What is NH in the CIBIL Score? Full Explanation

In your CIBIL score, NH means “No Hit” or "No History", denoting that there isn't enough information about your credit history to generate a regular credit rating. This blog explains the NH CIBIL score in detail, its impact on your financial health, and how you can borrow money with an NH score.

Understanding NH in CIBIL Score

A "No Hit" or "No History" score denotes that the credit bureau has no data about your borrowing or repayment behaviour. It isn’t a bad or a negative tag, and denotes one of the 3 situations:

1. You’re new to the credit system, and thus have no or minimal credit history 

2. You’ve only used add-on credit cards and have no credit exposure of your own via loans or credit cards

3. You haven't had any credit activity in the last few years

Some credit bureaus and rating agencies may also show NH as -1, which means the same thing: no credit history is available. It’s not a negative mark, just an indication that your credit history is blank.

Also Read: Essential Credit Score Monitoring Tips for Better Financial Health

What Happens if Your Credit Score is NH?

If your credit score is NH, lenders cannot assess your credit risk because there’s no track record. Typically, banks and financial institutions prefer applicants with a good CIBIL score and a longer credit history. As a result, your NH status may affect your chances of loan approval, but do note that you can still avail of a loan and receive approval.

This is because NH is not the same as a low credit rating; it simply means you haven’t started your credit journey yet. As a result, several lenders are open to new applicants. They don't rely solely on your credit score; instead, they assess other factors such as your income, employment stability, and overall financial profile.

Also Read: How To Improve Credit Score In 30 Days in India?

How Can You Apply for a Loan with an NH CIBIL Score?

Since you don’t have a credit history, you’ll need to lean on other alternatives. Here’s what you can do:

• Apply with a guarantor who has a strong credit history.

• If you work for a reputable company or government organisation, mention it in your application.

• Request a smaller loan amount that aligns clearly with your repayment capacity.

• Provide solid proof of income, salary slips, bank statements and ITRs to demonstrate financial stability.

• Offer collateral (e.g., fixed deposit, gold, property) by applying for secured loans such as Gold Loan instead of Personal Loan, which reduces the lender’s risk.

While these steps can help you secure a loan now, building credit history is the best way to go from NH to a good credit score. Start with small credit products and make timely payments to establish a positive credit rating.

Also Read: What Is A Good CIBIL Score Value In India?

To Conclude

NH in your CIBIL score means you don't have a credit history, so your score can't be generated. But by showing high income, stable employment, or opting for secured loans, you can still access credit. Over time, responsible credit use will help you build a healthy CIBIL score and credit profile.

FAQs

What does NH mean in CIBIL score?

NH stands for “No hit” or "No History". It means there’s no credit history available to reflect in your CIBIL report.

Does NH affect my home loan eligibility?

For home loans, NH may not be a major issue as the property acts as collateral. Lenders may focus more on your income and repayment capacity.

How can I build my credit history if I have NH?

Start with a secured credit card or a small loan, make timely payments on your loans and credit card bills, and avoid defaults to build your credit history.

How can I obtain credit if I have no credit history?

You can start by applying for secured credit products, such as a credit card or a loan against gold. A guarantor with good credit can also help you qualify.

How can I check my credit information and obtain a free credit report?

You can obtain a free credit report annually from CIBIL or other bureaus to check your credit information and track your credit limit and history.

What’s the difference between a collateral-based loan and a Personal Loan?

A collateral-based loan requires you to pledge an asset (like gold or a fixed deposit) as security, while a Personal Loan does not require any collateral.