Credit is necessary for everyone, whether you are an individual or a business. We require credit to achieve financial goals such as purchasing a home, a car, or setting up a business.
Credit is also essential to business owners because they spend the money they borrow on facilities to grow their company. So we should know the difference between credit score and CIBIL score.
CIBIL score vs credit score:
In India, your credit score is a three-digit overview of your credit history. A credit agency considers your credit history and uses its own model to compute a three-digit score that ranges from 300 to 900. The higher your credit score, the more responsible you have been in the past. In India, most lenders prefer to lend to customers who have a credit score of 700 or higher.
Credit Information Bureau (India) Limited is the full name of the company. One of India's four primary credit agencies is CIBIL. Equifax, CRIF Highmark, and Experian are the other three agencies. The Reserve Bank of India has granted licences to all four credit bureaus (RBI). The CIBIL score is the credit score calculated by CIBIL. The main distinction between CIBIL and credit score is that credit score can be obtained from any of India's four credit bureaus. However, only CIBIL offers a CIBIL score. Any of the four credit bureaus' scores are equally acceptable. Most banks, however, prefer a CIBIL score. Now you know the credit score and CIBIL score difference.
What is the difference between credit score and CIBIL score?
Credit Score |
Cibil Score |
A Credit Score is now a numerical expression of your credit health, similar to your financial report card. |
The CIBIL score is a credit score provided by TransUnion, a credit rating service. |
Before proceeding with any credit application, the lender will analyse your credit score and credit history. |
The TransUnion CIBIL credit score is the standard method of credit scores and the only one that matters when applying for credit. |
As a result, you won't be able to point to a with higher scores because each agency uses different characteristics to generate credit scores, and Cibil TransUnion is one of them. |
While there are a number of credit agencies that produce credit ratings, CIBIL is the one that banks trust the most. |
A Credit Score of 750 or higher is usually adequate to get a loan or debt approved quickly. |
In India, a CIBIL score can vary from 300 to 900, with a score of above 750 considered favourable for loan or credit card acceptance. |
I hope you understood the difference between credit score and CIBIL score.
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What is the difference between credit score and cibil score?
suraj
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2 Year
2022-05-23T08:30:32+00:00 2022-05-23T08:30:33+00:00Comment
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