CIBIL, the first Credit Bureau in India, generates credit reports for all individuals who have been reported by lending institutions. The CIBIL score is computed in the range of 300-900, with 300 being lowest and 900 being highest. While the score is an outcome of various factors, it is highly important to have CIBIL disputes resolved which can be on account of a non payment of dues or an error on report.
Following is the broad demarcation of CIBIL score that is taken as good, bad of ugly by the banks and lenders.
> 750 : Good
650 – 749 : Average
< 600 : Bad
As per CIBIL, over 79% of loans are disbursed for people who have a score of greater than 750. This means that the chance of getting a loan with a score less than 750 is very low.
Hence, an ideal [recommended] credit score would be 750 and above; with this score, one can avoid being on the CIBIL defaulters list.
CIBIL as a bureau does not set any standard or benchmarks for credit score. Different lending institutions may have different score cut off for similar products. Also, apart from Credit Scores, there are several other criterion that banks and underwriters follow for approving loans. Suppose you have a 'good score' on your report. Despite that, your loan application could possible get rejected – this can be due to reasons besides credit points. Hence, while it is important to be watchful on your credit 'scores', it is equally important to be watchful about all your trade lines, credit and financial activities as well.
It is highly recommended, that before planning to apply for any loans one should check out his credit scores.
So technically, a score of 750 & above is considered a healthy, ideal & worthy credit score for a loan prospect.