What is the CIBIL Score -1, When does it Comes?

Last Updated : Jan. 2, 2025, 2:50 p.m.

A CIBIL score is a 3 digit number that is in the range of 300 to 900, with 900 being the highest. It is given by CIBIL, which is one of the most popular credit information companies licensed by the Reserve Bank of India. This score reflects the creditworthiness of an individual. Lenders and credit card companies look at this score before approving your loan or issuing a credit card in order to understand your credit history. Let us now read on to find out about CIBIL score -1.

You are no stranger to the fact that you need to maintain a good CIBIL score to have access to loans when you need them. It is just like maintaining your fitness profile, you must maintain you credit profile to make it look satisfactory to the lender. Banks and financial institutions assess your credit score while evaluating your loan application, higher your credit score the better chances you have in getting the loan approved. More than 750 CIBIL score is considered to be the good score to get the loan approval.

But it is not always mandatory that if you have CIBIL score then only you can get a loan. Few lenders are available out there to offer you loans, if you don’t have any credit history. That’s where we wanted you to have a bit of idea, if you are new to credit and don’t have a credit history then also you can apply for loans or credit cards and can get one.

What Does a CIBIL Score of -1 Indicate?

A CIBIL score of -1 indicates that the credit information company does not have any details about your creditworthiness. It means that there is no information about your credit history since there was no credit available in your name for the past 24 months. It is also called ‘No History’ or NH. It will be a great challenge although not impossible to get a loan or credit card with a CIBIL score of minus one, since credit score is the main deciding factor for approving a loan or a credit card. So, it is important to establish and maintain a good credit history for preventing a CIBIL score of -1 and increasing borrowing opportunities.

How to Get a Loan with a CIBIL Score of -1?

Here are the things you can do to get a loan with a CIBIL score of -1 -

• You can talk directly to the bank or credit card company with which you have applied for the loan or the credit card. Then, you can explain why you should be given the loan or the credit card. You can submit income proofs, ITRs, employment documents such as salary slips, income certificates, bank statements to indicate consistency of account balances, and other documents to reflect your financial status.
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  You can apply for secured loans or small loans or secured credit cards and pay your EMIs and bills without defaulting. By doing this, you will be able to build a good credit score over time. Your CIBIL report will have good remarks about your creditworthiness. The report will say - The first loan you took was successfully repaid in full and on the same terms on which you took the loan. However, do not try to foreclose your loan or arrive at a settlement with your bank.

How to Improve your CIBIL Score?

• Repay your loans and credit card bills on time without defaulting.

• Do not apply for multiple loans within a short duration since that will be perceived as financial instability.

• Speak to your credit card issuer and increase your credit limit while maintaining the same expenditure. This will automatically lower your CUR or credit utilization ratio. This lower ratio will ultimately enhance your CIBIL score.

• Maintain a credit utilization ratio within 30% of your credit limit. This reflects to lenders that you are managing your credit responsibly.

• Choose a longer tenure for your loan. Opting for longer tenures will lead to reduced EMIs per month thus lessening the financial burden. So, you can pay your EMIs easily without defaulting. However, you will have to pay more interest over time.

• Monitor your CIBIL score and credit report regularly in order to identify any errors or discrepancies that might harm your credit score. You can then raise it with CIBIL and get it cleared.

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• Avoid being a guarantor. If the primary borrowers default on their EMIs, then it will have a negative impact on your CIBIL score. You should agree to be a guarantor only if you are certain of the borrower being able to repay the loan on time.

How to Build a Credit Score for First Time Borrower or New to Credit Borrower?

It’s very simple and hassle-free process to start building your credit score . It will take 6-month credit history to CIBIL to calculate your credit score.

To start with, it is better taking only one credit card rather than going for multiple credit cards. Build your credit history slowly and steadily, maintaining your payments on time without making any default in payments.

And it is better to keep your accounts open, closing them won’t do any harm but the credit bureaus are likely to drop the old and closed accounts from the CIBIL report. Also make sure you use your credit card responsibly, and use as not using it won’t help in building score anyway.

Conclusion

By adhering to the strategies given above for securing loans or credit cards even with CIBIL score -1, you will be able to get the required credit. Also, you can follow the tips given above to improve your score and start taking steps towards it.