CIBIL Score Vs Credit Score: What's The Difference?
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10 March 2024
Terms like credit score, CIBIL score and credit report can be very confusing for loan applicants
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Let's dive deep and understand the difference between the CIBIL score and credit score
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The Credit Information Bureau (India) Limited (CIBIL) is a credit bureau or a credit rating agency which maintains the records of all the credit-related activities of companies as well as individuals
Image: Cibil.com
The agency offers credit scores under the name ‘CIBIL'. It is a three-digit number representing a person's credit background and creditworthiness
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The score can be anywhere between 300 and 900, with a score of at least 700 usually regarded as good
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CIBIL scores are a major factor for lenders when deciding who qualifies for loans, credit cards, and other financial products
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Your credit score is like a financial report card, wrapped up in a handy three-digit number
It considers your credit history, how you pay your bills, how much credit you use, and how long you've had it all going
Lenders use your credit score (think 300 to 850) to predict how likely you are to repay a loan on time
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The higher your score, the lower the risk you appear, potentially unlocking better deals on loans, credit cards, and more!
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