A business credit score is a numerical representation of a company's creditworthiness, similar to an individual's credit score. It reflects your business's ability to repay its debts and obligations, based on its credit history, current debts, and other financial factors. Lenders, suppliers, and investors use this score to assess the risk of engaging in financial transactions with the business. The score can influence credit terms, such as interest rates and credit limits. It can impact the company's ability to secure financing at favourable terms.
What is an Ideal Business CIBIL Score?
Various credit bureaus have their own scoring models to determine a company's credit score. This score ranges from 300 to 900. A score above 700 signifies a strong repayment history on the credit utilised by your business. The most important credit bureau in India, namely CIBIL generates a Credit Information Report (CIR) and assigns appropriate credit scores, also known as CIBIL scores to anyone seeking credit, be it companies or individuals. CRIF High Mark, Experian, and Equifax are the other credit bureaus that provide valid CIRs and credit scores you can check.
Smart Tips to Maintain a Business CIBIL Score Above 700
Improving business credit score takes time. With prudent financial practices, you can enhance and maintain a good business CIBIL score above the requisite mark of 700:
1. Repay Credit Dues
One of the best ways to build a business credit score is by making regular and timely payments of bills and credit dues. Ensure your EMIs or credit bills are paid before the due date. Clear the outstanding amount on credit card bills in full each time. If you only pay the minimum sum, the interest and taxes will accumulate in the next billing cycle, creating a bigger debt.
2. Limit Credit Utilisation
Whenever you avail of credit, restrict your credit usage within the available limit. Usually, the credit utilisation ratio should be less than 30%. Exceeding this limit will harm your business credit score. Therefore, if your company’s expenses are higher, opt for a higher credit limit to protect your credit rating.
Read Also: How to Increase Your CIBIL Score Above 800
3. Avoid Multiple Loans
When you apply for a loan, your lender conducts a credit score inquiry to assess your creditworthiness. Such an inquiry is known as a hard inquiry and can decrease your credit score. Therefore, avoid applying for multiple loans simultaneously. It is also advisable to close existing loans before availing a new one. Similarly, holding multiple credit cards and using them for high-value purchases can be counterproductive if you are unable to pay the bills on time.
4. Check Your Credit Report
Your credit report may contain errors or incorrect information, which can adversely impact your business CIBIL score. Therefore, check your firm’s credit report periodically and get the mistake rectified immediately to improve your score. You can easily check your CIBIL score by visiting the official website of any credit bureau or through credible third-party websites that offer access to credit scores.
Read Also: How to Check Your CIBIL Score for Free
5. Get a Mixed Credit Portfolio
Your organisation's credit portfolio should ideally have various types of credit. A mix of secured and unsecured loans with both long and short tenures can strengthen your credit history. Additionally, you should retain older credit accounts with a good repayment record to enhance your creditworthiness.
Also Read: What is Credit Mix and How Can it Improve Your Credit Score?
Is it Important to Maintain a Business CIBIL Score Above 700?
Lenders normally consider a minimum business credit score of 700 and above while granting loan approvals to companies. They classify potential loan borrowers according to their credit score extending risk-based pricing on certain loans. Thus, companies with a high CIBIL score pose minimal lending risks and can secure substantial loans at attractive interest rates.
Further, business owners can leverage their good credit and personal profiles for more favourable loan terms. A good CIBIL score signifies a credible customer who can manage loans responsibly. A CIBIL score below 700 may result in unfavourable loan terms, such as higher interest rates or shorter repayment tenures.
Maintaining a business CIBIL score above 700 is important for the well-being of a company. Both new and established businesses can improve their credit score in case they have a low CIBIL score. This is an ongoing task that requires smart planning and financial discipline. Monitor your business credit report, track the different lines of credit, observe spending patterns, and ensure timely repayment of debts.
Also Read: Ways You Can Improve Your Credit Score for a Small Business
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Trending Articles

[N][T][T][N][T]
Understanding the Date of Possession in Property Deals2025-10-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Square Feet to Gaj: A Quick Guide for Loan Against Property Applicants2025-04-02 | 2 min

home+loan Home Loan
[N][T][T][N][T]
IGR Odisha: A Guide to Online Property Services and Registration2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding eNACH Mandates: Meaning, Benefits, and How it Works2025-04-03 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Conveyance Deed: Meaning, Types, Purpose, and Key Differences2025-03-06 | 3 min

home+loan Home Loan
[N][T][T][N][T]
BBMP: Full Form, History, and Role in Bangalore’s Governance2025-03-20 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding GWMC Property Tax: Payment Methods, Calculation, and Benefits2025-03-13 | 3 min

[N][T][T][N][T]
HMDA Approval Status Check – A Complete Guide for Homebuyers2025-10-07 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Partition Deed: A Comprehensive Guide to Its Meaning, Format, and Registration Process2025-04-01 | 4 min

loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Kaveri Online Services Portal for Property Registration in Karnataka2025-04-01 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Pay MCD Property Tax in Delhi2025-04-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Stamp Duty and Registration Charges in Tamil Nadu2025-05-08 | 6 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding SDMC Property Tax: A Guide to Online and Offline Payment Methods2025-05-08 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Equitable Mortgage vs Registered Mortgage: Key Differences Explained2025-04-30 | 2 min

[N][T][T][N][T]
Home Loan Processing TAT – Everything You Need to Know2025-10-06 | 3 min

[N][T][T][N][T]
BDA Property Tax in Bangalore – A Complete Guide2025-10-01 | 6 min

[N][T][T][N][T]
Jantri Rate Gujarat – A Complete Guide to Land Valuation2025-09-30 | 4 min

[N][T][T][N][T]
DLC Rate Rajasthan – What You Need to Know2025-09-29 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Khasra Number Explained: How to Find It2025-01-03 | 2 min

[N][T][T][N][T]
Understanding NOC in Property Transactions2025-09-29 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Token Money: Its Importance and Key Considerations2025-01-16 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Bigha in India: Convert 1 Bigha to Square Feet, Acres, and Hectares2025-01-31 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Gift Deeds: A Comprehensive Guide to Registration and Documentation2025-01-29 | 2 min

[N][T][T][N][T]
7 Ways to Manage Household Waste and Live Sustainably2025-09-26 | 3 min

[N][T][T][N][T]
Decoding Bigha to Square Metre Conversion in India2025-09-26 | 3 min

[N][T][T][N][T]
Minimum Annual Income for Home Loan – What You Need to Know2025-09-25 | 4 min

[N][T][T][N][T]
Maximising Tax Savings with Home Loans and Rent Payments2025-09-24 | 4 min

[N][T][T][N][T]
How to Save for Your Dream Home in India?2025-09-23 | 3 min

[N][T][T][N][T]
Can You Get a Home Loan Right After Starting a New Job?2025-09-23 | 4 min

[N][T][T][N][T]
How to Get a Home Loan for Your Dream Home in India?2025-09-23 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What is Fractional Homeownership?2025-06-25 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Should You Use Your Annual Bonus to Prepay Loans? Here’s What You Need to Know2025-06-25 | 6 min

home+loan Home Loan
[N][T][T][N][T]
How to Use a Prepayment Calculator Effectively?2025-06-26 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Key Benefits of Availing of a Home Loan2025-06-26 | 4 min

home+loan Home Loan
[N][T][T][N][T]
How Home Loan Rates Are Determined – What You Should Know2025-06-26 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Concept of Freehold Property in India2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Make Your Home Loan Work for You: A Simple Tax Declaration Guide2025-07-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
What is a Good CIBIL Score Range and Why Does It Matter?2025-07-03 | 7 min

home+loan Home Loan
[N][T][T][N][T]
4 Steps to Avoid Identity Theft and Credit Fraud2025-07-03 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Removing Credit Enquiries from CIBIL – What You Should Know2025-07-04 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Simplified Guide to Land Records in Odisha: Bhulekh Odisha ROR and BhuNaksha Verification2025-02-27 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL MSME Rank Explained – Why It Matters for Your Loan Against Property Application2025-07-07 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Get Commercial CIBIL Report – A Guide for LAP Applicants2025-07-07 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Mutation of Property: Meaning, Process, and Importance2025-03-20 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Possession Certificate: Meaning, Importance, and Application Process2025-03-20 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the ECN Number in Your CIBIL Report2025-07-08 | 3 min

home+loan Home Loan
[N][T][T][N][T]
CIBIL Score Rules – What Every Home‐Loan Applicant Should Know2025-07-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Top-Up Loan, Personal Loan, and Gold Loan: Understanding the Differences2025-04-11 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Your Chances of Getting a Home Loan with a Pre-Qualified Offer2025-09-10 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Practical Tips to Improve Your Home Loan Eligibility2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Eligibility for Rs.35,000 Salary in India2025-09-09 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Applying for a Home Loan When Your Salary is Paid in Cash2025-09-09 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding How Home Loan Amount Depends on Salary in India2025-09-08 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Decoding the Right Home Loan Amount for Your Dream Home2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Getting a Home Loan When You Don’t Have Form 162025-09-15 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Much Home Loan Can I Afford in India?2025-09-15 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Tips for a Home Loan in India – Your Complete Guide to a Smooth Application Process2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Rs.90 Lakh Home Loan EMI – A Complete Guide for Homebuyers2025-09-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Circle Rate vs. Market Rate – Understanding the Difference2025-06-17 | 4 min

home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Home Loan Tenure?2025-09-05 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Minimum Salary Criteria for Affordable Home Loans2025-09-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Advantage of a Fixed-Rate Mortgage Loan2025-09-11 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Registration of Home Loan Agreement Explained2025-09-10 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Validity of a Pre-Qualified Home Loan – Everything You Need to Know2025-09-10 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Home Loan Eligibility: Rs.10 Lakh on Rs.15,000 Salary2025-09-15 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Locking Your Interest Rate with a Dual Interest Rate Home Loan – A Smart Way to Begin2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Lock Your Interest Rate with a Dual Interest Rate Home Loan2025-09-17 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility in India – How Much Can You Actually Borrow?2025-09-12 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Stamp Duty on Home Loan in India – What You Need to Know Before Buying a Property2025-09-12 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility on Rs.28.5 Lakh Income in India2025-09-16 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How Easy is a Home Loan Balance Transfer to a New Lender?2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Home Loan Balance Transfer Process2025-09-16 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Is It Safe to Buy a RERA-Approved Apartment in India?2025-09-22 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the RERA Impact on Home Loans in India2025-09-22 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Selling a Property with an Ongoing Home Loan: What You Need to Know2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Eligibility for Salaried Professionals with Limited Work Experience2025-09-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Improve Your CIBIL Score for a Home Loan in India?2025-09-19 | 3 min

cibil Cibil
[N][T][T][N][T]
Check CIBIL Score with PAN Card for Free, in 3 Steps2024-02-27 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Advantages for First-Time Home Buyers2023-07-14 | 4 min

cibil Cibil
[N][T][T][N][T]
How Long Does It Take to Improve a CIBIL Score2023-03-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the Roles of Co-borrower, Co-signer, and Co-owner in Home Loans2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
A Guide to Applying for DTCP Approval for Patta Land Online2025-01-13 | 6 min

cibil Cibil
[N][T][T][N][T]
Impact Of a Co-Applicant’s CIBIL Score On Your Home Loan Application2023-01-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Exploring Square Feet to Centimetre Conversion for Interior Design and Construction2025-03-27 | 2 min

[N][T][T][N][T]
Difference Between Pledge vs. Hypothecation vs. Mortgage2025-09-01 | 4 min

[N][T][T][N][T]
What Does it Mean to Pledge Your Property for a Home Loan?2025-09-01 | 4 min

[N][T][T][N][T]
How to Manage Your Home Loan When Interest Rates Change2025-08-29 | 3 min

[N][T][T][N][T]
Understanding Home Loan Pre-Closure2025-08-29 | 6 min

[N][T][T][N][T]
Factors That Influence Top-up Loan Interest Rates2025-08-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Pick the Best Home Loan Tenure that Suits Your Budget2023-06-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
6 Ways to Reduce Your Home Loan Interest2024-03-20 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Home Loan Settlement: What You Need to Know2025-03-13 | 2 min

cibil Cibil
[N][T][T][N][T]
Easy Ways to Maintain a Good Business Credit Score2024-01-10 | 5 min

[N][T][T][N][T]
Plot Loan vs. Home Loan – Understanding the Difference2025-08-18 | 5 min

[N][T][T][N][T]
Home Loan for a Resale Property – Your Complete Guide2025-08-18 | 6 min

[N][T][T][N][T]
Home Loan Basics – A Friendly Guide for First-Time Buyers2025-08-14 | 3 min

[N][T][T][N][T]
Land Loan vs. Home Loan – Understanding the Key Differences2025-08-14 | 2 min

[N][T][T][N][T]
Salary Certificate for Home Loan – Your Complete Guide2025-08-14 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Things to Avoid When Switching Your Home Loan2025-04-02 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Transfers: Unlocking Better Rates and Terms2025-05-07 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding Property Valuation for Home Loans in India2025-03-13 | 2 min

[N][T][T][N][T]
NRI vs. Indian Resident Home Loans2025-03-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
New Home Loan Subsidy Scheme: A Simple Guide for First-Time Homebuyers2025-04-14 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Home Construction Loan Application Guide2025-03-18 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Eligibility Guide for PMAY Urban 2.0: Credit Linked Subsidy Scheme (CLSS) Explained2025-01-13 | 2 min

home+loan Home Loan
[N][T][T][N][T]
How Your Bank Account Statement Affects Your Home Loan Eligibility2025-03-19 | 4 min

[N][T][T][N][T]
Common Mistakes First-Time Homebuyers Should Avoid