What Does NA/NH Mean in CIBIL Score

Your CIBIL score plays a crucial role in determining loan approvals and the interest rates you’re offered. But what does it mean if your CIBIL report shows NA/NH (Not Applicable/No Hit or No History)?

This indicates that you have no recorded credit history, making it harder for lenders to assess your creditworthiness. It’s common for first-time borrowers or those who haven’t used credit in years.

However, there are ways to build a strong credit profile. This article explores the meaning of NA/NH in a CIBIL report, its impact, and actionable steps to establish or improve your CIBIL score.

CIBIL Scores in India

A CIBIL score is a three-digit number (ranging from 300 to 900) that represents an individual's creditworthiness based on their financial history. A higher score indicates responsible credit behaviour, improving the likelihood of loan approvals with favourable interest rates.

The CIBIL score range and interpretation is as follows:

• 750 – 900 (Excellent)
• 650 – 749 (Good)
• 550 – 649 (Average)
• 300 – 549 (Poor)

The score is influenced by several factors such as your payment history, credit utilisation ratio (should ideally be below 30%), credit mix, and recent credit/loan enquiries.

What Does NH or NOHIT Mean?

An NH status in a CIBIL report means no credit history exists for an individual. This occurs when a lender requests a credit score, but CIBIL (or any other credit bureau) does not have sufficient data to generate one.

There are several reasons why an NH status may appear:

• Never taken a loan or credit card: If an individual has never availed of any form of credit, CIBIL lacks a repayment history to assess and assign a score.
• No recent credit activity in CIBIL report: Even if the person has used credit in the past, an extended period of inactivity – such as not taking new loans or not using credit cards – can result in an NH status.

What Happens if My CIBIL Score Is NH or NOHIT?

An NH or NOHIT status means lenders cannot assess your creditworthiness through past borrowing records. In such cases, they may use alternative criteria to evaluate your loan application. While an NH status does not automatically result in loan rejection, it often leads to stricter eligibility checks and may require additional documentation.

Here’s how different factors influence loan approval when a credit score is unavailable:

Income

Lenders assess income to determine repayment capacity. A stable and sufficient monthly income increases approval chances.

Employer’s Status

Working for a reputed private company or a government organisation is ideal. Lenders consider stable employment with well-established firms as a positive indicator of financial reliability.

Loan Amount

Smaller loan amounts are easier to approve for NH borrowers since they pose a lower risk. Larger loan requests may require stricter scrutiny, a co-applicant, or a guarantor.

Type of Loan

Secured loans, such as a Loan Against Property, may be more accessible to NH borrowers compared to unsecured loans, as they reduce the lender’s exposure to risk.

Guarantor or Co-signer

Having a guarantor or co-signer with a strong credit history can improve approval chances. Their credit profile adds an additional layer of assurance for lenders.

Ultimately, the decision to approve a loan with an NH or NOHIT status rests entirely with the lender’s internal policies and risk assessment framework.

How to Build a Credit History?

Building a credit history involves the responsible use of credit products and consistent, on-time repayments. Here are some effective ways to get started:

Take a Small Personal Loan

Applying for a small-ticket personal loan and repaying it on time helps establish a repayment track record. This strengthens your credit history and improves your eligibility for future loans.

Credit Card

Opt for a secured or an entry-level credit card. Use it for small, manageable purchases, pay your dues on time, and keep your credit utilisation ratio low – ideally below 30% of your available credit limit.

Shop on EMI

Purchasing essentials on no-cost EMI through debit or credit cards helps create a repayment track record.

Conclusion

An NH status reflects a lack of credit history, not poor creditworthiness. While it might limit immediate borrowing options, you can build a credit profile over time through responsible use of credit cards, no-cost EMI purchases, or small personal loans, eventually leading to a strong CIBIL score.

Exploring personal loan options? At SMFG India Credit, you can access funds of up to INR 30 lakhs* at competitive interest rates, even with zero credit history, provided you meet other eligibility criteria. Apply online today or reach out to us for personalised assistance.