How Does CIBIL Calculate Credit Score?

Credit Card
1

What method does CIBIL use to calculate credit score? Anyone care to share?

2

Your CIBIL score is a score that reflects your creditworthiness and how responsible you are in managing loans and credit cards. It is not just about on-time payments.

This is a mix of different factors, such as repayment track record, credit utilisation ratio, age of the oldest credit and even the types of credit you currently have. All of these together determine your CIBIL score, which falls between 300 and 900.

Here is how different factors affect your CIBIL score:

  • Payment History (35%) – Pay EMIs and card bills on or before the due date.
  • Credit Utilisation (30%) – Use only a small portion of your total limit.
  • Age of the Oldest Loan or Credit Card (15%) – A longer credit record is always better.
  • Credit Mix (10%) – Having both secured loans and credit cards helps.
  • Credit Inquiries (10%) – Too many applications in a short time can drag your score down.

I also make it a habit to check my credit report regularly with free tools. Even if you are careful, mistakes in reporting can affect your score, so it is best to resolve them early.