When checking your CIBIL report, you may sometimes see the remark LSS instead of a regular 300–900 score.
Many borrowers panic, thinking LSS means a low score — but that’s not true.
LSS simply means CIBIL doesn’t have enough credit history to generate a proper score.
Let’s break down what LSS means, why it happens, and how you can fix it.
What Does LSS Mean in CIBIL?
LSS = Limited or Short Credit History Status
This status is shown when:
You have no previous loans or credit cards, or
Your credit accounts are too new, or
There is less than 6 months of repayment data, or
Your credit history has been inactive for years, or
All your loan accounts were recently closed.
In short:
👉 LSS means you are a “thin-file borrower” — someone with little or no credit data.
Why Does LSS Appear?
1. You’re a first-time borrower
Most common reason. No past loans = no score.
2. You recently got your first credit card/loan
Score takes 3–6 months to build.
3. Inactive credit behaviour
If you haven’t taken any loan or used a credit card for a long time.
4. All accounts closed
Once loans/credit cards are closed, scoring resets over time.
5. Very few transactions
Low activity means CIBIL cannot calculate repayment patterns.
Does LSS Hurt Your Loan Chances?
Yes — having LSS makes lenders cautious because they cannot judge your repayment behaviour.
Impact of LSS on borrowers:
Lower loan approval chances
Smaller loan amounts
Higher interest rates
Additional documentation asked by lenders
More scrutiny of income and job stability
However, LSS is not a negative mark — it simply means you need to start building credit history.
How to Remove LSS and Build a CIBIL Score Fast
Here are the practical steps:
1. Get a Secured Credit Card (Best Option)
Take a credit card against a fixed deposit.
Use it for small monthly expenses and pay in full.
2. Take a Small Personal Loan or Consumer Durable Loan
Even a small EMI loan (₹10,000–₹50,000) helps build history.
3. Keep the Account Active for 6 Months
CIBIL needs at least 3–6 months of continuous activity to generate a score.
4. Maintain Good Credit Habits
Pay on time
Keep utilisation below 30%
Avoid multiple loan applications
Check report regularly
5. Use BNPL (Buy Now Pay Later) Responsibly
Some fintech BNPL platforms report data to credit bureaus.
Timely payments help build history.
How Long Does It Take for LSS to Disappear?
Usually:
3 months for initial score generation
6 months for a stable CIBIL score
12 months for strong credit health
Common Myths About LSS
❌ “LSS means my score is low.”
No. It means no score, not low score.
❌ “Banks reject everyone with LSS.”
No. Many lenders offer loans to first-time borrowers.
❌ “I must take a big loan.”
Not true — even a small EMI helps build your score.
FAQs
1. Is LSS displayed instead of a CIBIL score?
Yes — when there isn’t enough data to calculate a score.
2. How long does it take to convert LSS to a numeric score?
Typically 3–6 months of active credit use.
3. Can I get a loan with LSS?
Yes, but the amount may be lower and interest higher.
4. Does a secured credit card help remove LSS?
Absolutely — it’s one of the fastest ways to build history.
5. Does LSS harm my financial profile?
No. It simply means you are new to credit.
Published on : 19th November
Published by : SMITA
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