What is a CIBIL Score?
CIBIL full form can be expanded to Credit Information Bureau (India) Limited which is the credit agency authorized by Reserve Bank of India (RBI) which can calculate the credit score of an individual. CIBIL basically means a measure of your creditworthiness by providing you with a CIBIL Score which is a numerical summary used by financial institutions, be it for loan, advance or credit card application.
Your CIBIL score is a 3-digit number that appears on your credit report. The normal range is between 300 and 900, where 300 is the lowest and 900 is the highest. Generally a score between 700 and 749 is considered good. Having said that, anything over 750 is considered excellent and increases the chances of your loan being approved. The score itself is dynamic and varies based on your financial activity.
CIBIL Score is not limited to banks to understand you as a credit worthy applicant. Credit card companies, mortgage lenders, auto lenders, etc. use this as a snapshot of your creditworthiness before approving any credit request.