What is a CIBIL Report? This is different from your credit score


Whenever you apply for a loan or credit card, the lender definitely sees your CIBIL Report and your CIBIL Score. However, most people do not know their meaning properly nor do they know what the difference is between them. Especially, people have less information about the CIBIL report. Today we will tell you what are the CIBIL report and CIBIL score and what is the difference between them.

Credit or cibil score

  • The role of credit or CIBIL score is very important in the process of applying for a loan or credit card.
  • The CIBIL score is a measure of the credibility of a person to pay their debt. It is three digits.

How much CIBIL Score is considered good

  • The CIBIL score ranges from 300 to 900.
  • A CIBIL score of 300–579 is considered poor.
  • Up to 580-669 is satisfactory.
  • 670-739 is considered good.
  • 740-799 is very good.
  • A score of 800-850 is the best.

Importance of CIBIL score

  • The probability of getting a loan is very less if the CIBIL score is low. The lender can also reject the application.
  • If the CIBIL score is high, the lender after deciding the application and its details will decide whether to give the loan to the applicant or not.
  • CIBIL itself does not decide whether the loan / credit card should be approved or not.

Cibil report

  • The history of a person’s credit payment is a CIBIL report.
  • The CIBIL report details how a person repays his debts in a given period of time.
  • Details of the person going bankrupt or repaying the debt also remain in the report.

What else does the CIBIL report say

  • How often did the person apply for a loan or credit card.
  • From which bank / financial institution did the person get a loan or credit card.
  • Whether loan or credit card EMI and bill paid on time.
  • Which banks / NBFC investigated the credit report of the person.

Let us know that there are four credit information companies in India – Credit Bureau Transunion CIBIL, Equifax, Experian and CRIF Highmark. These companies collect the financial records of the people and generate a credit report / credit score based on this data. These four companies get license for this work.

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