The terms “CIBIL report” and “CIBIL score” are frequently used in banking contexts, particularly when consumers want to apply for a bank credit card. Both of these concepts are connected and impact an individual’s credit standing. Before extending credit to their users, banks review the CIBIL score and report.
Customers should proactively monitor their credit scores and reports in today’s digital environment and global system integration so as to stay informed about their present credit standing. It’s crucial to understand how credit scores and reports differ by examining their definitions and characteristics. This knowledge aids in preserving a clean credit history or raising a low credit score.
Rating
Different agencies use various scoring methodologies. Equifax, for instance, has a range of 1-999. The risk of default that banks attach to a customer is more when they hold lower scores. This makes it challenging for these customers to get loans. The interest rate is typically higher even if banks agree to provide loans to these customers.
In contrast, a CIBIL report is a complete record comprising the full credit information, and a CIBIL score is a three-digit numeric value obtained after performing a CIBIL score login for credit information. It means that credit reports are records containing comprehensive information about a person’s credit history, and credit scores are just numbers representing a customer’s creditworthiness.
What is a credit score?
In India, your credit score is a three-digit summary of your credit history. A 3-digit score, often between 300 and 900, is determined by a credit agency using its algorithm and factors on your credit history. The better your credit score, the more credit-savvy you have historically been. Most lenders in India prefer to offer money to applicants with credit scores of 700 or above.
What is a CIBIL Score?
The Credit Information Bureau (India) Limited is one of India’s four main credit bureaus. Experian, CRIF Highmark, and Equifax are the other three. All four bureaus are authorised by the Reserve Bank of India (RBI). The CIBIL score refers to the credit score determined by CIBIL. The sole distinction between CIBIL and credit score is that you can obtain credit score information from any of India’s four credit bureaus. However, only CIBIL offers only a CIBIL score. At the same time, while any of the four credit bureaus’ credit scores are equally reliable, most banks prefer the CIBIL score.
What is a CIBIL Report?
A Credit Information Report (CIR), which is known as the CIBIL report, is a compilation or running record of details regarding a person’s credit and debt history.
It can be generated using CIBIL score login details. The report includes personal information such as a PAN number, residence, name, gender, and other facts in addition to financial information. The CIBIL report is a crucial tool for tracking your credit-related information.
CIBIL generates a report using client credit information from multiple lending organisations and banks. A thorough credit report for each consumer is created using this data after it has been structured and processed.
The Difference
| CIBIL Score | CIBIL Report |
| 3-digit numeric summary of your payment behaviour | contains your credit history, including personal information |
| based on 24 months of credit behaviour | report provides a 36-month credit history |
| eligibility: at least six months of credit information | NH/NA or No History / Not Available Report may be generated |
Conclusion
Over the past few years, some banks and lenders have begun offering preferential loans at lower interest rates to credit-conscious, high-scoring customers. A good CIBIL Score and a clean CIBIL Report can now open up your options for credit and help you save money.
Every borrower in India should check their CIBIL score from the official CIBIL website before applying for a new loan, primarily if you have previously used credit cards or taken out loans. Only apply for the loan if you are eligible based on the borrower’s credit score requirements. If possible, strive to raise your credit score before applying for a new loan to increase the likelihood that your loan application will be accepted.
