfactory or fair







Very high

Additional Read:
Credit rating agencies in India

What is your credit score? Why is it important?

Your credit score may be defined as a rating that reflects your creditworthiness. Think of yourcredit scoreas a batting average. If your batting average is above 50, then it means that you have a consistent scoring record of 50, and you are a good player. Similarly, when your credit score is high, it shows that you have borrowed and repaid credit responsibly in the past.

Your credit score is important because it showcases how dependable or risky you are as a borrower. Thus, it directly impacts how eligible you are for a loan, what the lender will offer you as a loan amount, and the rate of interest you will be charged. Your credit score allows lenders to judge the potential risk in lending you money. Your credit score is critical when it comes to unsecured or collateral-free loans and canaffect your eligibility for personal loansto a great extent.

While you as an individual have a score, even businesses are given credit scores. For a business, the CIBIL score impacts how creditworthy a lender will find the company. A business credit score could also impact its ability to attract investment.

Additional Read:Save 45% on personal loan EMI

Background of credit score in India

The RBI has licensed four companies to access and manage credit information in India. CIBIL started its activities in 2001 and has since been one of the most popular credit information companies in the country. Others include Equifax, Experian, and High Mark. Each of these organisations has its unique scoring system.

However, one thing that is common between all scores is that if you have no credit history, your score will be -1. Likewise, if you have a credit history that is less than 6 months old, you will receive a credit rating of 0. Apart from this, these credit information companies also provide an in-depth credit report. Your credit report is the basis on which you are given a credit score.

CIBIL score range

CIBIL scores can range anywhere between 300 and 900, with 900 denoting maximum creditworthiness. A CIBIL score of 750 or above in your credit report is ideal. It will aid in qualifying you for personal loans and credit cards.

However, if your CIBIL score is below 685, you will find it harder to borrow funds from banks and NBFCs. You may be offered a higher personal loan interest rate if your score is close to 685, or your application may be rejected outright if it is much lower. Thus, keeping your CIBIL score above 685 is essential.

CIBIL Score Range










How to read your CIBIL report or credit report

The credit report is a detailed document that highlights your entire credit history and record. It includes your personal information, contact information, employment history, credit limit on various credit cards, credit balances, and dates on which you opened various accounts. Various parties or organisations view this credit report.

Some common parties who may view your credit report are as follows:

  • Creditors
  • Lenders like banks and non-banking financial companies
  • Landlords

Given that it is a comprehensive document with multiple sections, it is important for you to know how to read your credit report.This will help you understand your report better and even check if it does justice to your credit history.

Here are the four most important sections in your CIBIL report

1. Credit summary

This section includes details on the kinds of credit accounts that you had in the past or have currently, along with the details regarding the balance. Usually, the account information is divided into segments such as revolving accounts like credit cards, instalment accounts like car loans, real estate accounts like home loans or loans against property, as well as any collection accounts.

2. Account history

This section consists of all details related to your credit accounts. It will include information like the lender’s name, the type and amount of credit you borrowed, the account number, the date the account was opened, the date you made your most recent payment, the current balance, and a monthly record (usually up to 3 years) of your repayment.

3.Profile information

This is a section that lists big financial slipups, both current and previous. This includes criminal arrests or bankruptcies. Pay special attention to this section and identify the causes of these errors and ensure that you don’t repeat them in the future.

4. Credit inquiries

Credit inquiries list the occasions where third parties have accessed your credit report within two years. Every time a lender checks your credit report, it is counted as an inquiry. Though you can view all credit inquiries, lenders or financial companies may be able to view only a small cross-section. Keep in mind that these inquiries are a result of credit card or loan applications that you have made. So, a potential lender may see multiple credit inquiries on your credit report and surmise that you have made many loan applications in the recent past.

How does CIBIL compute your credit score?

Your final CIBIL score is calculated based on several factors. These are:

  • Your repayment history - contributes to 35% of the score
    Your overall repayment history depends on how successfully you have managed to repay all your debt. Since the weightage given to repayment is so high, ensure that you make timely payments towards all your credit.
  • Your credit balance and utilisation - contributes to 30% of the score
    This section refers to the total credit available to you and how much you have already used. Your credit utilisation ratio is important and calculated as the outstanding balance on your loans or credit cards. If you have used most of your sanctioned credit, you will be considered a risky borrower. A good ratio is 30%, which means that you have used only 30% of your credit.
  • Your duration of availing of credit - contributes to up to 15% of the score
    This refers to the repayment duration and timely repayment within this duration. If you have borrowed credit over a long repayment tenor and have responsibly and successfully repaid it, your score will be positively affected and vice versa.
  • Your new credit - contributes to up to 15% of the score
    Every time you inquire about credit, your score is impacted. This may refer to loans you plan to take or credit cards you want to sign up for. If you have made too many credit inquiries, it makes you seem credit-hungry in the eyes of lenders and affects your score negatively.
  • Your credit mix - contributes to up to 10% of the score
    It is always important to have a healthy mix of credit, which refers to secured and unsecured loans as well as short-term and long-term credit. So, if you have a home loan, a credit card, and a collateral-free personal loan, you will be deemed to have a healthy credit mix.

What is the difference between CIBIL, Equifax, Experian, and High Mark?

These are four credit information companies that function under the RBI’s approval. Their similarities and differences are listed below.


  • It is the oldest and most popular in India today. Also, it offers market insights and portfolio reviews for businesses apart from CIBIL scores and reports for individuals.
  • Its scoring system ranges from 300 to 900, with 900 being the highest and 300 being the minimum CIBIL score.
  • It offers businesses a company credit report and a CIBIL rank.

2. Equifax

  • It was granted its license in 2010.
  • Its scoring system is on a scale of 300 to 900, with 300 being the lowest and 900 being the highest.
  • It also offers additional facilities like credit risk and fraud management, portfolio management, and industry diagnostics.

3. Experian

  • It received its license for operation in India in 2010, but has been an international company since 2006.
  • The Experian score ranges from 300 to 900, with 300 being the lowest and 900 being the highest.
  • It offers several services for consumers and organisations, like customer acquisition, collection and money recovery, customer management, data analytics, customer targeting, and engagement.

4. High Mark

  • It has been in operation since 2007; however, it received a license as a credit information company in 2010.
  • Its score ranges from 300 to 900. While a score of 720 and above is considered good, 640 and below is deemed to be poor.
  • It offers various services for customers, such as portfolio management, alerts, and geo-analytics consulting.

You can choose from any of these companies to calculate your credit score, and so can lenders and other parties.

How to check your CIBIL score

If you are wondering where to check your CIBIL score, you can do it easily by visiting the credit information company's website. Usually, you will need to pay a small fee to check your score.

Check your CIBIL score for free with Bajaj Finserv

Financial companies and lenders also offer you to check your credit score. For instance, Bajaj Finserv lets you check your CIBIL score for free at no extra cost. All you have to do is enter your details and access your credit score for free.

Why do lenders check your CIBIL score before approving your loan?

Since CIBIL score measures your overall creditworthiness, a lender is certain to check your score when reviewing your loan application for a variety of reasons. They are:

  • To check your credit history and past record
  • To see whether you are capable of repaying debts
  • To review your credit balance and understand the risk level of your profile
  • To judge whether you qualify for the loan
  • To decide on the loan amount to offer you and interest rate applicable

What are the factors that affect your CIBIL score?

Given the significance of your CIBIL score, it is important to ensure that it's always towards the higher side. To do this, it is vital to be aware of the factors that affect your credit score and control them accordingly. Here are the factors that affect your CIBIL score:

  • Your income
  • Your existing debts
  • Your past credit repayments
  • Any defaults, delays, or lapses in previous credit repayment
  • Rejections for loans that you have applied for

How does outstanding debt affect your credit score?

The amount of outstanding debt impacts your credit score. Lenders normally check this in the form of the credit utilisation ratio. This refers to the amount of money you are using out of the total credit available to you. The higher the ratio, the lower your credit score. However, this doesn’t mean debt is bad for you. In fact, you will be able to build your credit score only when you take on debt. The key is to pay it off in a timely fashion and not go over your credit card’s or bank account’s limit.

Two reasons why outstanding debt spells bad news for your credit score

1. It maximises your credit utilisation ratio

  • A good credit utilisation ratio is 30% or lower
  • A high ratio means you are using too much credit, which can reduce your credit score

2. It makes repayment of future loans difficult:

  • If you have outstanding debts, it means that you could already be paying high EMIs
  • Borrowing more loans in the future with outstanding debts can create a major repayment burden and even cause bankruptcy

What is a good credit score to avail of a personal loan?

The minimum CIBIL score for a personal loan is 700 or 750, depending on the lender. Having this CIBIL score for a personal loan can boost your chances of getting your personal loan application approved.

What is a good credit score to avail of a business loan?

An ideal CIBIL score for availing a business loan is 700 and above if you are opting for a collateral-free business loan

What is a good credit score to avail of a home loan?

To avail of a home loan you need to ensure that you have a CIBIL score of at least 650 or above. Since a housing loan is a secured loan, lenders have the option of seizing your home if you are unable to repay the loan. This is why a slightly lower credit score is allowed. However, it is in your best interest to maintain a good credit score so you can get a larger loan amount at nominal interest.

Additional Read:What is a good CIBIL score for getting a loan?

How to maintain a good CIBIL score?

You can maintain a good CIBIL score by following these simple steps:

  • Pay your EMIs on time to create a proper track record
  • Avoid having a credit card that you don’t use; cancel dormant credit cards
  • Manage your credit cards carefully by setting payment reminders or limiting your use to one credit card
  • Avoid re-applying for loans or credit cards that you did not get approved for in quick succession
  • Don’t make too many loan applications in a short span of time
  • Choose lengthy loan tenors with care and try to make part-prepayments when you can

How to get a loan despite a poor credit score

  • Borrow from non-banks:
    While non-banking financial companies, like Bajaj Finserv, still need you to have a decent credit score, they tend to have relatively simpler eligibility criteria, which may help you raise funds fast and without too much effort.
  • Apply with a guarantor or co-signer to your loan account:
    Adding a co-borrower to your loan application helps distribute the responsibility of repayment between you and the co-borrower. When your co-borrower has a good score, you will be able to borrow a larger loan amount and boost your chances of approval too.
  • Try to find a secured loan:
    When a loan is unsecured, the lender is more stringent with the eligibility criteria by carefully filtering and selecting the most reliable borrowers. However, if you have collateral to offer, the significance of having a good credit score diminishes.
  • Prove your financial backing:
    If your credit score is poor, your lender will have limited faith in your ability to repay a new loan. So, you can submit evidence about your financial ability to repay the loan. You could show documents like your business’ profit and loss statement, bank balance, bank account statements, FD statements, rental income, etc., to prove to the lender that you have funds to repay the loan.
  • Take measures to improve your score:
    There is no better tactic than simply boosting your credit score. You can do this by various methods, and the change would reflect in your score after a period of six months or a year.
  • Go for informal means of borrowing:
    When you need money and have a bad credit score, try to raise credit from other sources like family or friends. You can then conveniently repay these loans as and when you have the funds.

Additional Read: Get a personal loan on a bad CIBIL score

Smart tips to improve your CIBIL score

  • Don’t be a co-signer for a loan unless you don’t need to borrow around the same time
  • Avoid acquiring too many debts over a short period of time
  • Ensure you repay all your EMIs and credit card bills on time
  • Use debt consolidation loans as and when necessary so that your dues aren’t handed over to a debt collection agency
  • Be cautious about borrowing loans without a proper repayment plan in place
  • Always negotiate your rate of interest with lenders to keep your costs down
  • Don’t borrow the entire amount you receive a sanction for
  • Choose a shorter loan tenor to repay your loan fast and at a lower interest payment
  • Talk to a CA or financial planner to get help on saving taxes and managing your money more efficiently
  • If you don’t have any credit history, borrow a small personal loan and repay it on time to build a credit score

Now that you know everything about your CIBIL credit score, be smart about your financial practices. Try to keep your CIBIL score high and you’ll be able to access funds on your terms.

Additional Read: What is CIBIL and what does it have to do with your credit score?

Considering your credit score and financial profile, Bajaj Finserv brings youInsta Personal Loan Offers, home loans, business loans, and other financial products. This simplifies the process of availing of financing and helps you save on time and effort. All you have to do is share a few basic details and check out your pre-approved offer.

CIBIL Score - How to Check, Calculate and Improve Credit Score – Bajaj Finserv (2024)


How to increase CIBIL score in Bajaj Finserv? ›

Pay your EMIs on time

If you don't make payments on time, it will pull down your CIBIL credit score. Delayed EMI payments are noted in your CIBIL report and include details of the number of days of delay. Here, the best thing to do is to set up an automatic transfer from your bank account to facilitate timely payment.

How to calculate CIBIL score formula? ›

How does CIBIL compute your credit score?
  1. Your repayment history - contributes to 35% of the score. ...
  2. Your credit balance and utilisation - contributes to 30% of the score. ...
  3. Your duration of availing of credit - contributes to up to 15% of the score. ...
  4. Your new credit - contributes to up to 15% of the score.

What is the minimum CIBIL score for Bajaj Finserv? ›

It is measured on a scale between 300 and 900, with 900 indicating maximum creditworthiness. The minimum CIBIL Score required for Bajaj Finserv Insta EMI Card is 720 or above. A score of 750 or above is considered excellent and can fetch favourable terms while availing of the Bajaj Finserv Insta EMI Card.

How do I improve my CIBIL score immediately? ›

How to Increase your CIBIL Score Immediately?
  1. Repay Credit Card Dues on Time. ...
  2. Limit Credit Utilization. ...
  3. New Credit Cards. ...
  4. Keep a Check on Your Credit Report. ...
  5. Opt For Different Types of Credit. ...
  6. Increase your Credit Limits. ...
  7. Keep Old Debt on Your Report. ...
  8. Never Give a Hint of Risk.

How can I increase my CIBIL score from 600 to 750 immediately? ›

7 Ways To Increase Your CIBIL Score From 600 to 750
  1. Repaying on time.
  2. Maintaining a good credit history.
  3. Keeping a low credit utilization ratio.
  4. Avoiding multiple loans/inquiries.
  5. Balancing secured & unsecured loans.
  6. Holding old credit open.
  7. Checking your credit report often.

How can I increase my CIBIL score by 20 points? ›

2. Lower your credit utilization
  1. Pay off your credit cards. The lower your credit card utilization rate is, the better the impact on your credit score. ...
  2. Increase your credit limit on an existing card. If you can't lower your balance on a credit card, request an increase in your credit limit. ...
  3. Apply for a new credit card.
Oct 7, 2023

Can I check my CIBIL score myself? ›

All you need to do is follow these three simple steps: Share some basic information about yourself. Verify your identity by confirming the OTP sent to your mobile number and email ID. Check your CIBIL score and report.

Can I calculate my credit score myself? ›

You can't arrive at precisely the same score as the credit-scoring companies or lenders because they use proprietary formulas to determine your score. However, you can calculate some of the factors that contribute to your score, such as your credit utilization ratio and the length of time you've had credit.

What are the 5 ways credit scores are calculated? ›

A FICO credit score is calculated based on five factors: your payment history, amount owed, new credit, length of credit history, and credit mix. Your record of on-time payments and amount of credit you've used are the two top factors.

Which CIBIL score is good? ›

CIBIL RangeRating
Mar 6, 2023

How much CIBIL score is good for EMI? ›

A credit score closer to 300 is considered to be poor for the EMI card. A credit score closer to 900 is considered to be good for the applicants. This increases the chances of sanction of EMI card to eligible applicants provided the other eligibility criteria are also met by the applicant.

How much does the CIBIL score increase per month? ›

If your score is between 650 and 700, it will take a few months to reach 750. If your score is less than 650, it will take more time. There is no overnight quick fix for improving your score. Just like your health report, it takes some patience, changes in habits, and self-discipline to see results.

How can I raise my credit score 100 points overnight? ›

10 Ways to Boost Your Credit Score
  1. Review Your Credit Report. ...
  2. Pay Your Bills on Time. ...
  3. Ask for Late Payment Forgiveness. ...
  4. Keep Credit Card Balances Low. ...
  5. Keep Old Credit Cards Active. ...
  6. Become an Authorized User. ...
  7. Consider a Credit Builder Loan. ...
  8. Take Out a Secured Credit Card.

How can I increase my 5 points in CIBIL score? ›

Take these steps to increase your CIBIL score and boost your chances of securing credit in the future.
  1. Check Your Credit Report. ...
  2. Make Corrections to Errors. ...
  3. Note Your Credit Utilization Ratio. ...
  4. Don't keep applying for credit if rejected. ...
  5. Keep the frequency of applications low. ...
  6. Pay your loans. ...
  7. Pay your credit cards on time.

Can I rebuild my CIBIL score? ›

Pay Your Dues Regularly

Making all of your loan/credit card payments on time and in full, starting immediately away is one of the most efficient ways to restore your credit score. Your score will be affected immediately and significantly as a result of this.

How to increase CIBIL score from 400 to 750? ›

How to Increase CIBIL Score from 500 to 750
  1. Lowering Credit Utilization Ratio. ...
  2. Avoiding Closure of Older Accounts. ...
  3. Improving Payment History. ...
  4. Monitoring of Credit Reports. ...
  5. Multiple Credit. ...
  6. Avoid Inquiries about Credit Cards. ...
  7. Pay EMIs on Time. ...
  8. Always Pay the Complete EMI Amount.
Jul 17, 2023

How to increase CIBIL score from 550 to 750? ›

Steps to Increase CIBIL Score from 500 to 750
  1. Lowering Credit Utilization Ratio. ...
  2. Avoiding Closure of Older Accounts. ...
  3. Improving Payment History. ...
  4. Monitoring of Credit Reports. ...
  5. Multiple Credit. ...
  6. Avoid Inquiries about Credit Cards. ...
  7. Pay EMIs on Time. ...
  8. Always Pay the Complete EMI Amount.

How can I increase my CIBIL score from 500 to 800? ›

When you take a loan, repay it successfully, it will give your credit score a boost. Maintain a healthy credit mix: It is better to have a right combination of secured loans (such as Home Loan, Auto Loan) and unsecured loans (such as Personal Loan, Credit Cards) of a long and short tenor to build a good credit score.


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