What is TransUnion CIBIL Score and How to Check Online?

While looking for a loan, you will often come across the TransUnion CIBIL score. If you are wondering what a CIBIL or credit score is, it is a three-digit number that reflects your creditworthiness based on your past credit behaviour. Lenders check this score to evaluate your ability to manage and repay loans or credit cards responsibly.

Here’s what your credit score indicates:

• A higher score means strong credit health and better loan approval chances.
• A lower score suggests repayment delays or poor credit management.

Read on to learn more about this score and how to check TransUnion CIBIL score for free.

What is TransUnion CIBIL Score?

TransUnion CIBIL is one of India’s most trusted major credit bureaus, providing detailed credit reports and scores for both individuals and companies. All banks, financial institutions, NBFCs, housing finance companies, and credit card providers report monthly updates about their customers’ credit activities. The bureau currently maintains information on over 600 million people and 32 million companies.

Using this data, the bureau compiles a TransUnion CIBIL report that includes personal, employment, contact, and credit account details. This report also lists loan EMIs, payment history, credit utilisation, and credit enquiries. Based on this information, the bureau assigns a CIBIL score ranging from 300 to 900. A good CIBIL score above 700 significantly increases the chances of loan or credit card approvals, often with lower interest rates and the possibility of a higher credit limit.

Importance of TransUnion CIBIL Score

Whenever you apply for a personal loan, credit card, or other loans or credit, lenders check your TransUnion CIBIL score to evaluate your creditworthiness. A high credit score demonstrates responsible financial behaviour, helping lenders decide whether to approve your loan or credit card. Maintaining a good CIBIL score is essential for securing higher credit opportunities, better terms, and smoother approval processes.

Most lending institutions consider a score above 750 ideal for approving loans. That is why checking the CIBIL score is important before filling out a loan application form. If your score is low, you must take steps to improve it to increase your chances of approval with favourable rates, terms and conditions.

How is the TransUnion CIBIL Score Calculated?

Your TransUnion credit score is calculated based on several key factors:

1. Credit Mix (25% weightage)

Maintain a balanced mix of different types of credit products in your credit portfolio. A healthy mix of secured and unsecured loans indicates that you can manage all credit types efficiently.

2. Credit Utilisation Ratio (25% weightage)

CUR, or credit utilisation ratio, is the percentage of your credit limit you consume on average. You should try to maintain a CUR of less than 30%. The lower the CUR, the higher the credit score.

3. Credit History (30% weightage)

The credit bureau evaluates your repayment history by checking data from your past financial institutions. Missed credit repayments drastically affect your CIBIL score and reduce future loan eligibility.

4. New Credit Enquiries (10% weightage)

When you apply for credit, the finance company pulls a hard inquiry on your CIBIL report. Multiple hard enquiries within a short period can significantly affect your credit score and reduce your loan or credit card eligibility.

5. Average Age of Loan Account (10% weightage)

The credit bureau checks the average age of your loan accounts when assessing your credit report. That is why retaining old accounts and cards is advisable, even if they have been inactive for a long time.

What is a TransUnion CIBIL Report and How to Read It?

A TransUnion CIBIL report is a record of your credit activities, helping lenders evaluate your creditworthiness. The report is divided into four main sections:

• Personal Information: Includes identity, employment, and contact details.
• Account Information: Lists all loans or credit cards, balances, loan EMIs, and payment history.
• Enquiries: Shows who has checked your credit score; hard enquiries may slightly affect it.
• CIBIL Score: A three-digit number summarising your credit score and credit health.

Checking your CIBIL score online for free helps you evaluate your credit and plan future loan or credit card applications confidently.

Reasons Behind Low TransUnion CIBIL Score

Low CIBIL scores can affect your loan or credit card approvals. Common reasons include:

• Late Payments: Missed loan EMIs or credit card bills reduce your credit score.
• High Credit Utilisation: Exceeding your credit limit signals financial stress and can lower your CIBIL score.
• Multiple Credit Inquiries: Frequent checking of your credit suggests a higher borrowing risk.
• Outstanding Debts: High balances on loans or credit cards can negatively impact your credit score.
• Errors in Credit Report: Mistakes in your TransUnion CIBIL report can harm your creditworthiness.
• Lack of Credit History: Limited credit activities provide insufficient data for scoring.
• Defaulted Loans: Defaults significantly impact your credit score and reduce the chances of loan or credit card approvals.

Understanding these factors helps you take steps to improve your TransUnion CIBIL score over time.

Tips to Improve TransUnion CIBIL Score

A good CIBIL score is crucial, as it influences lenders when approving Personal Loans, credit cards, or loans or credit with lower interest rates.

1. Timely Payment of Debt: Always pay loan EMIs and credit card bills on time. This shows financial discipline and improves your credit score over time.
2. Control Spending: Minimising unnecessary expenses keeps your finances balanced, helping maintain a good CIBIL score and repay loans or credit on time.
3. Use Credit Cards Responsibly: Borrow less than your credit limit to reduce credit utilisation, which improves your credit score.
4. Monitor Accounts: Ensure all loan EMIs and credit card bills are received on time. This helps ensure timely payments, maintain a good credit score, and build an excellent credit history.

How to Check TransUnion CIBIL Score for Free?

To check your CIBIL score online for free:

1. Visit the official TransUnion CIBIL website.
2. Navigate to the ‘Personal Section’ and click ‘Get Free CIBIL Score & Report’.
3. Fill in personal and government-approved ID details.
4. Your online TransUnion CIBIL score will appear instantly.

Regularly checking your CIBIL score helps you monitor credit activities and track the status of your loans or credit cards. A good score enables you to get lower interest rates and higher credit limits on loans and credit cards.

How to Dispute Errors on Your CIBIL TransUnion Report?

Errors on your TransUnion CIBIL report can affect your credit score and loan or credit card approvals. Steps to dispute:

• Regularly check your CIBIL report for mistakes in personal info, credit accounts, or loan EMIs.
• Collect supporting documents such as bank statements and ID proofs.
• Submit a dispute via the TransUnion CIBIL website or customer support.
• Clearly explain the error and attach evidence.
• Track the dispute until corrections reflect on your CIBIL score.

Correcting errors in your CIBIL report helps lenders decide whether to approve your loan or credit card.

Conclusion

A high TransUnion CIBIL score reassures lenders of your ability to repay. It affects approvals of your Personal Loans and credit cards. It also affects your interest rates and loan EMIs. Regularly reviewing credit reports and scores, paying loan EMIs on time, and controlling credit utilisation ensure excellent credit scores and lower interest rates. By checking your CIBIL score online, you can plan future loan or credit card applications confidently.

Frequently Asked Questions

How do I find my total credit score?

To find your total credit score, visit the official TransUnion CIBIL website and check your CIBIL score online using your basic details.

How can I download the CIBIL report in a free PDF format?

Follow the steps on the TransUnion CIBIL website to get your CIBIL score and report for free.

How can I get a CIBIL score of 750?

Pay all loan EMIs and credit card bills on time, diversify loans or credit types, and manage expenses.

Is a 744 TransUnion credit score good?

Yes, a good CIBIL score above 700 attracts lenders, often providing lower interest rates and higher credit limits.