Question 1

How is CIBIL score calculated?

Accepted Answer

CIBIL (TransUnion CIBIL) calculates the 300–900 score on five factors: Payment history (35%), Credit utilization (30%), Length of credit history (15%), Credit mix — secured + unsecured + revolving (10%), New credit inquiries (10%). Lenders use this score to assess loan + credit-card eligibility, with 750+ generally treated as 'good'.

Question 2

How much does a late payment reduce CIBIL score?

Accepted Answer

A 30-day late payment typically reduces CIBIL by 60–110 points, depending on starting score (higher scores fall further). A 90-day default reduces it by 120–180 points and triggers a 'DPD30+' flag visible on your CIBIL report for 7 years. Even a single late payment can move you below 750, the typical premium-card approval threshold.

Question 3

Does closing a credit card hurt CIBIL score?

Accepted Answer

Yes — two reasons. (1) Closing reduces total credit limit, raising your utilization % on remaining cards. (2) Closing an old card shortens average credit history length. Combined impact: typically 20–40 point drop. Never close your oldest card. If a card has an annual fee you don't want to pay, ask the issuer for a downgrade to a no-fee variant instead of closing.

Question 4

How long does a hard inquiry affect CIBIL?

Accepted Answer

Each hard inquiry (loan or credit-card application) typically drops CIBIL by 3–10 points and stays visible on your report for 24 months. Multiple inquiries within 14 days for the same product (home loan rate-shopping) are usually de-duplicated as a single inquiry. Beyond 4 inquiries in 6 months starts to look risky to lenders even if individual point impact is small.

Question 5

What's the fastest way to increase CIBIL score?

Accepted Answer

Fastest: bring utilization under 30% before your next statement date. If you're at 80% utilization and pay it down to 25%, CIBIL can rise 30–50 points within one billing cycle. Other levers: ask for credit-limit increases on existing cards (raises denominator without raising spend), become an authorized user on a family member's clean-history card, dispute any incorrect entries on your CIBIL report via the CIBIL portal.

Question 6

Does checking my own CIBIL hurt my score?

Accepted Answer

No — checking your own CIBIL via CIBIL portal, BankBazaar, Paisabazaar, etc. counts as a 'soft inquiry' and has zero impact on your score. Soft inquiries are also generated when a lender does pre-approval marketing checks (without your application). Hard inquiries are only triggered by YOUR actual loan / card application.

CIBIL Score Simulator

The math behind the deltas

CIBIL Score Simulator

The math behind the deltas