TransUnion CIBIL is a Credit Bureau licensed by the RBI and governed by the Credit Information Companies (Regulation) Act of 2005. The CIBIL Score plays a critical role in the loan application process. If the CIBIL Score is low, the lender may not even consider the application further and reject it at that point. If the CIBIL Score is high, the lender will look into the application and consider other details to determine if the applicant is credit-worthy. The CIBIL Score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved. The decision to lend is solely dependent on the lender and CIBIL does not in any manner decide if the loan/credit card should be sanctioned or not. CIBIL Score is a 3 digit numeric summary of your credit history, derived by using details found in the ‘Accounts’ and ‘Enquiries’ sections on your CIBIL Report and ranges from 300 to 900. The closer your score is to 900, the higher are the chances of your loan application getting approved. You can improve your CIBIL Score by maintaining a good credit history, which is essential for loan approvals by lenders. The CIBIL Score 2.0 is a new, updated version of the CIBIL Score which has been designed keeping in mind the current trends and changes in the consumer profiles & credit data. The CIBIL Score 2.0 also introduces a risk index score range for those individuals who have a credit history of fewer than 6 months. These individuals were categorized under the category of “No History – NH” in the earlier version. The score range is from 1 – 5, with 1 signifying “high risk” and 5 signifying “low risk”.