A CIBIL score ranges between 300 and 900, with 900 being the highest. Individuals with a CIBIL score of 750 or higher are generally regarded as responsible borrowers. Here are the various CIBIL score ranges.
If you have no credit history, your CIBIL score will be NA/NH, which means “not applicable” or “no history”. You will have no credit history if you have never used a credit card or taken out a loan. You should think about getting credit because it will help you build a credit history and gain access to credit products.
350 – 549: A CIBIL score in this range is considered to be poor. It indicates that you have been late in paying credit card bills or loan EMIs. With a CIBIL score in this range, you will find it difficult to obtain a loan or a credit card because you are at a high risk of becoming a defaulter.
A CIBIL score between 550 and 649 is considered fair. However, because this is still not the best CIBIL score range, only a few lenders would consider giving you credit. It implies that you have been struggling to pay your bills on time. The loan’s interest rate may also be higher.
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How to Improve It?
It is critical to have a high CIBIL score because it helps banks decide whether or not to extend you credit. A high CIBIL score increases your chances of getting credit. Here are five simple and effective methods for increasing your CIBIL score.
- Check and monitor your CIBIL Score: Knowing your CIBIL Score on a regular basis will give you an idea of your credit status. You can keep track of your CIBIL score by signing up for a subscription-based credit score. You can also track your score by using a CIBIL report from one of India’s leading credit bureaus. Another reason to check your CIBIL score is to see if your credit account has any errors or false records.
- Verify your credit report for errors: In addition to keeping an eye on your Credit Scores, it is advisable that you check your credit report. It is recommended to regularly evaluate your credit report so that you may make any necessary corrections.
- Limit your Credit Usage: It’s critical to exercise restraint when using your credit card. Verify that you are not using up all of your credit. Spending more than 50% of your credit card limit is not recommended until your CIBIL score hits 750.