CIBIL Score Ranges: What Does your CIBIL Score Mean

One’s CIBIL or credit score is a numerical expression which denotes the creditworthiness of a borrower. This three-digit number is primarily based on credit reports that lenders submit to the credit bureaus. In a loan application process, it plays a greater importance. Here, one will get a comprehensive idea about CIBIL score ranges and what each represents.

What are the different ranges of credit scores?

Credit score varies on the basis of the evaluation of a borrower’s creditworthiness. It is categorised into five levels each denoting varied credit history.

Less than 550 (Poor)

This range denotes higher credit risk thus chances of getting a loan decrease. One of all the ranges, this range is the poorest and can lead to loan request rejections.

Between 550 to 649 (Average)

A lender does not easily give credit approvals if one’s CIBIL score lies within this range. Besides, lending institutions might ask for collateral for security purposes along with charging a high rate of interest.

Between 650 to 699 (Fair)

This range represents a fair credit history. However, to get favourable loan deals and terms, one would need to improve their CIBIL score.

Between 700 to 749 (Good)

A score within this range is considered to be a good cibil score range as it represents good credit management skills. Additionally, this maximises the chances of getting hassle-free credit approvals.

Above 750 (Excellent)

Individuals having a credit score above 750 denotes a high creditworthiness. Additionally, applicants with this CIBIL score range will get easy credit approvals along with preferable loan terms.

Importance of good CIBIL score range

There are varied factors which affect an individual’s credit score like payment history, credit mix, credit inquiries, credit utilisation, etc. While funding a home loan to an individual, lenders go through their CIBIL score to understand the creditworthiness. Besides, the three-digit numbers denote the repayment ability of a borrower.

Lenders prefer applicants with higher CIBIL scores as they represent low risk. Additionally, an applicant with a higher credit score has more negotiating power while applying for a home loan. Henceforth, one should keep a good credit score to get the best loan deals from various lending institutions.

How to check the CIBIL score range online?

Here is a step-by-step guide on how one can check their credit score by using the CIBIL score ranges calculator.

Step 1: After visiting the official website of CIBIL, click on the ‘Get free CIBIL score & report’ option.

Step 2: Provide a few details like name, mail ID, and password.

Step 3: Attach one ID proof followed by entering the applicant’s DOB, contact and PIN code.

Step 4: Click on the ‘Accept and continue’ option.

Step 5: Enter the OTP sent by the lender and click on the ‘continue’ button.

Step 6: Select the ‘dashboard’ option and then log in.

Step 7: After the user is redirected to the next page, click on the member login’ option.

Step 8: Log in and check your CIBIL score.

Moreover, an applicant with a higher credit score can get pre-approved loan offers which hasten the entire process of loan application. One can enter a few basic details to check their eligibility. Some of the products on which this offer is available are home loans, LAP, etc.

An individual can increase their credit scores by considering some of the important things. One can repay their loan without any delays or by avoiding over-leveraging to improve their credit score. Besides, an individual can maintain a low credit utilisation to boost their CIBIL score ranges between 750 and 900.