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What is the difference between CIBIL Score and CIBIL Report?

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Meaning

Both CIBIL Score and CIBIL Report are dependent on your credit history. Your CIBIL Report is a detailed document that shows your credit history. It includes your personal information, contact information, employment details, loans accounts, enquiry information, and credit card details. Meanwhile your Credit Score is a 3-digit numeric summarised representation of your credit and payment history. Both are based on the principle that your decisions in the past indicate your future as well.

Duration

Your CIBIL Report takes into account your credit history of the past 36 months. Your CIBIL score is derived from your credit actions over the past 24 months. However, these are technical differences. In effect, both are important in getting loans approved and shaping your eligibility.

What’s a good CIBIL Score?

As per the rules, you cannot have a CIBIL Score if there is no credit information of more than 6 months to your name. This is not possible when you are taking credit for the first few times. In that case you are marked NH/NA (No History or Not Available). You can slowly work towards a good credit footprint by maintaining regular payments, a good credit mix, and limiting your credit usage. After 6 months, you will have your CIBIL Score. This score is expressed in numerals ranging from 300 to 600. The higher the number, the better your chances of loan approval. As per research, a score of more than 750 puts you in the high probability bracket. 79% of all loans are awarded to people with credit scores exceeding 750.

What if you don’t have it?

You can have a fair shot even if you have no score or a score lesser than 750. Loan providers also go through your CIBIL Report for a more holistic view of your credit footprint. This includes outstanding dues, payment dates, defaults on loan accounts, number of enquiries on your account, and so on. This information might be enough for them to approve your loan.

How are good scores rewarded?

A good CIBIL Score and an impressive CIBIL Report can not only help you acquire credit easily, but also help you save money. Yes, you read it right. Since the past few years, certain loan providers and banks have begun a reward system for customers with good scores and good records by providing them loans at a discounted rate.

Plus, your CIBIL Report and CIBIL Score are a good way to document your loan details, so that you know exactly where you stand when you want to apply for a new loan.

Conclusion

Whatever your goal might be - your dream home, a car, or child’s education- you should work diligently towards a good CIBIL Report and CIBIL score. These are the two important steps for achieving your financial milestones.

Click here to check your latest CIBIL Score for free.


Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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