Whenever someone goes for a loan application, there are multiple terms like CIBIL, credit score and credit report, which come across as highly technical terms to the layman and confuse the applicant in the process. CIBIL, Experian, CRIF High Mark and Equifax form India’s four credit rating agencies. As we move along the blog, we will understand CIBIL along with the CIBIL score and CIBIL report.
Trans Union CIBIL
CIBIL, which stands for credit information Bureau India Limited, is a credit information company. The company is now known as TransUnion CIBIL limited. It has a license from the Reserve Bank of India to maintain the records of credit-related activities of companies and individuals.
The company provides data and methods which help understand the financial records of any individual, helping various businesses and credit companies to make informed decisions.
CIBIL score
This is a three-digit number. The number represents the credit history of any individual and reflects the financial profile in terms of loan taken and repayment. This score lies between 300 and 900, and a higher CIBIL score helps the bearer obtain a credit card or a loan easily from a bank or credit company. The score is a summary of the bearer’s credit history and accurately represents the credit information report. Various sources say a civil score of 750 and above is good.
Procedure to check CIBIL score
The process of checking the CIBIL score is absolutely free. However, it is highly recommended to check your CIBIL score, and you can follow the following steps to obtain your civil score.
- Open the CIBIL website on your browser.
- Select get free CIBIL score and report option.
- You can log in if you have an account; otherwise, you need to create an account and verify your details to get your CIBIL score.
- CIBIL also offers subscription plans where you can choose as per your requirement.
There is also an option available for CIBIL Score App.
CIBIL Report
The CIBIL report, also known as the credit information report (CIR), is a complete history of an individual related to credit transactions. The report contains all the information related to loan types availed and the credit institutions taken in use during a certain period. However, the report contains no information on individual savings, FD-like accounts or investment portfolios.
The report generally contains the individual’s personal information, employment details, account details of the loan and contact info, and CIBIL score and credit overview.
The Difference Between A CIBIL Score And A CIBIL Report
There is a vast difference between the score and the report, although the same credit bureau generates both.
On the one hand, the credit score is a very brief representation of a person’s credit history and creditworthiness; on the other hand, the credit report lists the entire history of the person along with the loan details and the institutions which provided those loans.
The credit report also helps in the background check of an individual as they provide the account information, which gives the history of previous loans and their repayment records. Apart from that, they also help the credit institutions by providing employment info which enables the companies to make an informed decision regarding the loan applicants’ monthly and annual income.
Conclusion
It is very important for even a layman to know and understand these basic terms related to the credit world. This knowledge makes your life easier when you need credit, and you desire the process to be hassle-free. Therefore, the bank authorities, along with the credit bureaus, recommend that every person should at least check dear credit score and credit report annually.