A Credit Score is a three digit number that denotes an individual’s creditworthiness. In other words, the credit score is a numerical measure of an individual’s Credit Character. In India, the credit score is colloquially referred to as the “CIBIL score”. The term “CIBIL score” has almost become synonymous with credit scores. Even so, it must be noted that credit scores from any of the bureaus are a valid expression of an individual’s Credit Character.
The credit score is the outcome of a complex process based on statistical modules. These modules, developed and refined over decades, process the thousands of data points which are present in the credit file of an individual.
Credit Scores in India ranges from 300 to 900 irrespective of the credit bureau from which these are generated. A score of 750 and above is considered to be good score. As per the CIBIL website, about 79% of loans or credit cards being disbursed are to borrowers having a score above 750.
Only those applications which meet the minimum credit criteria get assessed by an underwriter. Different lending institutions could have different benchmarks for the same product and the same institutions could have different minimum criteria for different products. Some lending institutions use the credit score in conjunction with the credit report. Credit applications which do not meet the minimum criteria could get rejected without further decision-making steps (especially in the case of an unsecured product).
Do note that credit scores are only one of the many paramaeters that lenders check (demographics, income, subjective factors being others). It is possible that your loans may get rejected even if you have a good credit score.