A CIBIL score (issued by TransUnion CIBIL) is a 3-digit credit score ranging from 300 to 900, that represents your creditworthiness in India. Banks and lenders use it to decide whether to approve loans or credit cards for you
- Repayment history - Timely payment of EMIs and credit card dues.
- Credit utilization ratio - Using too much of your available credit lowers the score
- Credit mix - A balanced mix of secured (home/auto loan) and unsecured (credit card/personal loan)credit is better.
- Number of hard inquiries - Too many loan/credit card applications can reduce the score.
- Length of credit history - Older accounts help build trust.
Determines loan eligibility (home loan, car loan, personal loan, etc.). Impacts interest rates (higher scores often mean lower interest). Important for credit card approvals and even some job/employment background checks.
"Any adult Indian with a PAN card and some credit activity (loan or credit card) is eligible to get a CIBIL score"