Must know on How to Read Credit Report Scores

30-Sep-2016 written by : FSI-Team

As per a few surveys done in India the overall awareness about credit scores is pretty low. It is likely that the few who know about credit rating and its importance may still not be aware of what the scores mean or how to interpret them. It is important to mention here that credit scores are generally a number ranging from 300 to 900 but not always; so let us take a look at different scoring ranges and what they mean.

Credit Report Scores: A few Basics

  • Though generally the scores are a number but sometimes it can also be non-numeric like NA or NH (we explain what this means in the later part of this discussion.)
  • It is possible to have a score of 0 or -1 too; this also is explained later.
  • In India there are four agencies that provide credit ratings for individuals and it is possible that the score provided by each may vary slightly.
  • However if one has followed the basic tenets of being a good borrower then usually there should not be a problem.
  • A credit score is different from a credit report.
  • No debt does not mean a good credit score.
  • Credit scores have nothing to do with an individual’s income levels.
  • Checking one’s score once a year is recommended; it is possible to get a free CIBIL report online.

Reading and Understanding Credit Report Scores.

As we discussed earlier that the scores are usually but not always numeric; here we discuss what scores at each level and also if expressed in alphabets mean.

Score What it Means
NA/NH NA means “not applicable”; this means that the concerned person has a history less than six months old so giving a score is not possible. NH means no history, the person has no history and hence no rating can be done.
0 0r -1 0 as explained above is same as “not applicable”, the history is less than six months old and -1 indicates “no history”.
350-549 This is definitely not a good place to be in credit health wise and is definitely a sign to get worried. This score indicates that person has been defaulting on payments and has low credit worthiness. The likelihood of getting any fresh loans with this score is nil. This situation requires quick and immediate action.
550-649 This is a situation between the bad and the good. Though it is not a score where the borrowers will be outright willing to accept the loan application but unlike the above the might be willing to consider depending on what the detailed credit report says. This score indicates there are some lapses but the situation is not alarming and there is definitely room from improvement.
650-749 A score in this region indicates fairly good credit behavior and the person should definitely try to maintain the same if not strive towards improving the score. It indicates of responsible credit behavior and getting a loan application accepted is not likely to pose a challenge.
750-900 This of course is an indicator of excellent borrowing habits. The person is regular with his payments and can be trusted with all loans and borrowings. Needless to say getting a loan approved with this score will be a cakewalk.

The above table can help you in understanding your credit scores and what it means for your overall financial health and as well as for getting a loan application approved. Credit scores are just although an important part of the Credit Information Report (CIR). The CIR is a detailed document and one must go through it carefully to understand in detail one’s credit history and details. If you want to get free credit report you could follow this link: Free Credit Score Report | Free CIBIL Score Report -



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