Explaining The Difference Between A CIBIL Score And CIBIL Report
For a layman, CIBIL scores are your final marks; while CIBIL report is the detailed report card. So if you have done a lot of messing up in your credit card payments, borrowing repayments or EMI payments, get ready to see a not-so-impressive CIBIL report. And of course the conclusion of that report would be your CIBIL score which plays an important role every time you apply for loan or a new credit card.
Now the detailed explanation of both, especially for people who are contemplating taking loan from bank for property, car or business –
A CIBIL score is like a Credit score that reflects a person’s creditworthiness owing to his or her history of credit card repayments and loan/EMI repayments. CIBIL score is a three digit number ranging between 300 and 900 determined by your good or bad conduct in context of credit card bill payments and secured and unsecured loans taken by you. A score less than 500 is bad; anything between 500 to 700 needs improvement while more than 700 is considered a good CIBIL score. So if your score is on the lower side, your chances of securing a new loan or new credit card are also dim.
While your CIBIL report is the detailed report showing your credit transactions which lead to this final CIBIL score. It would not be wrong to say that a CIBIL report is a comprehensive report-card showing your overall credit information & reflecting your credit performance on various parameters. CIBIL report is also called Credit Information Report (CIR) simply because it outlines the entire history of a person in context of his or her credit utilization, payments & loan related information. You may find not just financial details but other important facts like PAN Card number, name, address, etc which account for making this report a comprehensive document aiding in loan processing.
And it is not just one bank account’s information rather than the complete transaction data from various banks that gets compiled in this CIBIL report. You may also see employment information highlighting the income details, details about loans taken in the past and the repayment schedule (followed or missed as well), defaults done by you on loans as well as credit cards, credit limit & utilization details for all the credit cards taken by you, credit cards cancelled in the past and delays made in all type of credit repayments.
Now this must have cautioned you that Big brothers (banks) are watching your credit behavior and documenting it as well in the form of this CIBIL report; make sure to rectify your credit repayment and utilization behavior from this very moment. In case you need help to set your CIBIL scores right, keep reading our articles on how it can be done.