CIBIL score calculation: How is CIBIL score calculated? (2024)

FAQs

CIBIL score calculation: How is CIBIL score calculated? ›

Payment history (35%): The most crucial factor, reflecting your ability to make payments on time. Credit utilisation (30%): The percentage of your available credit limit that you are using. Length of credit history (15%): A longer credit history with responsible management generally leads to a higher score.

Payment history (35%): The most crucial factor, reflecting your ability to make payments on time. Credit utilisation (30%): The percentage of your available credit limit that you are using. Length of credit history (15%): A longer credit history with responsible management generally leads to a higher score.

This is based on the amount of credit that has been sanctioned to you and how much of this amount you have used. Using too much credit in comparison to your income or reaching your credit card's limit each month, for example, doesn't reflect positively on your CIBIL credit score.

What's in my FICO^® Scores? FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).

TransUnion CIBIL is among the oldest and most reputable Credit Information Companies in India. Nearly all leading organisations are members of the bureau.

Frequency of credit score updates

This information includes your credit card usage, loan repayments, and any outstanding debts. The credit bureaus process this data to compute your updated credit score, keeping it current and relevant. Your CIBIL Score is updated every 30 to 45 days.

If you check your credit score yourself, it is considered a soft inquiry and will not harm your CIBIL score. Therefore, you can check your CIBIL score as often as you like. In fact, it is a good idea to check your credit score regularly.

The credit score calculated by CIBIL is known as the CIBIL score. So, the only difference between CIBIL and credit score is that credit score can be provided by any of the 4 credit bureaus in India. But only CIBIL provides CIBIL score. A credit score from any of the 4 credit bureaus is equally valid.

Your CIBIL score, calculated based on your credit behavior as reflected in the 'Accounts' and 'Enquiries' section of your CIR, ranges between 300-900. A score above 700 is generally considered good. Monthly or annual income details as reported by the Members (Banks and Financial institutions).

How does CIBIL get data? ›

Your CIBIL Report is a record of your credit payment history compiled from information received from banks and financial institutions. The purpose is to help loan providers make informed decisions basis your credit history, quickly and objectively.

You can't arrive at precisely the same score as the credit-scoring companies or lenders because they use proprietary formulas to determine your score. However, you can calculate some of the factors that contribute to your score, such as your credit utilization ratio and the length of time you've had credit.

A credit score is a three-digit number that measures your financial health and how well you manage credit and debt. FICO scores are a specific type of score that lenders can use when making borrowing decisions. The FICO credit scoring system is the most widely used credit score.

CIBIL gets your credit information from banks, non-bank financial companies, and other financial institutions. This information includes your existing loan details, credit card details, and more. Based on this information, CIBIL gives you a credit score and maintains a Credit Information Report (CIR).

A credit score of 700 and above is considered a good credit score. Credit scores of 750+ are considered excellent. Individuals with high credit scores are eligible for all kinds of loans and credit cards. Borrowers with a good score can also get better interest rates.

Higher the score, the better the chances of loan approval, and vice versa. And a credit score of 800 means you are an extremely reliable borrower who is more than likely to repay the debt. As a result, lenders are more likely to extend your loans or line of credit.