Frequently Asked Questions
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CIBIL Score is an important factor in the loan underwriting process. Lenders will check your CIBIL Score to understand your credit profile, behaviour patterns and repayment habits before they approve your loan
or credit card application. Discover how it’s calculated, what a good CIBIL Score looks like and what can be done to improve yours.
Your CIBIL Score is a three-digit numeric summary of your CIBIL Report and is a reflection of your credit profile and loan-worthiness, based on your credit history and past repayment behaviour. This score can range from 300 to 900. The higher the score, the more confident providers will be in your financial reliability, giving you a better chance of your loan being approved.
Your CIBIL Score is based on your credit history and repayment behaviour as reported by banks and other lenders to TransUnion CIBIL. It’s calculated based on previous loan payment behavior and outstanding amounts, outlined in the ‘Account’ and ‘Enquiry’ section of the CIBIL Report.
CIBIL Report is a detailed record of your credit payment history based on information provided by banks and financial institutions to help loan providers make informed lending decisions.
The report contains:
The CIBIL Score takes into account a large number of data points and macro-level credit trends to assess a consumer’s credit-worthiness and his/her likelihood of repaying a loan. This includes the duration of your credit history, long term trends of outstanding balances, transaction history on credit cards, the ratio of actual repayment amount to total amount due, and the number of new accounts opened and number of accounts closed.
However, the four main factors that can affect your score are:
Whether your score is lower than you’d like, or you just want to be in with the best chance of having your loan approved, there are a few ways to improve your score:
Improving your CIBIL Score can be a lengthy process. Continuous good credit habits and repayment behavior can help you build and maintain a better credit profile and a higher CIBIL Score.
Thinking of applying for an American Express Card now your CIBIL score is in check? Here’s how. Discover the difference between our Credit Cards and Charge Cards, or view all Cards here.