CIBIL Score Minus 1

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.


What is the Meaning of CIBIL Score Minus 1?

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. 

  • Firstly, if there is no credit history or record in the borrower's name, this would result in a CIBIL-1 score. 
  • Secondly, if the individual has not applied for a loan or credit card in the past 2 years, this could also lead to a CIBIL-1 score. 
  • Finally, if the individual does not have any direct credit exposure in their name, such as with add-on cards, this can result in a CIBIL-1 score as well.

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

What is the Meaning of 0 CIBIL Score?

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

What is the Difference between a CIBIL Score of 0 and -1?

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.

What does a CIBIL score in the range of 1-5 denote?

CIBIL ScoreWhat it means
1Highest likelihood of default
5Lowest likelihood of default
1-5New to credit user with less than 6 months credit history

How do Banks assess an applicant’s repayment capability if they have a CIBIL score of -1 or 0?

Here are the points on how banks assess an applicant's repayment capability if they do not have a credit score:

  • Banks use surrogate and ad-hoc parameters to evaluate the likelihood of total loan repayment by new borrowers.
  • Savings account balance is a factor that can help the lender assess the borrower's financial management and saving capabilities/tendencies.
  • Zero cheque bounces are considered a plus, as disciplined honoring of cheques reflects the borrower's financial discipline.
  • Beginning with secured or small loans, such as entry-level secured credit cards or student credit cards, can make it easier for first-time borrowers to get a loan and build their credit score gradually.
  • Banks consider the credit history of people with similar demographics or from similar geographical regions to deduce the likely creditworthiness of the applicant.
  • The employment situation of the borrower is also considered, as the borrower's job acts as a silent guarantor for the loan amount.
  • The type of residence is also a factor, with borrowers who own a house or have been a tenant for a long time scoring more than those who live in a rented apartment or for a shorter period of time.  
    Banks tend to start with a low credit limit for first-time borrowers, with the same increasing gradually as the borrower's repayment track record grows.

Additional Read : Check Free Credit Score

Impacts of Minus 1 CIBIL Score

Here are the impacts of having a CIBIL score -1:

  1. Limited access to credit: With a CIBIL score of -1, lenders may consider you as a high-risk borrower and may be less likely to approve your credit application. This could make it difficult for you to get a loan or credit card.
  2. Higher interest rates: If you manage to get approved for credit with a CIBIL score of -1, you may have to pay a higher interest rate compared to someone with a good credit score. This is because lenders may see you as a higher risk and may charge a higher interest rate to compensate for that risk.
  3. Limited credit options: With a CIBIL score of -1, you may only be eligible for certain types of credit products. For example, you may only be able to get a secured credit card or a loan with a co-signer.
  4. Difficulty getting approved for rental applications: Landlords may also check your credit score when you apply for a rental property. A low score could make it difficult for you to get approved for a rental application, or you may be required to pay a higher security deposit.

Additional Read : CIBIL Dispute

How to Increase CIBIL Score from Minus 1?

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:

  1. Open a savings account: Having a savings account with a consistent balance can help in building a financial profile.
  2. Apply for a secured credit card: A secured credit card is a type of credit card where the borrower has to keep a certain amount of money as security(normally in the form of FD). It is an effective tool for building credit.
  3. Take a secured loan: Taking a secured loan and paying the EMIs on time can help in building credit.
  4. Become an authorized user: Becoming an authorized user on a friend or family member’s credit card can help in building credit.
  5. Pay all bills on time: Paying bills, such as rent and utilities, on time can help in building credit.
  6. Avoid applying for multiple credit cards or loans: Applying for multiple credit cards or loans at once can negatively impact the credit score.

Additional Read : CIBIL Score Check

CIBIL Score Minus 1 FAQs

Can I get a personal loan on minus 1 CIBIL score?


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.

What does CIBIL no-hit mean?


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.

Why is my credit score negative?


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.

How to take a home loan if CIBIL score is -1?


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.

  • To increase the chances of approval, you need to provide all the necessary documents to support your creditworthiness. These documents include income proofs such as salary slips, bank statements reflecting salary credits, Form-16, tax returns, and employment proof. You may also submit a letter of recommendation from your employer, highlighting your good performance and job stability.
  • To further strengthen your case, you can showcase your other sources of income, increment letters, average bank balance maintained, bonus or reimbursements received, and a good number of assets with zero liabilities.
  • If possible, you can also take a co-applicant on the loan who has a good credit history. This way, the lender will be able to assess the repayment capacity of both the borrowers and grant approval accordingly.

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.