Understanding your CIBIL score before you apply for a loan

A CIBIL score is a three-digit number between 300 and 900 that summarises your credit history. Lenders use it to assess how likely you are to repay a loan on time.

Key factors that influence your score include repayment history, credit utilisation ratio, length of credit history, and the mix of secured versus unsecured credit you hold.

A score above 750 is generally considered good and can help you access lower interest rates. Paying bills on time, keeping credit utilisation below 30%, and avoiding multiple loan enquiries in a short span are simple ways to protect your score.

This article is for educational purposes only and does not constitute financial advice.