Demystifying Your CIBIL Score: How Credit Bureaus Calculate It and What Really Matters

In today’s credit-driven world, your CIBIL score is like your financial report card. Whether you’re applying for a personal loan, a home loan, a credit card, or even renting an apartment, this three-digit number can make or break your chances. But how exactly is this score calculated? What are the key factors that influence it? And how can you improve your score strategically?This blog post offers a comprehensive, human-friendly breakdown of how credit bureaus — specifically TransUnion CIBIL — calculate your score and what you can do to stay in the ‘good credit’ league.The CIBIL score is a numerical summary of your creditworthiness, ranging between 300 and 900. Issued by TransUnion CIBIL, one of India’s leading credit bureaus, it reflects your credit history and repayment behavior based on data shared by banks, NBFCs, and other financial institutions.