When it comes to managing your finances, understanding your credit history and creditworthiness is essential. In India, the Credit Information Bureau (India) Limited (CIBIL) is one of the major credit bureaus that collects and maintains credit-related information of individuals and businesses. CIBIL score and CIBIL report are some of the frequently used terms in the financial world. It is essential to know the meanings of these terms and the difference between them when you are planning to apply for a Home Loan or a Loan Against Property.
What is a CIBIL Score?
A CIBIL score is a three-digit credit score assigned by the TransUnion CIBIL. This number represents a person's credit behaviour based on their credit history. A credit score ranges from 300 to 900. This score also determines if an applicant's loan application will be approved or rejected. Any score above 750 is considered an ideal CIBIL score and it helps in evaluating your creditworthiness. A low CIBIL score may still make you eligible for a loan, but you will likely face a higher interest rate on the borrowed amount. The way your CIBIL score is calculated depends upon many factors such as your repayment history, credit utilisation ratio, debt-to-income ratio, and the mix of credit types.
What is CIBIL Report?
A CIBIL report also called a Credit Information Report (CIR), is a comprehensive document that contains details about a person’s current and past loans, credit-related information, missed payments, financial behaviour, and other data including their PAN number, date of birth, place of residence, and gender. To produce a thorough CIBIL credit report, credit bureaus gather credit information from banks, financial institutions, and lenders. It is a detailed document that provides insights into an individual’s credit history and helps assess the risks associated with extending loans. It is important to have a good CIBIL report to be eligible for favourable credit.
A person’s CIBIL credit report may have the following details:
- Personal data such as name, gender, and date of birth
- Contact information such as place of residence, mobile numbers, and email addresses
- Employment information
- Account information such as number of accounts, loan settlement, unpaid debt, credit card details, and credit card cancellation details
- Enquiry information
Also Read: Importance of a Credit Report
Key Differences Between CIBIL Score and CIBIL Report
Now that you know the meanings of these terms individually, it is essential to determine the difference between a CIBIL score and a CIBIL report. The table below explains the differences comprehensively:
| CIBIL SCORE | CIBIL REPORT |
|---|---|
| A three-digit number that represents a person’s creditworthiness. A credit score is a part of the CIBIL credit report. | A detailed report that contains a person’s financial history. |
| It is calculated based on a person’s credit history. | It consists of a person’s credit history, repayment history, the number of credit accounts, the amount of credit used, and any defaults or late payments made. |
| It is a numerical summary derived basis your credit information. | It is a document of your financial activities. |
How to Improve Your CIBIL Score?
Now that you know about CIBIL score, you might be wondering how to improve your CIBIL score and why you should do so.
Improving your credit score is essential for securing better loan terms, lower interest rates, and increased financial opportunities. an ideal credit score of 750 or above can help you avail of any loan at feasible terms. It can take several months to see a noticeable impact on your credit score when you decide to increase it. To improve your CIBIL score, you need to keep in mind a few things:
- Pay your dues on time
- Keep your credit card utilisation ratio low
- Avoid applying for multiple loans simultaneously
- Monitor your credit report
- Keep old credit accounts open
The above tips can help you build a good credit score for your loan approval.
Where and How to Check Your CIBIL Score Online?
To check your credit score for free, follow the steps given below:
- Go to our CIBIL check form.
- Enter your name, mobile number, and date of birth.
- Enter your PIN code, PAN, and email ID.
- Click on ‘Generate OTP’ to verify your mobile number.
- Once entered, you can view your CIBIL score. You can also click on ‘Download Now’ to download your credit report.
A credit score is a numerical indicator of your creditworthiness assigned by any of the four credit information bureaus in India. A CIBIL score, specifically, is provided by TransUnion CIBIL. It ranges from 300 to 900, and is widely used by lenders to assess loan eligibility.
You can check your CIBIL score for free by following these steps:
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Access our CIBIL check form.
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Enter the required details, such as your name, mobile number, and date of birth.
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Next, enter your PIN code, PAN, and email ID.
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Click on ‘Generate OTP’ and enter it in the respective field.
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Once you enter the OTP, you’ll be able to see your CIBIL score
It is a good idea to check your credit score monthly to keep track of your score, improve it if necessary, and flag inaccuracies.
Missed or late payments, high credit utilisation, numerous credit enquiries in a short period of time, and defaults in your credit history can affect your credit score negatively.
Yes, a higher CIBIL score (typically above 750) can improve your creditworthiness and increase the chances of approval at better terms.
A score above 750 is generally considered ideal, indicating strong creditworthiness and increasing the chances of favourable loan approval.
