What is the Difference Between a Credit Score and a CIBIL Report?

What is the Difference Between a Credit Score and a CIBIL Report?: Whenever it comes to a loan or a credit card, a term comes first, that is ‘Credit Score or Cibil Score’. Credit score is an important measure of a person’s credit rating for paying a loan. Therefore, it plays an important role in the process of applying for a loan or credit card. The CIBIL score is a three-digit number, which is between 300 and 900. After the applicant fills out the application form for a loan or credit card and hands it over to the lender, the lender first checks the applicant’s CIBIL score and report.

There are four credit information companies or credit bureaus in India such as TransUnion CIBIL, Equifax, Experian and CRIF Highmark. These institutions are licensed to collect and maintain financial records related to individuals and generate credit reports / credit scores based on this data.

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The closer you are to a credit score of 900, the better the chances of your loan getting approved easily. Any score over 750 is a good CIBIL score, while a score around 300 is considered bad. If the CIBIL score is low, then the lender may not consider the application further and reject it at the same time. If the CIBIL score is high, the lender will look at the application and consider other details to determine if the applicant is eligible to give credit. It should be noted that in any case CIBIL does not decide whether the loan / credit card should be approved or not.

What is the Difference Between a Credit Score and a CIBIL Report

General credit score limit

Poor: 300-579
Satisfactory: 580-669
Good: 670-739
Very Good: 740-799
Best: 800-850

How to check credit score yourself

Please tell that the person himself can easily know his credit score to decide his eligibility for a new credit card and loan. Apart from the CIBIL website, your credit score can be checked on the websites of many banking service aggregators. You can take a subscription plan to check your credit score on CIBIL’s website. It can also be viewed for free, but using free subscription you will be able to see your current CIBIL report only once a year.

It is also important to know that the formula used to calculate the credit score varies from one credit bureau to another. Therefore, a person’s credit score may vary from bureaucracy.

Keep good credit / CIBIL score like this

  • Pay your credit card bills and loan EMI on time.
  • Limit the use of credit to 30 percent.
  • Check the credit report regularly.
  • Avoid becoming a co-signer or guarantor for a loan, unless you are thinking of taking a loan soon.
  • Avoid taking more debt. Do not apply for a credit card or loan multiple times within a very short time.
  • Maintain balance between secured and unsecured loans.

Some other important points

– Credit score can never be zero. However, if a person does not have a credit history or is too new to credit, they can be combined with a credit score of “NA” or “NH”.
– Credit Institutions Credit bureaus submit data after every 30-45 days, after which the credit score is updated by the credit information companies.
– CIBIL cannot delete or modify the record displayed in your CIR.

Also know the CIBIL report

CIBIL report means CIR is a part of a person’s credit payment. In a period, how one takes off his debts, he has a complete account in the CIBIL report. It also has details of bankruptcy and late repayment of debt. Simply put, a credit report tells when and how a person applied for a loan or credit card, from which bank or financial institution got a loan or credit card and paid the loan or credit card EMI and bill on time. Gone or not

However, it does not contain the details of your savings, investment, or utility bill or FD. The CIBIL report contains the CIBIL score and credit summary of the consumer, personal information, contact information, employment information and loan account information. The credit report also contains information about which banks / NBFC have checked your credit report. Credit score is calculated using the proprietary formula using the credit history data found in the credit report.

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