If you have often accessed banking services, then you must have come across the terms CIBIL Score and CIBIL Report, especially while availing of loans. Many people believe that CIBIL Score and CIBIL Report are two different aspects.
But, you should know that both these elements are inter-related and affect the credit status of a person. Both CIBIL Score and CIBIL Report are assessed by banks and non-banking finance companies (NBFCs) before awarding loans to customers.
We live in a world of widespread internet connectivity and global system tie-ups. As a result, Credit Reports and Credit Scores can be tracked by customers. By doing so, they can actively be informed about their credit standing. What’s more, such information also assists in maintaining a robust CIBIL Score and in boosting a bad one.
Let’s analyze the meaning and features of CIBIL Score and CIBIL Report so know how these factors are different from each other. Read on!
What is a CIBIL Score?
A CIBIL Score (also known as the Credit Score) is a 3 digit number that is assessed by leading banks and NBFCs to determine an individual’s creditworthiness. CIBIL Scores are fetched by customer’s credit related information and loan processing. It is sourced from lenders that are registered with CIBIL, also called credit bureau.
Credit bureaus use many parameters to come at the final CIBIL Score of a customer. The information contained in the CIBIL Score may be of many credit channels owned by a customer such as a repayment history and other aspects.
A CIBIL Score stays in the range of 300-900. A Credit Score that stays above 750 is considered as a good one. Anything that is below that level does not reflect well on a customer’s creditworthiness.
A CIBIL Score is dissimilar from a CIBIL Report in the sense that a CIBIL Score is a numerical derived as a result of processing credit information. On the other hand, a CIBIL Score is a comprehensive document that contains the overall credit information. It also means that Credit Scores are only numbers that signify a customer’s creditworthiness. On the other hand, credit reports are documents that contain detailed information about customers’ credit history.
What is The CIBIL Report?
A CIBIL Report which is also known as a Credit Information Report (CIR) is a record of an individual’s loan and credit related details.
A Credit Report not only holds financial information but even personal details such as PAN Card, address, name, gender and more. CIBIL Report is a significant document to track all credit related data of customers.
The Credit Report gets generated by CIBIL via customer credit data received from many lending institutions and banks. The information then gets formatted and processed to make way for a detailed credit report for each customer. Have a look at the information that is contained in a CIBIL Report:
- Personal details such as name, age and address
- Employment information and income details
- Loan details – all loan types – active loans and repayment activities
- Loan Defaults
- Loan settlements
- Credit card details of all cards taken by you
- Credit card defaults
- Cancellation of credit cards
- Queries made by a customer via multiple loan providers
- Credit Score – the significant aspect of your Credit Report
Loan seekers and active customers should avail Credit Reports once every year to correct any mistakes to boost it and increase their chances of loan approvals.
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