TransUnion CIBIL is a premier credit rating agency among the top four agencies in India. CIBIL has affiliations with almost every other bank in India, estimating the creditworthiness of millions of enterprises and individuals. A great CIBIL score denotes that a person follows great financial discipline and integrity. Every time an individual applies for a credit card or a loan, their recent rating is reviewed. Usually, any score above the value of 700 is considered good enough although some banks have raised the bar while others don’t.
| CIBIL Score | Meaning |
|---|---|
| 850 – 900 | Indicates that one has never defaulted on their payments even once and is an excellent score. |
| 750 – 850 | 80 % of loans are approved for people who have a score above 750. This gives them the advantage to bargain for a better rate on credit cards and personal loans. |
| 700 – 750 | This indicates that the person is good to go for secured loans. However, for an unsecured loan, the bank may impose a higher rate or investigate further. |
| 500 – 700 | This indicates that a person has defaulted on their payments a few times. Personal loans would be hard to obtain, and a private financier may levy a massive interest. |
| 300 – 500 | This is considered an inferior score and indicates too many discrepancies in loan repayments to ignore. Unless the person works on improving their score, it would be close to impossible to obtain any credit from any bank in the country. |