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The CIBIL Score 2.0 introduces a risk index score range for individuals with less than six months of credit history.

The power of the CIBIL score cannot be undermined, especially if you are a loan seeker. Usually, the lender has a right to reject the loan application if the score is low. The CIBIL score is a three-digit numerical summary of your credit history that is calculated using information from the ‘Accounts’ and ‘Enquiries’ sections of your CIBIL Report. It ranges from 300 to 900. The closer your credit score is to 900, the more likely your loan application will be approved.

Understanding “NA” or “NH”

If your CIBIL score has terms like “NA or “NH,” you should understand it is not in any way detrimental. These terms mean that you lack a credit history, or your credit history is insufficient to be scored.

The CIBIL score of -1 (NH) indicates that the borrower has no credit history or track record. A credit score of 0 (NA) indicates that no credit history is available on a CIBIL credit report (NA). As indicated by this score, the borrower’s credit history is less than six months old.

What is CIBIL score 2.0?

The Transunion CIBIL score 2.0 is an updated version of the CIBIL score that has been designed with current consumer profiles and credit data in mind. Banks are gradually transitioning to the new version, and you may notice some differences between the new and previous versions (i.e., the score 2.0 may be lower than the earlier version).

Please keep in mind that the score displayed on the dashboard is a previous version. However, the difference in the credit score has no bearing on the credit decision process during the loan approval process, as both versions of the score may have a different score eligibility cut-off when processing the loan application. Lenders’ loan eligibility criteria may vary depending on the version they are using.

Additionally, the CIBIL score 2.0 introduces a risk index score range for individuals with less than six months of credit history.

Previously, these individuals were classified as having “No History – NH.” Under the CIBIL score 2.0, the risk score is between 1 and 5, with 1 indicating “high risk” and 5 indicating “low risk.”