CIBIL score can be classified into the following categories

  • -1: This indicates that the borrower has no credit history with any banks or financials in the country
  • 300 – 600: Those borrowers who come in this bracket are considered to be risky by the lenders and won’t be granted any loan.
  • 601 – 750: If you fall in this bracket, you might get a loan, but then it is up to the lenders discretion. In this case the lender will also look into your overall financial health as well before deciding whether to give you a loan or not.
  • Credit Utilization: When it comes to credit utilization you need to remember two things, one is your credit limit and the other is the amount you are utilizing. Always remember not to use 100% of your credit limit, it will lower your score. It is advisable to use only 30% – 40% of your total credit.
  • Closing your Credit Cards: It is a general misconception that if you close your credit card, your credit score will improve. Think of this; if you had a credit card for a long time and had been paying the dues on time, it will have a positive impact on your credit score. So don’t be in a hurry to close your credit card.