Understanding CIBIL Score Ranges and What They Mean for Your Creditworthiness

Ramesh Kumar
Sep 4, 2023
3 min read

The Reserve Bank of India recognizes four credit information bureaus: CRIF Highmark, Experian, Equifax and TransUnion CIBIL. These credit information bureaus collect information about credit users and gauge the risk involved for a lender in lending money to a borrower. Based on their findings, these credit information bureaus assign a credit score to each borrower. TransUnion CIBIL is the most popular credit information bureau in India and the credit score it assigns borrowers is known as the CIBIL score. The CIBIL score ranges from 300 to 900 and is reflective of a person's creditworthiness and repayment capacity. Let us now look at what different CIBIL Score ranges mean.

1. 750 to 900 (Excellent)

If your CIBIL score is between 750 and 900, you have an excellent CIBIL score. Such a CIBIL score reflects high repayment capacity and creditworthiness. Borrowers who have such a CIBIL score get approved for a loan quickly and have high negotiating power. Such borrowers can negotiate for low interest rates and higher loan sanctions as lenders see almost zero risk in lending money to such borrowers.

2. 700 to 749 (Good)

If your CIBIL score ranges from 700 to 749, you have a good CIBIL score. You are someone who has almost always paid loan EMIs and credit card bills on time. However, there have been some cases of missed EMI payments and credit card bill due dates. Therefore, lenders see some risk in lending money to you. Therefore, when such borrowers apply for a loan, lenders approve the loan application quickly but do not always sanction the loan at the most beneficial loan terms. For instance, borrowers who have such a credit score are often offered a slightly high rate of interest. Similarly, sometimes, lenders sanction a lower loan amount than one had applied for or one is eligible for to reduce the risk involved for them in doing business with the borrower.

3. 650 to 699 (Average)

If your CIBIL score ranges from 650 to 699, you cannot be entirely trusted with timely repayment of loan money. This may be because you have missed EMI payments and credit card bill due dates at times. This may also be because you have a high credit utilization ratio or are excessively dependent on credit. In any case, lenders will see risk in lending you money and therefore, loan approval won't come easy for you. If your CIBIL score belongs to this range, to be able to avail of a loan on terms and conditions that work best for you, you will either have to add a guarantor or buy insurance.

4. 500 to 649 (Poor)

If your CIBIL score ranges from 500 to 649, you have a poor CIBIL score. Availing of a loan with such a CIBIL score will be very difficult. You will either have to add someone with an excellent credit score or buy insurance to convince your lender to give you a loan and you may not get a loan even after doing so.

5. Below 500 (Very Poor)

If your CIBIL score is below 500, no lender will lend you money, even if you buy insurance or even if you add a guarantor with excellent creditworthiness. If you wish to avail yourself of a loan, your only option would be to improve your CIBIL score and then apply for a loan. Please note that when your CIBIL score is very poor, bettering your CIBIL score so that it makes you eligible for a loan on beneficial terms and conditions can easily take a few months or even years. So, be patient.