CIBIL Score Minus 1
CIBIL Score -1, CIBIL Score 0
- A CIBIL score -1 means that there is No History (NH) or credit track record available.
- A score of 0 on a CIBIL credit report means Credit History Not Available (NA). Here borrower’s credit track record is available for a period of less than 6 months.
- CIBIL Transunion 2.0 provides a score or risk index for new borrowers within a range of 1-5. Score 4-5 represents low risk, 3 means medium risk and 1-2 represents high risk.
- Some banks may not provide loans to borrowers with CIBIL score of 0 or -1.
CIBIL -1, CIBIL minus 1
A CIBIL score -1 (NH) on a CIBIL credit report indicates that there is No History (NH) or credit track record available for the borrower. You can have CIBIL Score NH (-1), even if there is no credit activity for 2 years, that is your credit repayment history is older than 24 months. This situation might even occur if you don’t have direct credit exposure on your name (for instance you are just using add on credit cards).
While, fundamentally this is not a bad situation to be in, it deters banks and other lenders to lend to the customer for want of an adequate credit checks/track record. Some banks may reject the application, while a few banks or NBFCs might still decide to lend based on a credit appraisal on other factors including the salary/income proofs, educational background, employer etc. of the prospective borrower.
CIBIL 0, Zero CIBIL Score
A score of 0 (NA) on a CIBIL credit report means Credit History Not Available (NA). This score indicates that the borrower’s available credit track record is for a period of less than 6 months. In this case banks will evaluate Credit Transunion 2.0.
Many banks have migrated to the new credit score versions, thus improving their ability to take a decision to lend for borrowers with less than 6 months of credit history. However, those on the older credit score versions might still receive a report which gives a score of 0 or -1 for new borrowers.
CIBIL Transunion 2.0
CIBIL has launched a new version of their credit reports knows as CIBIL Transunion 2.0 which follows a different approach for evaluating the past history of the borrower with less than 6 months of credit history. CIBIL 2.0 provides a score or risk index for new borrowers within a range of 1-5, where 1-2 represents the highest risk of default, 3 represents medium risk and 4-5 represents the least risk of default
The score is dependent on various parameters such as loan type (secured or unsecured), past credit seeking activities (like number of loan enquiries), 3 months overdue in any month for the past loan period, demographics (like age and location) etc.
Other two leading credit score agencies of India, Experian and Equifax have also followed suit by offering credit scores for new borrowers. Experian measures the scores of such customers on a grading scale of one to six, where one means highest risk of default, and six means lowest risk of default. Equifax gives a score in the range of 300-900, which is similar to the scores which a potential borrower with adequate credit history would get.