CIBIL score plays a vital role in understanding the credit risks of an individual. The Credit Information Bureau (India) Ltd or CIBIL is a Reserve Bank of India (RBI) authorized credit agency which offers scores and reports for individuals wishing to get different credits. Banks and NBFCs consider this score or report to decide the creditworthiness of that individual.

The CIBIL score is generated based on the individual’s credit information. With the invention of Artificial Intelligence (AI) and Machine Learning (ML), the accuracy of CIBIL score has also increased. By going through past data of an individual which directly or indirectly provides any information regarding the individual’s credit history, CIBIL score is calculated using an algorithm. While the method remains the same but the calculations differ as there are over 258 different variables included in the algorithm. This is just to ensure precision in the result.

The CIBIL score ranges from 300 to 900, higher the score; greater is the trustworthiness of an individual.