Your CIBIL score, often known as your credit score, is a crucial aspect in determining whether or not you will be approved for a loan. CIBIL scores are calculated using your credit history, which includes past credit purchases and payment trends. A high creditworthiness score implies good creditworthiness, whereas a low creditworthiness score suggests low creditworthiness. Low credit scores make you a riskier borrower, and lenders will be wary of approving your loan application.
TransUnion CIBIL, one of India's credit bureaus, assigns a credit score to people and businesses that varies from 300 to 900. The closer your credit score is near 900, the more likely you are to get approved for a loan. A score of 300 to 549 is considered bad, while a score of 550 to 700 is considered fair.
