What is a CIBIL Score and Why Does It Matter?
A a CIBIL score, is a three-digit value that analyzes one’s possibility of borrowing. It lies in the range from 300 to 900, where higher numbers depict better financial stability. CIBIL is the acronym that stands for Credit Information Bureau (India) Limited; now it is TransUnion CIBIL, one of the four credit bureaus in India. The others are named CRIF High Mark, Experian, and Equifax.
Verifying your CIBIL score in the future may be a very wise move to make, especially if you plan to take out a loan. It shows you the big picture of where you are and will help you in tailoring your loan query accordingly. We provide a free credit score and report, enabling you to quickly get your report, analyze it, and take measures to rectify your score if it is required.
CIBIL – The Full Form and History
The Credit Information Bureau (India) Limited, or CIBIL, as it is called for short, was established in August 2000 as India’s first credit information company. It collects as well as publishes the financial records of individuals and businesses, such as loan repayments, credit card usage, and borrowings. The banks and other financial institutions provide it using the data to enable lenders to assess the borrowers’ creditworthiness for the loan.
CIBIL is regulated by the Reserve Bank of India (RBI), which is acting under the Credit Information Companies (Regulation) Act, 2005. It partners with banks and credit institutions, gathering and updating credit data monthly.
Need to verify your CIBIL score? Get your Credit report for free now and take command of your financial future!
A CIBIL Score That is Good?
A CIBIL score of 760 and above is considered to be high, which is generally identified as good. More is better for your prospects for applying for a loan or credit card if you have a score like 900. However, you should note that there are some variations in the same scores of different credit bureaus. One bureau can assign a 760+ rating to you while the other one can provide you with a rating below 700. Hence, it is always advisable to check your credit score from multiple bureaus to be updated on the issue.
What Are the Factors That Affect Your CIBIL Score?
Your credit score is made from four deciding factors:
- Credit Mix—The ratio of secured debts (as home loans) to unsecured debts (like credit cards)
- Repayment History— Whether you make your EMIs and credit card bills payments on time
- New Debt—The number of recent loan or credit applications
- Credit Utilization Ratio—How much of your available credit you use
How Your CIBIL Score Impacts Your Loan?
When you apply for a loan with Poonawalla Fincorp, your credit score plays a crucial role. It affects:
- Loan Approval—A higher score improves your chances of getting approved.
- Interest Rate—A good score can help you secure lower interest rates
- Loan Amount & Tenure—Lenders may offer better terms to those with strong credit scores
In general, a high score, such as 750 or more, from the CIBIL system is the best. Because of being with Poonawalla Fincorp, which is fast and easy, you will have the opportunity to go through the application and disbursal without any interruptions.
What Is a CIBIL Report?
Your CIBIL report is something like a grade card in the case of education—it is a register of your credit history, personal data, workplace data, loan and credit card accounts, and granted loan applications by lenders. A three-digit number is, in fact, at the center of the report, and this represents a CIBIL score. This score is computed from payment history, credit usage, and other factors that show your creditworthiness and behavior.
The requirement for a CIBIL score is to have at least six months of credit history. If you are inexperienced in credit and have little data, your report may be blank and should show NH/NA (No History/Not Available) instead of a score.
Why Does a Good CIBIL Score Matter for Loans?
Your credit score plays a big role in whether banks approve your loan or credit card application. CIBIL calculates your score using a special algorithm, but at its core, it’s all about how well you manage credit—do you pay your bills on time? Do you keep your credit card balances in check?
A high CIBIL score signals to banks that you’re financially responsible, making them more likely to offer you loans or credit cards. On the flip side, a low score could mean higher interest rates.
Your CIBIL Score Online & Offline
Having a high CIBIL score is very important in our financial life—it’s a ticket to mutual funds, a credit card, loan eligibility, and a tool to track your financial situation. Good news is, it is no longer a Herculean task to check your credit score, as you can do it offline as well as online.
Checking Your CIBIL Score Online (Step-by-Step Guide)
In compliance with the regulations of the Reserve Bank of India (RBI), which were introduced in January 2017, all four licensed credit bureaus are obliged to provide one credit report & score for free in a year to the clients. Here’s how you can get yours now:
- Go to the official website of a credit bureau such as CIBIL, Experian, Equifax, or CRIF High Mark.2.
- Register with the website or sign in to your account
- Enter your details (PAN, Aadhaar, or other KYC documents).
- Answer a few verification questions to confirm your identity.
- Get your credit score and report instantly!
It’s that simple! Checking your score regularly can help you track your financial health and spot any errors before they cause issues.
Checking Your CIBIL Score Offline
If you prefer the old-school way or don’t have internet access, you can check your CIBIL score offline through your bank or financial institution. Here’s how:
- Visit your nearest bank or NBFC branch (especially if you have a loan or credit card with them).
- Request a credit score check at the customer service desk.
- Provide your KYC documents (PAN, Aadhaar, or any valid ID).
- Pay a small fee (some banks may charge for this service).
- Get your credit score and report—either printed or via email.
Why Your CIBIL Score Matters ?
Your CIBIL score is a three-digit number (300-900) that reflects your creditworthiness. The higher the score, the better your chances of getting loans at lower interest rates and quick approvals. A score above 700 is generally considered good, while anything closer to 900 puts you in the best position for financial benefits.
How to Check Your CIBIL Score—A Step-by-Step Guide
Wondering how to check your CIBIL score? Here’s a simple breakdown to help you access your credit score online in just a few minutes!
Step 1: Visit the Official CIBIL Website
Go to the CIBIL website or any other authorized credit bureau’s site.
Step 2: Fill Out Your Basic Details
Enter your name, contact number, email address, and other required details, then click ‘Continue’ to proceed.
Step 3: Provide Your PAN and Additional Information
Enter your PAN number carefully, as it’s essential for fetching your credit history. Any errors here could delay the process.
Step 4: Answer Credit-Related Questions
You’ll be asked a few questions about your existing loans and credit cards. Answer them correctly, as this helps generate your credit report accurately.
Step 5: Choose Your Subscription (Or Skip It!)
You’ll see options for paid subscriptions that offer multiple reports per year. If you only want the free annual report, just click ‘No Thanks’ at the bottom of the page.
At this point, your CIBIL account will be created, and you’ll receive a confirmation message.
Step 6: Log In & Verify Your Identity
Use the login credentials created earlier to sign in. To proceed, you’ll need to verify your identity through an email authentication link and a one-time password (OTP).
Once verified, you’ll be asked to set a new password and log in again.
Step 7: Confirm Your Personal Details
Your details should appear automatically. If not, enter your contact number and other necessary information, then hit Submit.
Step 8: Access Your CIBIL Score & Report
Once you submit the form, you’ll be redirected to your dashboard, where your CIBIL score will be displayed. You can also view and download your credit report for further insights.
Why Checking Your CIBIL Score Regularly Matters?
Your credit score isn’t static—it changes monthly based on updates from banks, financial institutions, and credit agencies. Keeping an eye on it helps you:
– Spot errors or discrepancies early.
– Understand how your financial behavior impacts your score.
– Stay prepared before applying for a loan or credit card
1. Pay and Check Your CIBIL Score Online
If you want unlimited access to your CIBIL score and a detailed credit report, a paid subscription is the way to go. Here’s how you can get started:
Steps to Get Your CIBIL Score with a Paid Subscription
A. Visit the CIBIL website and explore the available subscription plans.
B. Select a plan that best suits your needs.
| Plan | Price |
| 1 Month | ₹550 |
| 6 Months | ₹800 |
| 12 Months | ₹1,200 |
C. Click ‘Subscribe Now’ to proceed.
D. Enter your details and create an account.
E. Make the payment using a debit card, credit card, net banking, or UPI.
F. Verify your identity with an OTP sent to your registered mobile number.
G. Get instant access to your full CIBIL report and score after successful payment.
Check Your CIBIL Score via Banks & Financial Apps
Many banks and financial platforms offer free CIBIL score checks through their apps. Some of these include:
- Banks—HDFC, ICICI, SBI, Axis, Kotak Mahindra
- Credit Card Apps—Paytm, CRED, BankBazaar
- NBFCs—Bajaj Finserv, Tata Capital, and more
Simply log in to the respective app and look for the “Check Credit Score“ option to get your CIBIL score instantly!
2. Credit Score Ranges and Their Impact
| Score Range | Category | What It Means |
| Below 300 | No Score/No History | You haven’t taken a loan or credit card before, so no credit history exists. Start building credit to access better financial opportunities. |
| 300-550 | Very Poor Credit Score | Your credit profile is weak. Identify problem areas in your credit report and take steps to improve your score. |
| 551-620 | Low Credit Score | A history of missed payments or high credit usage has impacted your score. Immediate action is needed to rebuild your credit. |
| 621-700 | Fair Credit Score | Your score is improving, but it’s not yet strong enough for the best credit offers. Work on responsible credit habits. |
| 701-759 | Good Credit Score | You have demonstrated responsible credit behaviour. Banks and NBFCs are likely to approve your credit applications. |
| 760+ | Excellent Credit Score | You have an outstanding credit history and qualify for the best loan and credit card deals. |
Smart Tips to Boost Your CIBIL Score
Your CIBIL score plays a crucial role in getting approved for loans and credit cards. A score above 700 is ideal, while anything lower can make borrowing difficult. But don’t worry—you can improve it with smart financial habits. Here’s how:
- Pay on Time—Late EMIs and credit card payments hurt your score. Set reminders or automate payments to avoid missing deadlines.
- Limit Borrowing—Too many loans at once can signal financial trouble. Clear existing debts before applying for new ones.
- Maintain a Healthy Credit Mix— A balance of secured (home and auto loans) and unsecured (credit cards and personal loans) credit helps build a strong score.
- Apply for Credit Wisely— Only borrow what you need and can repay. Frequent loan applications can lower your score.
- Monitor Joint Accounts—If you co-sign or guarantee a loan, you’re equally responsible for payments. A default by the other party can hurt your score.
- Check Your Credit Report Regularly— Errors in your report can impact your score. Review it often and dispute any inaccuracies immediately.
- Keep Credit Utilization Low—Use less than 30% of your credit limit. Increasing your limit (without overspending) can improve your score.
Building a good CIBIL score takes time, but consistent smart choices will get you there!
Factors That Affect Your CIBIL Score
Your CIBIL score (credit score) is a key factor that lenders consider when approving loans or credit cards. It ranges from 300 to 900, and a higher score improves your chances of getting credit on favorable terms. Here are the key factors that impact your CIBIL score:
1. Payment History (35%)
- Timely repayment of loans & credit card bills boosts your score
- Late payments, defaults, or loan settlements lower your score
- Even one missed payment can negatively impact your creditworthiness
2. Credit Utilization Ratio (30%)
- Using more than 30% of your credit limit affects your score
- High utilization suggests financial stress and can lower your score
- Keep your credit card spending in check to maintain a good score
3. Number of Hard Inquiries (10%)
- Every time you apply for a loan or credit card, the lender checks your CIBIL report (called a hard inquiry)
- Multiple loan applications in a short time can reduce your score
- Apply for credit only when necessary to avoid frequent hard inquiries
4. Credit Mix (10%)
- A healthy mix of secured loans (home/car loan) and unsecured loans (personal loan/credit cards) improves your score
- Relying too much on unsecured loans can negatively impact your score
- Having a diverse credit portfolio demonstrates responsible credit behavior
5. Length of Credit History (10%)
- Older credit accounts contribute positively to your score
- Keeping long-standing credit cards active helps maintain a good history
- Closing old credit accounts reduces your total credit age, affecting your score
6. Loan & Credit Card Defaults
- Defaulting on a loan or credit card severely damages your score
- Settling a loan instead of full repayment negatively impacts your creditworthiness
- Always pay at least the minimum due amount to avoid being marked as a defaulter
7. Errors in Credit Report
- Incorrect loan details, unauthorized transactions, or identity mismatches can lower your CIBIL score
- Regularly check your CIBIL report at www.cibil.com to spot and rectify errors
- Raise a CIBIL dispute if you find incorrect information in your report
8. Frequent Credit Card Closure
- Closing old credit cards reduces your total credit limit, increasing your credit utilization ratio
- A shorter credit history affects your creditworthiness
- Keep old cards active by using them for small transactions
To maintain a healthy 750+ CIBIL score, focus on timely repayments, responsible credit usage, and regular credit report checks!
Factors That Affect Your CIBIL Score
Your CIBIL score (credit score) is a key factor that lenders consider when approving loans or credit cards. It ranges from 300 to 900, and a higher score improves your chances of getting credit at favorable terms. Here are the key factors that impact your CIBIL score:
1. Payment History (35%)
- Timely repayment of loans & credit card bills boosts your score
- Late payments, defaults, or loan settlements lower your score
- Even one missed payment can negatively impact your creditworthiness
2. Credit Utilization Ratio (30%)
- Using more than 30% of your credit limit affects your score
- High utilization suggests financial stress and can lower your score
- Keep your credit card spending in check to maintain a good score
3. Number of Hard Inquiries (10%)
- Every time you apply for a loan or credit card, the lender checks your CIBIL report (called a hard inquiry)
- Multiple loan applications in a short time can reduce your score
- Apply for credit only when necessary to avoid frequent hard inquiries
4. Credit Mix (10%)
- A healthy mix of secured loans (home/car loan) and unsecured loans (personal loan/credit cards) improves your score
- Relying too much on unsecured loans can negatively impact your score
- Having a diverse credit portfolio demonstrates responsible credit behavior
5. Length of Credit History (10%)
- Older credit accounts contribute positively to your score
- Keeping long-standing credit cards active helps maintain a good history
- Closing old credit accounts reduces your total credit age, affecting your score
6. Loan & Credit Card Defaults
-
Defaulting on a loan or credit card severely damages your score
-
Settling a loan instead of full repayment negatively impacts your creditworthiness
-
Always pay at least the minimum due amount to avoid being marked as a defaulter
7. Errors in Credit Report
- Incorrect loan details, unauthorized transactions, or identity mismatches can lower your CIBIL score
- Regularly check your CIBIL report at www.cibil.com to spot and rectify errors
- Raise a CIBIL dispute if you find incorrect information in your report
8. Frequent Credit Card Closure
- Closing old credit cards reduces your total credit limit, increasing your credit utilization ratio
- A shorter credit history affects your creditworthiness
- Keep old cards active by using them for small transactions
Pro Tip: To maintain a healthy 750+ CIBIL score, focus on timely repayments, responsible credit usage, and regular credit report checks!
Benefits of a Good CIBIL Score
The advantages of a high credit score are:
1. Loans With Lower Interest Rates: Applicants with higher credit scores can access loans with lower interest rates. It signifies your ability for timely repayments without defaulting on your loans.
2. Flexible Repayment Tenure: A good CIBIL score allows flexible repayment tenure. Moreover, with a long tenure, you can make successful repayments within the allotted schedule.
3. Increased Chances of Credit Approval: A good CIBIL score of 750 and above increases your chances of loan approval. You can get the best terms and a seamless loan application process with simple paperwork.
4. Better Chances to Access Pre-approved Loans: One of the many benefits of a good credit score is improved eligibility for pre-approved loans and credit cards. Moreover, with a pre-approved loan offer, you do not need to go through extensive paperwork.
5. Higher Credit Limit: With an excellent credit score, you can get a higher credit limit. A higher credit limit signifies a lower credit utilization ratio, which is an essential factor to improve your overall creditworthiness.
6. Increased Negotiating Power: With a high CIBIL score, your negotiating power increases. You can negotiate loan terms that best suit your financial needs. You can also ask for a higher sanction amount from your lender.
7. Seamless Access to Premium Credit Cards: A significant advantage of a high credit score is that you can access premium credit cards from top credit card companies.
8. Increased Credit Card Limit: Achieving a high credit score raises your credit card limit because it reflects your responsible credit behavior and timely bill repayment. On the other hand, it allows lenders to perceive lower lending risks, making you eligible for loans at lower interest rates.
CIBIL Credit Report Checklist
If you’re looking to purchase your CIBIL Rank and Company Credit Report (CCR), it’s important to submit the right documents. This ensures that the information is provided only to the rightful owner. Below is a document checklist based on the type of business entity.
For Public & Private Limited Companies
Required Documents:
✔ Address proof in the company’s name (any one of the following):
- Telephone or electricity bill
- Bank passbook or account statement
- Registered lease/sale agreement of office premises
- GST certificate
- Udyam certificate
- Address proof issued by Scheduled Commercial Banks/Multinational Banks
- Registration certificate under the Shops and Establishment Act
✔ Additional Documents:
- Board resolution with an authorized signatory list and specimen signature
- Company PAN
- ID proof of the authorized signatory (PAN/Driving License/Passport)
Note: All documents must be attested by the Company Secretary or any Board Director.
For Corporates
✔ Address proof in the company’s name (any one):
- Landline telephone bill
- Electricity bill
- Bank passbook or account statement
- Registered lease/sale agreement
- GST or Udyam certificate
- Proof of address issued by a Scheduled Commercial Bank/Multinational Bank
- Shops and Establishment Act registration
✔ Additional Documents:
- Board resolution (authorized signatory list + specimen signatures)
- Company PAN (attested by the CS)
- Authorized signatory’s ID proof (PAN/Driving License/Passport)
Note: Documents must be attested by the Company Secretary.
For Proprietorship Firms
✔ Address proof in the firm’s name (any one from the above list)
✔ Additional Documents:
- Proprietor’s PAN card
Note: Documents must be certified by the proprietor.
For Partnership Firms
✔ Address proof in the firm’s name (any one from the above list)
✔ Additional Documents:
- Partnership deed or registration certificate (if registered)
- Authorized signatory list with specimen signatures
- PAN card of the partnership firm
Note: Documents must be self-attested by the partner making the request.
For Trusts
✔ Address proof in the trust’s name (any one from the above list)
✔ Additional Documents:
- Trust deed or registration certificate (if registered)
- List of trustees (certified by the managing trustee or CA)
- PAN card of the trust
- PAN card of the trustee
Note: Documents must be self-attested by the trustee making the request.
For Hindu Undivided Families (HUFs)
✔ Address proof in the HUF’s name (any one from the above list)
✔ Additional Documents:
- Deed of declaration of HUF/list of coparceners
- PAN card of HUF
- PAN card of Karta
Note: Documents must be certified by the Karta.
For Registered Societies
✔ Address proof in the society’s name (any one from the above list)
✔ Additional Documents:
- Registration certificate under the Societies Registration Act
- Committee resolution for authorized signatories
- PAN card of the society
- PAN card of the authorized signatory
Note: Documents must be certified by the authorized signatory.
For Government Bodies & Statutory Entities
✔ Address proof in the entity’s name (any one from the above list)
✔ Additional Documents:
- Authorized signatory list with specimen signatures (on letterhead)
- PAN card of the government body/entity (if available)
- ID proof of the authorized signatory (PAN/Driving License/Passport)
Note: Documents must be certified by the authorized signatory.
This checklist ensures a smooth and hassle-free process for obtaining your CIBIL Company Credit Report. Make sure all documents are attested and up-to-date before submission!
How is the CIBIL score calculated?
Repayment history: How you have paid credit in the past is 35% of your Cibil Credit Score. This is why EMI is remembering payment, and default on the repayment of credit can severely reduce your score. Credit and repayment period taken The type of credit you have received contributes to your CIBIL score, to be accurate in your credit score, 10%. The advantage of only one type of credit does not help in your score.
Avoiding the use of credit does not help completely. To make a positive 10% contribution, you must have a balance of credit. This means taking both safe and unsafe loans. The duration of repayment contributes another 15% to your CIBIL score. This is based on the time when you are using credit and whether you are paying on time or not.
Credit Bureau in India
A credit bureau collects and holds a wide range of credit-related information on individuals and businesses. It collects data such as the use of credit cards from various financial institutions, loans taken, overdraft facilities, etc., and produces credit reports and scores, which reflect the credibility and repayment history of a person or business. Additionally, information such as income tax records, timely payment of utility bills, and other financial behavior can also be included.
These bureaus collect this information from loan companies, data collection agencies, and other sources. The purpose of this data collection and analysis is to create a comprehensive profile of an individual’s or business’s credibility, including their repayment behavior, default history, and debt-to-income ratio.
Why is your credit score low?
If you have a low CIBIL score, there are possibilities that you may have, intentionally or unknowingly. To avoid any further dip in your credit score, check out these reasons and avoid using them while utilizing your existing or new credit.
1. Delayed/Non-payment of Loan EMIs or Credit Card Dues
- Your payment history is one of the key factors that affect your CIBIL score. If you have repeatedly delayed or missed your EMI/credit card payments in the past, your score will decrease significantly
- If your credit report displays DPD (Days Past Due) with numbers, it means you have defaulted on payments, that shall lead to a fall in your credit score
- Unpaid dues of small amounts for a longer duration lower your CIBIL score drastically
2. Simultaneously Applying for New Credit Applications
- Submitting multiple applications for new loans and credit cards with several lenders within a short period results in an increase in the number of hard enquiries that negatively impact your credit score
- AllAll of these hard inquiries get recorded on your CIBIL report and depict your credit-hungry behavior, which is potentially at a higher risk of default. As a result, your CIBIL score starts falling
- Outright rejection of your loan or credit card application also decreases your CIBIL score significantly.
3. Not checking your CIBIL Report for Errors
- Errors in your CIBIL report, such as incorrect personal or account details, duplicate accounts, incorrect loan balance, errors in outstanding balance, errors in reported active loans/credit, etc., may adversely affect your CIBIL score.
- There may be errors made by a bank or NBFC, or a case of fraudulent usage such as identity theft.
- Ideally, you should regularly check your credit report and raise a CIBIL dispute to rectify errors, if any, at the earliest.
4. High Credit Utilization Ratio (CUR)
- Credit Utilization Ratio (CUR) is the percentage of the total credit utilised to the total available credit limit across all credit cards.
- To avail of lending benefits and for quick loan approvals, it is ideal to maintain a CUR of 30% or less.
- If you have managed to pay all the loan EMIs and credit card dues in time, your CIBIL score may not be affected even with high CUR.
- Still, try maintaining your CUR as low as possible to further improve the chances of loan approval
5. Credit Mix
- If you have managed a variety of credit products, like credit cards, home loans, personal loans, etc., prudently in the past, it displays your ability to handle different kinds of credit responsibly
- If you don’t have a healthy mix of credit products (unsecured or secured loans), it may lower your CIBIL Score slightly, but the impact is unlikely to be significant
- A good mix of credit products in your credit report may help increase your credit score.
Tips to Improve Your CIBIL Score
Follow the simple tips given below to improve your CIBIL score:
- Pay Credit Card Dues and Loan EMIs on Time
- Paying your EMIs and credit card dues in full and on time has a positive impact on your CIBIL score, as it indicates responsible credit behavior
- Just keep doing this over time, and you will be able to improve your score and also maintain a high score
Check your Credit Report for Errors
- Monitor your credit report frequently for administrative errors and possible fraudulent usage.
- These errors, if reported using the CIBIL dispute resolution mechanism and rectified promptly, can help improve your CIBIL score instantly
Do Not Apply for New Credit in Short Duration
- Avoid applying for new credit unless you need it.
- Keeping the number of new applications in check will prevent multiple hard enquiries from appearing on your report and help you maintain a high score
Settle Your Debts at the Earliest
Avoid settling your debts and instead try and pay off outstanding debts in full. Consider settlement only as a last resort if you cannot close your credit account. This is because, even though a settlement will reduce your debt burden, it indicates an inability to handle your finances judiciously, which will negatively impact your CIBIL score
Do not overspend on the Sanctioned Credit Limit
Credit utilization ratio indicates the extent of your dependence on credit. It is recommended to maintain a low credit utilization ratio (usually 30% or lower of your total available credit limit). It hints at a lower dependence on credit and thus, a lower burden of repayments. This indicates responsible credit behavior and has a positive impact on your CIBIL score. Bureaus rarely penalize you for having a high CUR once in a while.
How to Check Your Rank in CIBIL?
The CIBIL Rank is derived from your Company Credit Report (CCR), which summarizes your CCR in the form of one number. It is provided on a scale of 10 to 1, where 1 is the best rank that can be achieved. The rank is now available for companies with current credit exposure of up to Rs. 50 crores.
To check your CIBIL rank (also known as CMR, or Company Credit Report), visit the official CIBIL website, complete the payment for your chosen plan, upload your KYC documents, and access your Company Credit Report and CIBIL Rank through your dashboard after successful verification.
Here’s a more detailed breakdown:
- Visit the CIBIL website: Go to the official CIBIL website: https://www.cibil.com/
- Choose a Plan: Select the appropriate plan for accessing your company credit report and CIBIL rank.
- Complete Payment: Pay for the chosen plan.
- Upload KYC Documents: Upload the necessary Know Your Customer details
- Verification and OTP: Once your KYC documents are successfully uploaded and scrutinized, you will receive an OTP to access your company credit report and CIBIL rank through your dashboard.
- Access Your CIBIL Rank: Once verified, you can access your CIBIL Rank and Company Credit Report through your dashboard.
How often are CIBIL reports updated?
The Credit Information Bureau India Limited, or CIBIL, is an Indian company that displays credit ratings. They collect the information sent to them via various lenders, banks, and credit companies. This data is compiled, and a score is given to each customer, which depicts their credit behavior.
Credit scores range from 300-900, and the higher your score, the more creditworthy you are. Credit companies send information every 30-45 days, after which it gets updated. So, in case there is a change in your credit behavior, it may not show up in the next update itself.
When Does a CIBIL Score Get Updated?
When Does CIBIL Score Get Updated? If you are thinking about getting a loan, your CIBIL score is very important. This score is a number that shows how well you manage your money. Once you take your first loan, your CIBIL score is updated each month or every 45 days. There are main situations where your CIBIL score might change.
If you notice a mistake in your score or have a complaint about it, you might see a change in your CIBIL score. Fixing this can take up to 90 days.
Understanding CIBIL Score vs. Credit Score
CIBIL creates the CIBIL report. This report shows your CIBIL score, loans, and payment history. It also includes your details like your name, address, PAN, and contact information. – When you apply for another loan or a credit card, the lender reports this to CIBIL, and it gets added to your report. Besides CIBIL, other credit bureaus generate their credit reports.
Does Checking Your CIBIL Credit Score Frequently Impact It?
Checking your credit score gets recorded in your report. There are soft inquiries and hard inquiries. Soft inquiries do not affect your score, but hard inquiries can lower it. Credit Score for NRIs NRIs can check their credit score by visiting credit bureau websites. They can receive one free CIBIL report and score annually. To monitor their credit history frequently, they can buy a plan on CIBIL’s website. NRIs need an Indian mobile number to access the report and score.
Why should an NRI have a credit score?
Many Non-Resident Indians (NRIs) maintain financial ties to India. Some want to start or expand businesses in India. Others may plan to return for work. A credit score is a valuable asset in these situations. A strong score helps access loans, credit cards, and housing in India more easily.
FAQs on CIBIL Score
1. How can I check my CIBIL score for free?
You can check your CIBIL score for free once a year on the official website: www.cibil.com. Simply sign up, verify your identity, and access your credit report. If you need to check it more often, you may need to pay for a subscription or use third-party financial apps that provide free CIBIL score checks.
2. Why did my CIBIL score drop suddenly?
Your CIBIL score can drop due to several reasons, including:
- Late or missed payments on loans or credit cards.
- High credit utilization (using more than 30-40% of your credit limit).
- Multiple loan or credit card applications in a short period.
- Errors or discrepancies in your credit report.
- Settling or defaulting on loans instead of clearing them in full.
If your score drops unexpectedly, it’s a good idea to check your credit report for any inaccuracies or unauthorized transactions.
3. Can I improve my CIBIL score quickly?
Yes, but improving your score takes time and consistent effort. Here are some effective ways to boost it:
A. Pay your credit card bills and EMIs on time—even a single missed payment can affect your score.
B. Keep your credit utilization below 30% of your total credit limit.
C. Avoid applying for multiple credit cards or loans in a short period.
D. Maintain a healthy mix of secured (home/car loan) and unsecured loans (credit cards/personal loans).
E. Regularly check your credit report for errors and dispute any incorrect information.
4. How long does it take to improve a low CIBIL score?
The time required to improve your score depends on the severity of the issues.
- Minor issues (such as high credit utilization or one missed payment) can take 3 to 6 months to recover.
- Major issues (such as loan defaults or multiple missed payments) may take 12+ months to improve.
- Building a good credit score from scratch (if you have no credit history) can take at least 6 months with responsible credit behavior.
5. Will closing a credit card affect my CIBIL score?
Yes, closing a credit card can negatively impact your score in two ways:
- It reduces your credit history length, which is a key factor in your score calculation.
- It increases your credit utilization ratio, as your total available credit limit decreases
If the card has a long positive history and low or no fees, it’s better to keep it open and use it occasionally rather than closing it.
6. Can I take a loan with a low CIBIL score?
Yes, but your options will be limited. A low score means
- Banks and NBFCs may reject your loan application or approve it at higher interest rates.
- You may need to provide collateral (secured loan) or a guarantor to improve approval chances.
- Some lenders offer bad credit loans, but they usually come with stricter terms and higher EMIs.
It’s better to improve your credit score before applying to get better loan offers.
7. Does having multiple credit cards affect my CIBIL score?
No, having multiple credit cards won’t harm your score as long as you use them wisely. They can help you if
✔ You pay all your bills on time.
✔ You keep credit utilization low on each card.
✔ You don’t apply for too many new cards at once.
However, if you max out multiple cards or miss payments, it will negatively impact your score.
