If you have ever applied for a loan or credit card, then you would have come across the terms “Credit Score” and “CIBIL Score”. Borrowers often wonder if the terms are one and the same.
In this article, we help you understand what each term means and how they vary from each other.
There are 4 credit bureaus operating in India - Transunion CIBIL, Equifax, Experian, and CRIF High Mark. Each bureau assigns a score to individuals depending on several factors such as borrowing history, credit behavior, and more.
This score determines how reliable the borrower is and if the lender could trust him/her to repay the loan within the specified time limit. The score is known as the credit score.
This credit score, ranging from 300 to 900, is a measure of the borrowers’ creditworthiness. Each bureau has its own parameters it employs to assign the right credit score.
TransUnion CIBIL is one of the most prominent credit bureaus operating in India. The credit score the CIBIL bureau assigns to the borrowers is known as the CIBIL score.
Since the CIBIL score is the most asked-for credit score in India, the terms CIBIL score and credit score are used interchangeably.
While CIBIL scores are credit scores, all credit scores need not necessarily be CIBIL scores.
To know more about the differences between CIBIL scores and Credit scores, take a look at this!
The factors that influence your credit score are several. The most important contributing factors are
CIBIL score is the most trusted credit score by lenders. Hence, taking measures to improve your CIBIL score will help you secure a loan with ease. Here is what you can do to effectively improve your score.
It is best to pay off existing loans before applying for a new one. You can also consolidate the loans into one to make it easier for you to repay them.
This low credit score will lead to loan rejection. Hence, take time before applying for a new loan elsewhere.
Each bureau has a unique credit rating system and several different parameters to measure a borrower’s credit worthiness.
This often leads to different credit scores with different bureaus. Before applying for a loan, understand the credit score that your lender considers and take a look at your score before applying for the loan.
Know Your Credit Health Instantly
CIBIL score and credit score are different. CIBIL is one of the four major credit bureaus in the country, and the most prominent credit score. A majority of lenders factor in CIBIL score to approve the loan for a borrower. Regardless, maintaining a good CIBIL score or credit score is crucial to leading a financially healthy life.
Why Is Credit Score Called As CIBIL Score?
Why Are My Credit Score and CIBIL different?
What Is Considered A Good Credit Score?
How Are Credit Scores Determined?
Was this information useful?
