What is a CIBIL Score Based on and How You Can Calculate It
Your CIBIL score is an important metric that dictates your eligibility for loans, especially unsecured offerings. Simply put, a high score can help you secure financing at a low rate of interest whereas a low CIBIL score may be the cause for an application rejection. Hence, it is of great importance that you know your CIBIL score as you apply for a loan. To get this information, you can use a CIBIL score calculator; however, it is best that you obtain your CIBIL score from TransUnion CIBIL itself.
To know how to do so and the factors that go into CIBIL score calculations, read on.
What is a CIBIL score?
Your CIBIL score is a 3-digit number ranging from 300 to 900, assigned to you by TransUnion CIBIL, that serves as an indicator of your creditworthiness and repayment record. Your CIBIL score is calculated based on factors such as your current and past performance and the types of loans you have availed. Scores above 750 are considered ideal and you can leverage this to obtain financing on favourable terms. Hence, it is important that you not only look for a CIBIL score calculator online but also take steps to improve your CIBIL score before you apply for financing.
To improve your score, consider in detail the factors that impact CIBIL score calculations.
What are the factors considered in a CIBIL score calculation?
- Repayment history: Around 30% of your score goes into evaluating your past performance and your ability to repay debt
- Credit type and tenors: Around 25% of your score is dedicated to assessing whether or not you’ve dealt with a mix of unsecured and secured credit and the timeframe over which you have paid EMIs
- Total credit availed: Around 25% of your score is set aside to evaluate credit exposure
- Other factors: Around 20% of your score is dedicated towards factors such as current credit behaviour, hard inquiries, and credit utilisation
How to calculate your CIBIL score online?
As mentioned earlier, the best way to obtain your CIBIL score is via the online provision made available by TransUnion CIBIL. Outlined below is the procedure you can follow to check your CIBIL score online. You can do so for free by:
- Visiting https://www.cibil.com/freecibilscore
- Creating an account
- Verifying your identity
- Using your PAN and an OTP to get access to your score through your dashboard
Alternatively, you can also sign up for a subscription plan to get periodic access to your CIBIL score for a particular duration.
What does your CIBIL score mean?
Now that you know how to calculate a credit score, or rather, how to obtain the calculated score from CIBIL, learn what the range your score falls under indicates.
- 0 or NH indicates a lack of credit history
- -1 or NA indicates a credit history of under 6 months
- 1 to 5 measures risk for new borrowers, with 1 being the poorest score
- 300 to 550 is a bad CIBIL score range
- 551 to 649 is a poor CIBIL score range
- 650 to 699 is an average CIBIL score range
- 700 to 749 is a good CIBIL score range
- 750 to 900 is an excellent CIBIL score range
In a nutshell, the ideal CIBIL score for a loan is 750 and above. To boost your score, you should remember the 4 factors that impact CIBIL score calculations and adopt measures such as paying EMIs and credit card bills on time, keeping your credit utilisation ratio in check, and rectifying any mistakes you find in your CIBIL report.
Once you have a high score you can get easy access to offerings such as the Bajaj Finserv Personal Loan. Here you get access to a loan amount of up to Rs.25 lakh on simple eligibility terms and benefit from features such as 5-minute approval, 24-hour disbursal, and a flexible 60-month tenor. You can also avail the Flexi Loan facility to borrow from your sanction in parts, any number of times, without multiple applications, and restrict your interest payments to the amount withdrawn only.
So, make use of the CIBIL score calculator online, or simply view your CIBIL score via the official website to see where you stand financially. Then, check your pre-approved Personal Loan offer from Bajaj Finserv. Make the most of your CIBIL score and enjoy instant, hassle-free financing on customised terms.