A CIBIL credit score of zero or negative indicates a lack of credit history or past payment default, making it difficult to secure loans or credit cards. To build a credit history, one must apply for credit products, make timely payments, and maintain low credit utilization. It is crucial to monitor one's CIBIL credit score regularly to assess creditworthiness and take necessary steps to improve it.
A CIBIL score -1 means there is no retrievable data about their borrowing behavior. This could happen as there are several scenarios that could result in an individual having a CIBIL-1 score, indicating no available data about their borrowing behavior.
While having a -1 CIBIL score is not a negative situation, it can make it difficult to obtain loans or credit cards, and some lenders may reject applications based solely on the score. Therefore, it is important to establish a credit history and maintain good credit behavior to avoid a CIBIL-1 score. Currently, there are four credit rating agencies in India, namely TransUnion CIBIL, Experian, CRIF High Mark and Equifax.
Additional Read : CIBIL Full Form
If an individual's credit account history is less than 6 months, their credit score will show as Zero (0) because the credit reporting agency does not have enough information to assign them a credit score. Although having a zero CIBIL score is not necessarily negative, it may limit the borrower's ability to get the best loan and credit card offers with lower interest rates compared to those with a good credit score history. This is because the lenders cannot accurately assess the borrower's financial credibility. Nonetheless, individuals with zero credit scores can still apply for loans and credit cards from banks or NBFCs. So, you see having a 0 CIBIL score is not necessarily a bad thing. It just directs banks to be more cautious while lending out any amount to you.
Additional Read : CIBIL Score Range
Additional Read : CIBIL Score Check Free Online By PAN Number
CIBIL score 0 (NA - History not Available) means that an individual's credit history is available for less than 6 months, and the credit reporting agency cannot make any decision on their credit account due to a lack of information.
On the other hand, CIBIL score -1 (NH - No History) indicates that the individual does not have any credit account, which means they have not taken any loans or credit till date to develop their credit profile. It takes a minimum of 6 months of credit history for cibil score calculation.
Moreover, if there is no credit or repayment activity within 2 years in an individual's credit account, their CIBIL Score will also show as -1.
CIBIL Score | What it means |
1 | Highest likelihood of default |
5 | Lowest likelihood of default |
1-5 | New to credit user with less than 6 months credit history |
Here are the points on how banks assess an applicant's repayment capability if they do not have a credit score:
Additional Read : Check Free Credit Score
Here are the impacts of having a CIBIL score -1:
Additional Read : CIBIL Dispute
Improving the CIBIL Score from -1 can be challenging, but there are steps that can be taken to build a credit profile and improve the score:
Additional Read : CIBIL Score Check
Yes, you can get a personal loan on minus 1 CIBIL score. Some lenders may offer personal loans to individuals with no credit history or a minus 1 CIBIL score, but the interest rates and terms of the loan may be unfavorable compared to those offered to borrowers with good credit scores. Additionally, lenders may require additional documentation, such as proof of income, employment, and address, to assess the borrower's creditworthiness.
CIBIL no-hit is a term used when an individual does not have any credit history or credit record with the Credit Information Bureau (India) Limited (CIBIL). This means that the person does not have any credit accounts, such as loans, credit cards, or other financial products, and has not taken any credit in the past. As a result, there is no credit history or credit score available for the person, and they are considered "no-hit" by CIBIL.
It is not very uncommon to have a negative CIBIL score in India, considering as per reports the new to credit population is constantly on the rise. Normally, the credit score is measured on a scale of 300-900. A score of 300 is the lowest, while a score of 900 is considered excellent.
However, if your credit score is 0 or -1, it means that the credit bureau has insufficient data to generate a credit score. This could be because you have no credit history or your credit history is too new.
If you have a CIBIL score of -1, it does not mean that you are not eligible for a home loan. You can still apply for a home loan and get approval from the lender.
Once your home loan is approved and disbursed, make sure to pay all your EMIs on time. This will help you build a good credit history and improve your CIBIL score over time.