CIBIL score or Credit score is a three-digit number which is used to as a measure of your creditworthiness. Lenders such as NBFCs and financial institutions take into account this score to decide whether they will approve you for a loan or a credit card.

Who Determines the Scores?

There are three main credit bureaus - Experian,Equifax and TransUnion which analyse your payment history and scores it between 300 to 850. These are notified to you in the form of credit reports. The scoring system for your CIBIL score is highly confidential and they score individuals based on their proprietary models. The score does not factor in details such as your gender, race, national origin, religion etc.

It is no surprise that you may end up having different scores from different lenders. This is because it is not necessary that the lender may report to all three bureaus. Hence, the score differs as per the bureau the lender reports to. It is important that you should know how to read and understand your CIBIL Report.

What Factors are taken into Account while Scoring?

Your credit score may differ but they are based on the below factors. Regularly checking your credit report will help you keep a tab on the scores and take measures to improve them, if need be. As a score of 750+ or more is considered and can help you easily avail loan or credit card of your choice. Also check what is the minimum cibil score for personal loan.

  • The payment history
  • How long you’ve had credit?
  • The types of credit you have (credit cards, auto loans, student loans, mortgages, etc.)
  • Your credit limits and how much of those limits you are using
  • How much debt you have?
  • Hard inquiries on your credit report