CIBIL Score 101 — What Indian Banks Actually Look At

750 is the magic number. Here's what builds it, what destroys it, and what doesn't matter at all.

Your CIBIL score is a 3-digit number between 300 and 900 that decides whether banks trust you with their money. Above 750: you get approved for most cards and loans with good terms. 700-750: approval likely but with higher interest rates. Below 700: rejections become common. Below 650: you're essentially locked out of mainstream credit.

What Goes Into Your Score

Payment history (35% of your score): Did you pay on time? Every time? Even one missed payment can drop your score by 50-100 points. This is the single most important factor. If you do nothing else, pay your credit card bill in full, on time, every month.

Credit utilization (30%): How much of your available credit limit are you using? Using ₹90,000 of a ₹1 lakh limit (90% utilization) screams financial stress to the algorithm. Keeping utilization under 30% is ideal. Under 10% is excellent. This is why getting a credit limit increase — even if you don't need it — helps your score.

Credit history length (15%): How long have your accounts been open? A 5-year-old card helps your score more than a 6-month-old card. This is why closing old cards is usually a bad idea — you're shortening your average credit history.

Credit mix (10%): Having both revolving credit (credit cards) and installment credit (loans) is better than just one type. A credit card + a small personal loan or car loan shows you can manage different credit types.

New credit inquiries (10%): Every time you apply for a card or loan, the bank checks your CIBIL report. Multiple inquiries in a short period suggest you're desperately seeking credit. Space applications at least 3-6 months apart.

What Doesn't Affect Your Score

Your salary. Your savings account balance. Your investments. Checking your own CIBIL score (this is a 'soft inquiry' and doesn't affect it). Debit card usage. UPI transactions. None of these show up in your credit report.

How to Go From 650 to 750 in 6-12 Months

Set up autopay for full balance on all cards. Request credit limit increases to bring utilization under 30%. Stop applying for new cards until your score recovers. If you have a missed payment, the negative impact reduces over time — 12 months of clean payments after a miss shows recovery.

The Free Score Check

Check your CIBIL score for free through CIBIL's official website (once per year), Paytm, CRED, or your bank's app. Don't pay for credit monitoring services — the free options are sufficient for most people. Check every 3-4 months to track your progress and catch errors early.