CIBIL: Credit Score & Report - How is CIBIL Score calculated?

CIBIL Score in India is a three digit number. CIBIL score range lies between 300 to 900, which signifies the creditworthiness of an individual based on his credit profile and past repayment track record.

All four credit scoring agencies in India; CIBIL, Experian, Equifax and Highmark use their proprietary calculations and algorithms to estimate your best credit score.

Banks check CIBIL score before taking a decision to sanction you a loan. Hence, a Good CIBIL Score is one of the most important factors that can help you get the best loan at cheapest rates.


CIBIL Score Range

What It May Mean For Your Credit Health?

750 - 900

The CIBIL score range of 750-900 shows your exemplary credit history which will help you to get the loan with best market rates.


The score between this range shows your impeccable consistency in repayments made in the past.


With subject to credit report and eligibility, you will easily obtain home loan, car loan and other unsecured loans such as personal loans and credit cards.

700 - 750

CIBIL score in this range also shows a great track record of the past repayments but sometimes banks need to conduct further credit analysis depending upon the internal credit policies to judge your credit history more precisely.

550 - 700

CIBIL score in this range is considered low that reflects some of the irregularities in the past payments.


Banks may feel dicey to give you a loan except for an exceptional credit check. There are some banks who may consider you for loans but with the higher collateral and interest rates, based on your CIBIL score calculation.

300 - 550

CIBIL Score in this range is considered poor that reflects your defaults such as write offs, past delinquencies and over leverage. You may face prime difficulty in obtaining the loan from any of the banks.

Required CIBIL Score for a Personal Loan

What is CIBIL Score?

There is no good or bad score. Lenders tend to be little apprehensive in granting loans to borrowers with scores less than 700 for secured loans such as home loans. Banks in India tend to target customers with CIBIL score more than 750 or above for unsecured loans like personal loans. Get an estimated impact of CIBIL score range from 300 to 900 on your credit health.

A high CIBIL score, along with a clean CIBIL report on all key factors that are used for CIBIL score calculation is one of the most important eligibility criteria for getting a personal loan from leading banks like HDFC Bank, SBI, Axis Bank, ICICI, Citibank and others. A credit score of 650 and above is required to get a personal loan.

How to remove my name from CIBIL Defaulters list?

CIBIL does not publish any CIBIL Defaulters list. If you have defaulted in your loan payments, the same gets reflected as a lower CIBIL score in your report. A low score would mean that you are less likely to get a loan from banks and NBFCs in future, as and when your need it.

Once, any negative credit event such as delayed payment or payment default is marked in your CIBIL report, it may hamper your chances of getting a loan for years to come. Rebuilding credit score is a long drawn process. Hence, prevention is always better and easier to be able to maintain a healthy CIBIL Score. You can achieve and maintain a good score by being prompt and through regular CIBIL score calculation. Check CIBIL score online and be responsible in paying and meeting your existing loan obligations.

How is CIBIL Score calculated?

CIBIL score online is calculated by various credit bureaus using their own proprietary algorithm, but the main elements of score composition revolve around loan and credit card repayment behavior of an individual.

A CIBIL Blog mentions that four factors pertaining related to credit behavior of a borrower are considered for CIBIL score calculation. These factors are :

Credit History: Your past credit repayment track record or your credit history is of the highest importance in the CIBIL score calculation. Your past credit track record has a weightage of around 30% in the formula for calculating your CIBIL score online. All banks and NBFCs share the payment track record of each individual borrower with CIBIL on a regular basis. The credit bureau compiles data and uses the same for score calculation. This information captured is a month-on-month record of the latest 3 years of your payments towards your bills and EMIs capturing timely payments, delayed payments, settled and written off amounts.

Tip - Always make timely payments on all loan dues. Never leave any loan unsettled even if there has been a default or delay in payments.

Credit Utilization: Your current outstanding loan obligations divided by your available limit is used to calculate the level of your credit utilization. A high and rising credit utilization ratio may have an adverse impact on your score as it signifies your rising loan burden and monthly obligations. The credit utilization ratio has a weightage of 25% in your CIBIL score calculation.

Tip - Restrict your credit card over-dues to up to 50% of your credit card limit. Avoid taking multiple loans over a short period of time.

Credit Mix: Your loan portfolio composition in terms of proportion of secured and unsecured loans also has a bearing on your score. Higher proportion of unsecured loans in your total loans portfolio has a negative bearing on your credit score. Credit Mix is estimated to have a weightage of 25% in your score calculation.

Tip - Restrict the proportion of unsecured loans in the total loans portfolio to less than 30%. Avoid holding more than 2-3 credit cards.

Other Factors: In addition to the above three factors, the number of credit applications you have submitted in the last few months also have a bearing on your CIBIL score. If your CIBIL report shows multiple loan applications that have been rejected in the recent past, it gets reflected in a lower credit score. Banks are also averse to lend to borrowers, who have been rejected by other banks. These other factors are estimated to have a weightage of up to 20% in your CIBIL Score calculation. Hence, it is extremely important to apply to select banks after a thorough research and comparison of loan schemes of all banks in India after you check your CIBIL score. This can be done by CIBIL score check free online by PAN number.

Tip - Do not apply for multiple loans over a short period of time. If you do not have other loans, spend actively on your credit card to build credit history.

How to check credit score in India?

CIBIL score is provided by CIBIL along with a detailed Credit Information Report (CIR) on payment of ₹ 550 to CIBIL. From 1st January, 2017 you can ask CIBIL or any of the other bureaus, Experian, Equifax or Highmark to issue a copy of a free credit report along with a score without paying any charges. However, to stimulate your CIBIL score based on your past credit history, you can also choose to use MyLoanCare Free CIBIL Score Calculator. You can check CIBIL score free by using a PAN card.

How to Check CIBIL Score Online?

In the online world, checking your CIBIL score is just clicks away. But how to check the CIBIL score for free? The answer is here. Various online finance market places like MyLoanCare can calculate your estimated score fairly accurately. All you have to do is visit their site, fill your details in the ‘Free CIBIL score calculator’ and get your estimated score.

Besides this, you can always get your credit score at CIBIL’s official website ( ) by following these simple steps:

Click on the ‘Get Your Credit Score’ or ‘Check my CIBIL score’.

Choose a subscription product.

Fill in the details relating to your PAN and identity proof etc and check CIBIL score by PAN card.

Click on ‘Proceed to Payment’.

Once you’re redirected to the payment gateway, make the payment.

Your CIBIL report and score will be sent to your email ID within 24 hours or to your shipping address if you opt for a hard copy.

How do I check CIBIL Score by PAN card?

PAN or Permanent Account Number is a common document that gives each individual a unique identity, allowing them to associate the PAN number with all their financial transactions. When a PAN is used for viewing your CIBIL, it makes it easier and quicker to locate your details and download your CIBIL report.

Free CIBIL Score: You need to follow these simple steps to check your CIBIL Score for free by using your PAN card:

Visit the official website of CIBIL

Fill in your PAN card and other details

Click on ‘Submit’

You can choose to get a hard copy or a soft copy of your credit score report, following which your CIBIL report will be delivered via post or email within 24 hours.

Paid CIBIL Report: In case you’ve downloaded a free CIBIL report earlier during the year, you will not be eligible to get a second free CIBIL report in the same year. However, you can still purchase the CIBIL report with the following steps after the CIBIL score calculation:

Visit the official website of CIBIL (

Click on the ‘Get Your Credit Score’.

After choosing your subscription product, and filling in the details, click on ‘Proceed to Payment’.

Once you’re redirected to the payment gateway, make the payment.

Your CIBIL report and score will be sent to your email ID within 24 hours.

Why should you know your CIBIL Score?

Ensure Accuracy: Your CIBIL score online contains information of your credit history and payment track record of your loans. By reading your CIBIL report annually you can ensure that the information reflected in the report is accurate. If you find any corrections in the report, then you can address the problem on the dispute resolution forum of CIBIL.

Keep an eye on your loan accounts: A CIBIL report is a detailed summary of all your loan accounts and credit cards. CIBIL report help you in monitoring your loans and credit cards. If your CIBIL score calculation shows any loan that you have never availed, then you can flag the problem on the credit dispute resolution board for resolution.

Maintaining your credit health: CIBIL score calculation reflects your credit position. It tells you about the debt owned and the outstanding amount of your loan accounts and credit cards. If your CIBIL report shows low CIBIL score, then you can take active measures to improve your credit health.

In summary, CIBIL reports allows you to conduct a complete financial check up just like a health checkup to ensure that there is no financial stress or adverse factors impacting your credit health.

How to improve CIBIL score?

Some of the important tips to maintain the best credit score has been included below:

Keep your CIBIL Report free of errors:

It is crucial to check your CIBIL Score on a regular basis because there are cases when you have been a good borrower and have repaid your loans on time. However, due to system errors, your CIBIL score is lower than what it should be. In such cases, you should immediately approach the credit bureau.

Do not miss or delay your payment:

The track record of the payment made towards credit card and loan makes up to one-third of the score. Any kind of late payment will adversely affect your CIBIL rating and bring you down on the CIBIL score range. Thus, if you start paying off your bills on time, you can immediately see a positive impact on your CIBIL score.

Do not revolve your credit card balance:

Being a balance payer of a credit card has a great impact on your score. It means, whenever a credit card bill is due, make the full payment instead of the minimum amount. This definitely improves your credibility to the lender.

Limit the utilisation of your credit limit:

The easiest way to improve your CIBIL score is to avoid utilisation of your full credit card limit. The trick is to limit the utilisation of your monthly credit card limit to 50% of the total. It is because utilisation of your credit limit more than 50% generally signifies that you might have financial issues. This signifies that you may not be in a position to keep aside some amount to pay off your debt on time. Hence this leads to a drop in the CIBIL score.

Do not go for credit card or loan settlement:

Credit card or loan settlement happens when you are unable to pay your EMI on time. The borrower then offers to close the entire debt for a mutually agreeable amount. This settlement amount is usually much lower than the total amount that needs to be repaid. However, once your credit card is "settled" for a lesser amount, you would get a very bad spot on your CIBIL report.

Avoiding multiple credit card or loan application in a short period of time:

If you make multiple enquiries or applications for a loan in a short period of time, then it is not a positive signal. Lenders may get edgy about your credit profile, feel that you are cash crunched and may be hesitant to lend to you if other banks have rejected your loan application recently. This will also move you towards a lower limit on the CIBIL score range.

Opt for secured loans or credit cards:

Even if you have a low CIBIL score, you could easily avail a secured loan like a Gold Loan. Or avail a secured credit card which is issued against a collateral. In this case, your CIBIL score would not be required to avail the loan as it is against a collateral. However, disciplined usage and timely repayment of a gold loan or a secured credit card would surely help your score to increase.

Usually, it takes about 6 to 12 months to improve your score, if you take the right steps. So, all that is needed from someone with a low score is commitment, patience and self-discipline.


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