Finance

Difference Between CIBIL Score And CIBIL Report

There might be times when an individual is confused between CIBIL Score and CIBIL Report. An individual’s CIBIL Report is an elaborate record of his/her credit history, which includes an individual’s contact details, personal information, employment information, credit card information, inquiry information, and loan account. Whereas, CIBIL Score is a three-digit number summarizing an individual’s CIBIL Report that reflects his /her creditworthiness. This is dependent on the individual’s payment behavior and credit history – an integral part of his/her profile, mainly because the past behavior of the individual is taken as an indicator of his/her future actions. 

A customer has full leverage to avail the free credit report from their end.

An informed customer can be defined as a smart investor. With the expanding rate of globalization, people can keep a sef track and smoothen their lives. Having an analysis of your credit score and credit report online can be very helpful. 

The CIBIL Report of an individual includes the last 36 months of his/her credit history; his/her CIBIL Score is dependent on the previous 24 months of the individual’s credit behavior. Both of them, CIBIL Score as well as CIBIL Report, play a crucial role in the process of a loan application, and lenders are dependent on both The CIBIL Report and Score to assess the individual’s loan eligibility. 

Technically, the individual needs to have more than six months of credit information so that he/she can be eligible for a CIBIL Score. But, a new customer might not have enough credit history or information to generate a score. In such a situation, the individual may receive an NA/NH (Not Available or No History). As the Score becomes closer to 900, the chances of the approval of the loan application become higher. 79% of loans have been sanctioned to people who had a CIBIL Score above 750.

This doesn’t mean to lose hope if one is new to credit or doesn’t have many scores or if the Score is not above 750. Sometimes, the lenders might look at an individual’s CIBIL Report for a larger view of his/her credit footprint. This might include several inquiries made on the account, red flags on loan accounts, or checking for the days past due on outstanding payments – all available in the Report. While underwriting and approving a loan, an overview helps the lender to make better and informed decisions. 

Moreover, some of the lenders and banks have started rewarding high scoring, credit conscious consumers with preferential pricing loans at the discounted interest rate. In this way, a healthy CIBIL Score and Report not only gives access to credit but also facilitates savings.

An individual should work toward a CIBIL Score of 750 so that the individual can achieve the financial plans and make it a reality. This Score also contributes towards a healthy CIBIL Report. The monitoring of the Score by the individual should be done regularly so that he/she can verify the loan account and personal details, which are updated correctly. This helps the individual to have access to the credit when they need it the most. 

There are various companies like Experian, Equifax, CRIF, and CIBIL which record the credit score. In most cases, the Score will be the same. However, there can be a slightest of variation in other cases. 

Summary

CIBIL Score and CIBIL Report can sometimes prove to be quite confusing to the individuals. A CIBIL report is considered to be an extensive record of an individual’s credit history that also contains personal information, contact details, loan account, and inquiry information. CIBIL Score, on the other hand, is a three-digit number that summarizes the individual’s CIBIL Report, which undoubtedly reflects the creditworthiness of the person. This is based on the individual’s credit history as well as his/her payment behavior. One of the significant differences between the two arises in the time duration. CIBIL Score is dependent on the last 24 months, and CIBIL Report includes the person’s previous 36 months. Apart from the differences, both CIBIL Score, as well as Report play an essential role in the loan application process. CIBIL Score should be maintained by individuals so that they can achieve their financial goals. A CIBIL score 0f 750 or above is considered as suitable for CIBIL Report. This is the reason why an individual should regularly update and maintain their loan account details. Various financial institutions and lenders also offer rewards to customers who have a high score. This helps the customers to become more credit conscious. 

Moreover, users must make a note that apart from credit score and credit report, various other parameters can be taken into account at the time of sanctioning of the loan. 

There are often many times where people frequently neglect or keep it a low priority. 

But, making timely payments will make you useful in planning and managing the things. The best way to overcome your procrastination is by marking down the due dates on the calendars. 

You can set a goal to improve and make your financial life better. 

You can thereby smooth a journey and be stress-free. At the end of the day, you will feel you have more negotiating power in your hands. Also, with an excellent report, the lender can offer you a loan with a low-interest rate. 

Having shown good results, you can positively use your bragging power. 

Also, the limit of Score can increase slowly from 600 to 700 to 900. Try to maintain an average score of about 700. The little steps taken by you can help to reach a higher ladder. Provided all the prerequisites are followed carefully, you can reach your perfect credit score. 

Also, both the Score and Report are equally essential and correlated with one another. 

A score is a part of the Report. Banks look at both scores and reports before drawing out the final conclusion. Also, in some cases, people can make use of a cibil score calculator. The information gathered from the online Score is entirely accurate, authentic, and credible. 

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