How to check CIBIL Score free of Cost

CIBIL Score or Credit Score

cibil score

What is CIBIL Score?

CIBIL Score is a 3-digit credit score of an individual that indicates his/her creditworthiness.

It is calculated using the credit history which is found in CIR (Credit Information Report).

A CIR does not contain details of your savings, investments, or fixed deposits.

CIBIL Score gives you the details of the payment history of all the loan types that an individual has taken from the credit institutions over a period of time.

Let’s understand with an example

My friend Ajay is in need of loan/credit, the loan which he is looking for can be any loans

For example secured loans such as home loan, car loan, or unsecured loans such as personal loan, credit card or any other form of a loan.

So he visits a bank and the bank, in turn, wants some assurance that on what basis he can return the money.

Now the bank goes to the CIBIL which is an organization that maintains the data or credit history of all the individuals and on this basis, it assigns a CIBIL Score.

Bank asks for the CIBIL Score of Ajay, so what is actually happening here?

The bank is checking the creditworthiness of an Ajay before offering a loan.

Here the banks get to know the payment history and the pattern of loan repayment of Ajay which is derived from the CIBIL Score.

The bank can also find out how risky customer you are to any bank so basically it’s an assessment whether the individual will pay back the loan or not.

CIBIL Score range is between 300 – 900 and the closer your score is to 900, the higher are the chances of your loan application getting approved.

All banks and financial institute share their credit data with the CIBIL and it becomes easy to track the loan and repayment history of an individual.

TransUnion CIBIL maintains the records of about 600 million individuals and 32 million businesses in INDIA.

Luckily Ajay had a very good CIBIL Score as he had made the payments on time and cleared all his loans and his loan got approved with less than a week!

Let’s understand CIBIL Score


The CIBIL Score is available freely on the CIBIL Website

The closer your score is to 900, the higher are the chances of your loan application getting approved.

It is not so difficult to maintain a very good CIBIL Score if you pay your EMIs on time on or before the due dates.

What are the major factors that affect my CIBIL Score?

  1. Repayment history – if the repayments are made on time or not
  2. High Credit Utilization – it means that the habit of taking more loans often, Lower the Utilization better is the Credit Score
  3. Multiple Enquires – if you inquire more or simultaneously for the requirement of loans so lesser the enquires better is the score. If you have recently been sanctioned multiple loans and credit cards, then lenders will view your application with caution because this behavior indicates your debt burden has increased, which will negatively impact your score.
  4. Credit MIX – if you have taken different types of loans such as Auto loan, personal loan, home loan, etc., The more the varieties of loan that you have taken better is the score
  • The advantages of a good CIBIL Score is that better Score (775 to 900) means loans with cheaper interest rates and faster approval
  • The disadvantages of a bad CIBIL Score is that Lower Score (300 – 775) means delayed approvals or rejection of loans
  • 750+ is a good CIBIL Score
  • NA – NA means No Credit Activity in the last couple of years
  • NH – NH means No Credit History that is either you are new to the credit system or you don’t have enough credit history

I think I have covered all the basics of CIBIL Score, to more know more about credit card and how it works check out this article Credit Card.


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