No one knows how Cibil rates your finances. Not even your bank

Daybreak

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CIBIL or Credit Information Bureau (India) Ltd is one of only four credit information providers in the country that is licensed by the RBI. It is considered the oldest and the most reliable. It essentially calculates your credit score, a three digit number between 300 and 900, and provides it to banks so they can judge your creditworthiness. Usually, anything over 700 is considered good.

But this whole process is anything but straightforward. In fact, it is shrouded in mystery. Each of these bureaus typically have their own algorithm to compute your credit score. And they are all somewhat similar. But nobody–not the borrowers and not even the banks–fully understand how these credit information providers, like Cibil, actually rate finances.

In this episode, we try to demystify these credit bureaus and their mystery calculations that decide our fate.

Tune in.

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*This episode was first published on February 6, 2025

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

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