A cibil score collects credit-related data from banks and financial institutions to generate credit reports and scores for individuals and businesses.A credit score is a numerical representation of an individual's creditworthiness, determined by various factors such as credit history, payment record, credit utilization, and length of credit history.
What is CIBIL?
TransUnion CIBIL, formerly known as CIBIL (Credit Information Bureau (India) Limited), is India’s first credit information firm. It collects credit-related data from banks and financial institutions to generate credit reports and scores for individuals and businesses.
After being acquired by TransUnion, a prominent provider of credit and identity management services, CIBIL is now known as TransUnion CIBIL.
Lenders rely on the credit information maintained by TransUnion CIBIL to assess the creditworthiness of borrowers before granting them credit. Your ability to secure a loan, credit card, or other forms of credit depends on your credit score and credit report, both of which are provided by TransUnion CIBIL.
What is CIBIL Score?
CIBIL, one of India’s four credit agencies, provides credit scores known as ‘CIBIL scores’. These scores are three-digit numbers that reflect an individual’s credit history and ability to repay debts.
The credit behavior displayed in a person’s credit information report, specifically in the ‘Accounts’ and ‘Enquiries’ sections, influences their CIBIL score. The score ranges from 300 to 900, with a score of 700 or higher generally considered favorable.
Lenders and financial institutions heavily consider a person’s CIBIL score when assessing their creditworthiness for loans, credit cards, and other financial products.
What Information is Available in the CIBIL Report?
The CIBIL report consists of six sections that provide comprehensive information about your credit history:
- Credit Score: This section displays your credit score, which is a numerical representation of your creditworthiness based on your credit behavior. A higher score indicates better creditworthiness.
- Personal Details: This section includes your personal information such as name, date of birth, gender, PAN number, and voter’s ID.
- Contact Details: This section lists your contact numbers and addresses as reported by different financial institutions.
- Employment Details: This section shows your monthly income, as reported by banks or other lenders.
- Account Details: This section provides a detailed overview of the credit facilities you have utilized. It includes information about the lenders, types of credit facilities, account numbers, ownership details, dates of opening and last payment, loan amounts, current balances, and payment history over the past three years.
- Inquiry Details: This section records the number of times your credit report has been accessed by banks or financial institutions for verification purposes.
Overall, the CIBIL report offers a comprehensive view of your credit history and financial behaviour, helping lenders assess your creditworthiness when you apply for loans or credit facilities.
What is the Credit Score?
A credit score is a numerical representation of an individual’s creditworthiness, determined by various factors such as credit history, payment record, credit utilization, and length of credit history. It is a three-digit number ranging from 300 to 900.
Lenders and financial institutions utilize credit scores to evaluate a person’s likelihood of repaying debts on time. A higher credit score indicates lower credit risk and can result in more favorable loan terms, credit card offers, and other financial opportunities.
Difference Between the CIBIL Score and Credit Score
| Criteria | CIBIL Score | Credit Score |
| Definition | A credit score is provided by Credit Information Bureau (India) Limited (CIBIL) to evaluate an individual’s ability to repay debts. | A numerical representation of a borrower’s creditworthiness. |
| Calculation | It is calculated based on the information provided by different credit institutions in the person’s credit report. | Credit scores are determined by taking into account various factors, including the individual’s track record of making payments, the amount of credit they are currently using, the types of credit they have, the length of time they have had credit accounts, and any new credit accounts they have opened. |
| Range | 300 to 900 | 300 to 850 or 900, depending on the credit bureau |
| Credit Bureau | One of four credit bureaus in India, along with Equifax, Experian, and CRIF High Mark. | There are multiple credit bureaus in different countries, such as Experian, Equifax, TransUnion, and others. |
| Authority | CIBIL is regulated by the Reserve Bank of India. | Credit bureaus are regulated by different authorities in various countries. |
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