CRIF Highmark, Experian, Equifax and TransUnion CIBIL are four credit information agencies recognized by the Reserve Bank of India. These agencies collect information from banks, financial institutions and commercial lenders on credit users and use this information to ascertain their creditworthiness and repayment capacity. Based on their judgement, they assign each credit user a credit score, a number between 300 and 900 that is indicative of their performance as a credit user and the extent to which a lender can trust the credit user. 

The most popular of these four credit information agencies is TransUnion CIBIL and the credit score it assigns borrowers is known as the CIBIL score. The CIBIL score ranges between 300 and 900. Different CIBIL score ranges mean different things. Let us look at these different ranges and what they mean for a credit user. 

CIBIL Score Range Criteria : 300-900

CIBIL Score Range (750 to 900 ): Excellent 

This is the ideal CIBIL score for any type of loan. If your CIBIL score ranges from 750 to 900, you are an ideal credit user. You can be trusted with credit and debt and it is very unlikely that you will ever default on loan repayment. Availing of a loan will not only be easy for you, but you will also be able to get the terms and conditions of your choice on your loan. 

CIBIL Score Range (700 to 749) : Good 

If your CIBIL score falls between 700 and 749, yours is a good score. Some minor mistakes related to debt in the past are pulling your CIBIL score down but overall you have high credibility. Thus, you will get approved for a loan easily. However, your lender may not be very willing to negotiate with you on the loan terms and conditions. 

CIBIL Score Range (650 to 699): Fair

Such a CIBIL score indicates mediocre creditworthiness and repayment capacity. You have goofed up in the past and therefore, lenders may doubt you and your intent regarding debt. It is not that you will not get approved for a loan with such a CIBIL score, it is just that getting approved will become difficult and no lender will show any willingness to negotiate with you on the loan terms and conditions. You will have to accept the loan on the terms and conditions that your lender extends to you. 

Also have a look at how to Improve Cibil Score

CIBIL Score Range (600 to 649): Average

If your CIBIL score falls within this range, you will either have to add a co-borrower with excellent creditworthiness to enhance your home loan eligibility or a loan guarantor. You may also be compelled to buy loan insurance by your lender to minimize the risk involved for them and if you refuse to go along with what your lender says, getting approved for a loan will become impossible. 

CIBIL Score Range (Below 599): Poor 

With a poor CIBIL score, you will not get approved for a loan with any lender. Adding a co-borrower or a guarantor won’t work either. If you have a poor CIBIL score, the only thing you can do to get approved for a loan is work on your CIBIL score first and apply again when your score has improved. 

Loan approval as well as the terms and conditions you get on your loan depend very largely on your CIBIL score. Thus, every individual applying for a loan of any kind must first check their CIBIL score and apply for a loan only if their CIBIL score is at least good, if not excellent.