CIBIL Score: How is the CIBIL score determined? What is the best CIBIL score? Learn everything here...

In today's times, CIBIL scores have become increasingly important. The importance of a CIBIL score becomes clear when you apply for a loan or borrow money. Today, we'll learn how the CIBIL score is calculated.

How is the score calculated?
According to Cibil.com, the CIBIL score depends on several factors.

Are you paying your credit bills and EMIs (if you already have one) on time?

How dependent are you on your credit card, and how are you using it?

How long have you been using a credit card?

Do you use different types of credit cards?

How often do you apply for a new credit card?

Which CIBIL score is the best?

NA/NH - If you see NA or NH when checking your CIBIL score, it means your CIBIL score hasn't been established because you haven't used a loan or credit card yet.

300 to 599 - A CIBIL score between 300 and 599 is considered poor. This indicates that you tend to delay payments. It's difficult to get a loan with this CIBIL score.

550-649 - This is also considered low. Some financial institutions may offer you a loan in this range.

650-749 - A CIBIL score in this range is considered fair. You can get a secured loan in this range. This also depends on the lender's policy.

750-900 - This is the best CIBIL score range. Everyone will offer you a loan in this range. Additionally, some banks may offer you a lower interest rate.

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