CIBIL score (now officially called TransUnion CIBIL score) is a three-digit numerical summary of your credit history, ranging from 300 to 900. It is maintained by TransUnion CIBIL, India's oldest credit bureau, and is the most widely used credit score by banks for loan decisions.
Score ranges: - 750-900: Excellent — Best loan terms and interest rates - 700-749: Good — Loan approval likely, decent rates - 650-699: Fair — Loan possible but with higher rates - 600-649: Below average — Difficult to get loans, very high rates - Below 600: Poor — Loan rejection likely
Factors that affect CIBIL score: 1. Payment history (35%): Timely EMI and credit card payments 2. Credit utilization (30%): How much of your credit limit you use 3. Credit history length (15%): Longer history is better 4. Credit mix (10%): Mix of secured (home/car loan) and unsecured (credit card/personal loan) credit 5. Recent inquiries (10%): Multiple loan applications in short time hurt the score
CIBIL score and home loans: - 750+ score: Best interest rates, quick approval, higher loan amounts - 700-749: Approval likely but rates may be 0.1-0.3% higher - Below 700: Approval uncertain, significantly higher rates, lower LTV ratio - Below 650: Most banks will reject; may need to improve score first
How to check your CIBIL score: - Visit cibil.com for a free annual check - Many banks and fintech apps provide free CIBIL score access - Checking your own score does NOT lower it (only hard inquiries by lenders do)
Tips to improve your score before applying for a home loan: - Pay all EMIs and credit card bills on time for 6-12 months - Keep credit card utilization below 30% - Don't apply for multiple loans/cards simultaneously - Don't close old credit cards (they add to credit history length) - Check your report for errors and dispute inaccuracies