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What is CIBIL Credit Score

CIBIL stands for Credit Information Bureau India Ltd. It is the agency in India that provides credit reports and scored for individuals and businesses. CIBIL is like any credit bureau in different countries and shares credit reports, called credit information reports (CIR) for individuals. These credit reports reflect the credit worthiness of the individuals and help the banks make decisions on loan applications.


CIBIL was started in the year 2000 as the first Indian credit agency. India did not have a credit rating agency before 1999 and that was preventing the expansion of credit in the economy. With CIBIL starting operations as a credit agency for India provided the opportunity for Banks to reduce their Non-performing assets and for customers to have more customised loan offering based on their credit rating.

CIBIL has two technical partners TransUnion International and Dun and Bradstreet, both of which are leading global credit agencies. TransUnion is the largest shareholder in the company, with 55% ownership of the company, ICICI Bank and SBI, each own 10% of the company; IOB, BOI, UTI HSBC, BOB own 5% each.

Why are CIBIL reports important?

Credit reports, in this case the CIBIL reports, help the financial institutions and banks understand the credit history of an individual and predict his credit worthiness by primarily going through the borrowing history and how the person has replayed his previous loans.

However they not only help the banks but also help you in the following ways:

  • Show you a single view report with all your credit history.
  • CIBIL reports form the objective basis of giving loans and reduce the subjectivity associated with approving loans.
  • Helps you stay clear of debt traps by preventing future loans if you have a lot of debt
  • This report helps you learn and follow a good financial discipline.
  • A higher score will differentiate you from other people and will help you get better interest rates from the banks.

Difference between CIBIL reports and CIBIL scores

The CIBIL credit report is a detailed report that lists all your previous credit transactions, including both the borrowing and repayment history. The CIBIL score on the other hand is the statistical score that is generated by the credit agency after analysing the details in your report. This score signifies your credit worthiness in a nutshell to the creditors and is between the ranges of 300 to 900. A high credit score comes with a lot of advantages as that signals to the creditors that you are a great customer. Therefore it is in your benefit to ensure that you have and retain a good credit score.

Components of you CIBIL credit report

The CIBIL credit report is known as the credit information report ( CIR) and contains the details of the credit history of the individuals and the credit rating provided by CIBIL know as as the CIBIL Score. Most of the credit institutions such as banks will go through this report and score prior to processing any loan or credit card application.

The CIBIL credit report ( CIR) has the following details in it :

  • All current and previous loans

    This shows all the loans you have taken in the past and the ones that are still to be repaid. This section is used by the banks to understand how much money you owe and do you have the capacity to service more debt by paying an additional EMI.

  • History of your payments for loans taken

    This part of the report shows your repayment history and considers both your loan and credit cards payments. It shares whether you made the payments on time or not, if not how delayed were you. The term used to track delayed payment is days past due (DPD) and reflects the number of days late you made your payment. Any 30+ days per due on your report will reflect poorly on you so avoid making late payments.

  • Current Credit Outstanding

    This section reflects all the current loans yet to be paid. This helps the creditor understand what you owe currently and do you have the potential to take any new credit.

  • Recent Enquiries

    When ever you apply for a loan with a bank, the bank enquires about your credit worthiness with CIBIL . This is recorded in your credit report as an enquiry. A large number of recent enquiries is viewed negatively by lenders as they feel that you are in a desperate need of money and negatively affects your chances for approval. Therefore be sure before you apply for any loan or credit card with a bank and do not apply to all the banks.

  • New credit taken

    In this section, you can see recent loans or credit cards that you have got. This tells the lenders if you have been accumulating credit recently and the banks might view a lot of recent credit approvals negatively.