CIBIL Score is a very important financial metric that reflects your creditworthiness. It is expressed in three digits and banks use it to assess your credit history and risk profile. Regular checking of your CIBIL score can help you maintain a healthy credit profile and make better financial decisions. Anyone’s CIBIL score is measured between 300 to 900 points. Banks decide to grant loans on this basis. Let us know what a CIBIL score of which range indicates.
CIBIL score ranges and their meaning
The range in which your CIBIL score falls directly affects your financial habits and future loans. It is important to understand this:-
300-680:- The lowest and riskiest range
If your CIBIL score is between 300 and 680, it is considered the lowest and riskiest range. A score in this range means that you have a history of delays in paying your credit card bill or loan monthly installment. Individuals in this range are at a very high risk of becoming defaulters, making it difficult for banks to trust them.
681-730:- Struggling, but with room for improvement
This CIBIL score range indicates a struggle on your part to meet your outstanding payment deadlines. According to Bajaj Finance, although it is not as severe as the lowest range, it still indicates a challenge in timely repayment. Individuals with this score may face some difficulties in getting a loan or credit card.
731-770:- Good credit behavior, but challenges remain
If your CIBIL score is in the range of 731 to 770, it indicates good credit behavior. This increases the chances of credit card or loan approval. However, it will not be easy for you to get the cheapest loan or other interest rates on this score. You will still face some challenges and may not get a loan on the best terms.
771-790:- Very good, low risk score
If your CIBIL score is more than 771, it is considered very good, which is an indicator of a consistent and timely payment history. In this range, your risk of default is the lowest. Banks give priority to such individuals and offer financial products on better terms.
791-900:- Excellent, Best Interest Rates
Most importantly, if the CIBIL score is above 791, it is considered excellent. Having a CIBIL or credit score in this range can help you get loans or better credit cards at lower interest rates. Banks easily approve loan applications of individuals with such high credit scores. However, the final decision depends on the bank itself.