You might have heard of the terms CIBIL score and CIBIL report, especially at times when you would have approached banks for loans and credit cards. Both the terms are intertwined and leave a significant impact on a person’s credit status. However, there’s a certain difference between the CIBIL score and report.
Banks always examine CIBIL scores and CIBIL reports before they lend credit cards or loans to customers.
With today’s tech-savvy world and people’s access to extensive internet connectivity, getting credit reports and tracking credit scores has become fairly easy. Customers can be informed of their credit score and history. Not only will this help them keep up a good credit record, but it will also help them improve their poor credit score.
The difference between the credit score and report can be understood by analysing their meaning and features. Therefore, let us first begin with the definition of the CIBIL score.
Table of contents
What is a CIBIL Score?
A credit score or a CIBIL score is a set of three-digit numbers that signify the creditworthiness of an individual. CIBIL scores are extracted by credit-related information and processing loan details of customers which are furnished by lenders registered with CIBIL known as a credit bureau.
The credit score by CIBIL varies in the range of 300 and 900. Among these, a credit score above 690 and below 750 is considered “good”, while a score of 750 is considered “very good” and those lying between 750 to 900 fall in the “excellent” category.
Anything below a score of 690 doesn’t reflect well on the customer’s creditworthiness.
Factors Affecting the Credit Score of a Customer
Credit bureaus employ various frameworks to provide the final credit score of a customer. Those parameters may include the following:
- A number of credit cards you own,
- Credit utilisation information
- Repayment history of credit card bills
- Particulars of the number of secured and unsecured loans availed.
What is a CIBIL Report?
A CIBIL report or a credit report or a CIR (Credit Information Report) is a running record of the credit scores and information pertaining to loans and credit.
Not only does a credit report comprise the financial particulars of the customer, but it also has personal information such as the name, address, PAN number, gender, etc. A CIBIL or credit report is an essential document that helps you keep a trace of all your credit-related data.
Usually, CIBIL generates the CIBIL or credit report with the help of data received from several banks and lending institutions. Such data is then formatted and processed to create a detailed credit report for every customer.
Ideally, every customer must avail their credit reports every year to track their records. In case of any discrepancies, they can correct them.
Getting a credit report is fairly easy. You can apply with CIBIL by simply visiting their website, filling up a few information, and paying the required fees. The reports and scores have a certain fixed price. It is recommended that you apply for it to improve your credit scores.
Contents of a CIBIL Report
Given below are some details that are commonly included in a credit report:
- Personal details such as the name, age, gender, address and more.
- Employment details including the income details.
- Defaults on loans, if any
- Loan-related information including the types of loans availed in the past, current or ongoing loans, if any and their subsequent repayment timelines
- Credit card cancellations, if any
- Loan settlements, if any
- Defaults related to credit card bill payment, if any
- Particulars of all the credit cards held by you or the customer
- Number of queries you have made through a number of loan providers
- Credit score, which is an essential part of your credit report
Until now, we have talked a lot about CIBIL score and CIBIL report, but the question is what is CIBIL? Let’s find out-
About CIBIL
CIBIL stands for Credit Information Bureau India Limited. It is considered one of the most acclaimed credit information companies in India, besides the three others.
Its main objective is to collect and maintain customer information related to credit and loans and other particulars such as customers’ gender, address, date of birth (DOB), PAN number, and more.
Such customers’ details are sourced each month from several member institutions which mostly include banks, NBFCs and other financial institutions.
Later, all the data pertaining to different customers’ credit are processed individually to create the credit report for each customer. Plus, it is to figure the final credit score for every one of them.
Then, if any bank requests for these credit scores, CIBIL provides the same to the bank and other lending institutions so that they can use it to sanction loans to the customers.
Difference Between CIBIL Score and CIBIL Report
Although these two terms are interlinked, CIBIL Score and CIBIL report differ from each other on a few grounds. They are as follows:
CIBIL Score vs CIBIL Report |
||
|
Basis of Comparison |
CIBIL Score/ Credit Score |
CIBIL Report/ Credit Report |
|
Definition |
CIBIL Score is a set of three-digit numbers that signify the creditworthiness of a customer. |
CIBIL report is a document or record of a customer’s credit and loan related information. |
|
Content |
It contains numbers ranging from 300 to 900. These numbers are further categorised as bad, good, very good and excellent. |
The report contains financial particulars of the customer, but it also has personal information such as the name, address, PAN number, gender, etc. |
|
Work |
Represents the creditworthiness of a customer. |
Represents the entire credit history of a customer. |
Besides these, there isn’t much difference to know. Everything has been already described in the above sections.
Frequently Asked Questions (FAQs)
Is a Credit score and CIBIL score the same?
Yes, a credit score and the CIBIL score are the same as they both indicate the creditworthiness of an individual. However, a Credit Score and CIBIL vary.
While a credit score represents a three-digit number ranging between 300 to 900, CIBIL is one of four credit rating agencies in India.
Which CIBIL report is accurate?
CIBIL report provided by the CIBIL itself is the most accurate one. Besides CIBIL, Experian also offers the most accurate credit report.
Why is my CIBIL score different on various sites?
India has four different RBI-licensed credit bureau companies and each of them uses its own unique models, proprietary logic, algorithms, and techniques.
There’s a possibility that one credit bureau may assign a credit score to a thin-file consumer’s credit profile and history, while other credit bureaus may not. As a result, your credit or CIBIL score may differ on different credit bureau sites.
Can CIBIL score go wrong?
Mostly CIBIL scores don’t go wrong if you avail it from a trusted company. However, they can vary for a different credit bureau as each of them has different parameters for determining the score.
How can I clear my CIBIL report?
If you have a bad CIBIL score or default on your CIBIL report, the very first thing you need to do is to get yourself out of the defaulter’s list. You can approach your bank and request them to increase your loan’s tenure.
You can also request your bank to defer your EMI payments for a few months. This could be helpful during a medical emergency or when you have lost your job. Although banks rarely do approve of the same, a proper negotiation can get you a good deal.
Note: Deferring your EMIs may attract certain charges on EMIs.
