Your CIBIL Report is a detailed record of your credit history consisting of your personal information, contact details, employment information, loan account and credit card information, and enquiry information. On the other hand, your CIBIL Score is a 3-digit numeric summary of your CIBIL Report, reflecting your credit worthiness. This is based on your credit history and payment behavior - an integral part of your profile, especially because your past behavior is taken as an indicator of your future actions.
While your CIBIL Report includes the last 36 months of your credit history, your CIBIL Score is based on the last 24 months of your credit behavior. Despite differences between your CIBIL Score and Report, it is important to note that both have a role to play in the approval of your loan application, and lenders depend on both the CIBIL Score and Report to assess your loan eligibility.
Technically, an individual should have more than six months of credit information to be eligible for a CIBIL Score. However, a new-to-credit consumer may not have enough information or credit history to generate a score. In this case, they may receive an NH/NA (No History or Not Available). Over the course of time, they can build their credit footprint with good credit behavior such as timely repayments, a good credit mix, and staying within their credit utilisation limits. This will eventually lead them to a numeric CIBIL Score between 300 and 900. The closer the score is to 900, the higher are the chances of your loan application getting approved. In fact, 79 percent of loans are sanctioned to consumers with a CIBIL Score greater than 750.
This does not mean that you should lose heart if you are new to credit and don't have a score yet, or if you do not have a score greater than 750. Luckily, lenders may look at your CIBIL Report for a larger view of your credit footprint. This may include checking for the days past due on outstanding payments, red flags on loan accounts or the number of enquiries made on your account - all available in your report. This overview allows them to take a better informed decision when underwriting and approving a loan application.
Moreover, in the last two years, select banks and lenders have started rewarding credit-conscious, high-scoring consumers with preferential pricing loans at discounted rates of interest. Now, not only can a high CIBIL Score and healthy CIBIL Report give you access to credit but it can also pave the way for considerable savings.
If you are keen to make your financial goals a reality, you should work towards a CIBIL Score of 750+ and a healthy CIBIL Report. Monitoring your score and report regularly also helps you verify your personal and loan account details are updated correctly, so that you have access to credit when you need it the most.
Stay credit-ready by monitoring your CIBIL Score & Report.
Disclaimer: The information posted on this blog (Information) is prepared by TransUnion CIBIL Limited (TU CIBIL). This Information is for generic informational purposes only and is meant for consumer education and awareness about credit scores, credit history and credit reporting. The Information posted on the blog does not constitute credit advice and the user will need to consider the same and take independent informed decisions . No part of this Information may be quoted out of context, distorted ,distributed, published and/ or reproduced in any form and manner whatsoever. Consumers are advised that the Credit Information Reports (CIRs) prepared by TU CIBIL are based on collation of information, substantially, provided by credit institutions who are members with TU CIBIL. TU CIBIL is not responsible and /or liable for errors and/or omissions caused by inaccurate or inadequate information submitted to it by credit institutions. TU CIBIL does not guarantee the adequacy or completeness of the Information and/or its suitability for any specific purpose nor is TU CIBIL responsible for any access or reliance on the Information. TU CIBIL expressly disclaims all such liability. Further, this Information is based on the data available with TU CIBIL at the time of publication and therefore may not be up-to-date.