CIBIL Score: Full Form, Range, and What Counts as a Good Score

CIBIL full form and what the company actually does

CIBIL stands for Credit Information Bureau (India) Limited. It was set up in 2000 and is now owned by TransUnion, which is why you often see the brand written as TransUnion CIBIL. CIBIL collects credit data from every bank, NBFC, and card issuer in India and compiles it into a single credit report and score for every borrower.

Three other bureaus operate in India: Experian, Equifax, and CRIF High Mark. CIBIL is the most widely used by lenders, which is why most people refer to their credit score simply as their CIBIL score.

The CIBIL score range from 300 to 900

Every CIBIL score sits on a scale of 300 at the bottom to 900 at the top. The higher the number, the lower the perceived risk to the lender. A new borrower with no credit history usually starts with a score of NA or NH, which simply means there is not enough data to score them yet.

• 300 to 549: poor. Almost every application will be rejected.
• 550 to 649: fair. Approval is possible but at high interest rates.
• 650 to 749: good. Most cards and loans will be approved.
• 750 to 900: excellent. Best rates, highest limits, fastest approvals.

What counts as a good CIBIL score in India

750 is the unofficial industry benchmark. Cross that line and you unlock pre approved offers, lifetime free cards, and home loans at the lowest published rate. Stay below it and you will pay a credit premium on everything from a personal loan to a two wheeler EMI.

How your CIBIL score is calculated

CIBIL never publishes the exact formula but the four weighted factors are well known.

• Payment history (around 35 percent): every EMI and card bill paid on time.
• Credit utilization (around 30 percent): how much of your card limit you actually use.
• Credit age and history length (around 15 percent): older accounts help.
• Credit mix and new inquiries (around 20 percent): a healthy blend of secured and unsecured credit.