What is a CIBIL score and why lenders start there
A three-digit number between 300 and 900 that summarises how reliably you have repaid credit. It is the first filter almost every lender applies.
4 min read
What you need to know
TransUnion CIBIL, along with Experian, Equifax and CRIF High Mark, maintains a record of every loan and credit card you hold in India. Your score condenses that record into a single number: 300 is the floor, 900 the ceiling, and anything above 750 is treated as strong.
Lenders use the score to price risk. A 780 applicant and a 690 applicant applying for the same personal loan can be quoted rates two to four percentage points apart, and on a long-tenure home loan that gap costs lakhs over the life of the loan.
Continue your research
Use this guide alongside our product details and eligibility criteria before choosing a lender.
Key points and practical checks
- Payment history carries roughly 35% of the weight
- Credit utilisation on cards and overdrafts, about 30%
- Length of credit history, about 15%
- Credit mix and recent hard enquiries make up the rest
Frequently asked questions
What is the main takeaway from “What is a CIBIL score and why lenders start there”?
A three-digit number between 300 and 900 that summarises how reliably you have repaid credit. It is the first filter almost every lender applies.
What should I check before acting on this credit score guide?
Start with these checks: Payment history carries roughly 35% of the weight; Credit utilisation on cards and overdrafts, about 30%; Length of credit history, about 15%. Your final eligibility, pricing and approval still depend on the lender’s assessment.
Can the information in this guide guarantee loan approval?
No. It is general educational information. A bank or NBFC makes the final decision after checking your credit profile, repayment capacity, documents and the applicable product policy.
How can iFINTRUST help after I read this guide?
An iFINTRUST advisor can review your requirement, explain the documents normally requested and help you compare suitable lending options before you apply.