Those who are in search of loans or mortgages continuously face some terms like CIBIL score and CIBIL report. Banks and other financial institutions use this terms. Both this terms are related to each other and effects the credit status of a person. Generally, the banks uses the CIBIL reports and CIBIL scores to give loans.

In today’s era, it is easy to regularly check your score online. Thanks to the reliable internet connectivity and excellent Global Tie-ups. Checking this reports regularly is a must to all as it helps in regularly maintaining your credit score.

What is a CIBIL Score?

Banks or other lenders uses the CIBIL score to check the worthiness of an individual. This score is calculated from the credit related information of customer which is given by loan providers registered with CIBIL. CIBIL is a credit bureau which applies various parameters to calculate the credit score of any company. The Parameters can be number of credit channels, history of credit card bills, credit utilisation and details of the number of secured and unsecured loans availed by you.

According to CIBIL, a credit score lies in the range of 300-900 points. The person who has a credit score more than 750 is considered as the most eligible score and anything below that is considered as not worthy. Different rating agencies have set their different scoring patterns and ranges. If the credit score of a customer is is low, his default-risk with the bank is higher. This makes it difficult for the customers to take loan. Even in extreme cases if bank provides the loan to customer, they will charge him a higher interest rate.

It is different from the CIBIL report as the score is just a numerical figure which is taken by processing credit information. On the other hand, CIBIL report is that document which carry all the credit information. This means that the credit report is used to calculate the credit score of any person.

What is a CIBIL Report?

A CIBIL report also referred to as a Credit Information Report (CIR) is a collection or running record of an individual’s credit and loan related information.

A credit report contains not just financial information but also personal details like PAN number, name, address, gender etc. CIBIL report is an important document to track all your credit related data.

A CIBIL report is generated by CIBIL through customer credit data received from various banks and lending entities. This data is then formatted and processed to make a detailed credit report for each customer. CIBIL report contains the following report.

  • Personal information like name, age, address etc.
  • Employment information along with income details
  • Loan details along with types of loans availed in the past, ongoing loans and their subsequent repayment timelines
  • Defaults on loans, if any
  • Loan settlements, if any
  • Credit card details for all cards held by you
  • bill payment defaults, if any
  • Credit card cancellations, if any
  • Number of enquiries made by you through various loan providers
  • Credit score, which is an important part of your credit report

Customers should ideally avail their credit reports once every year to check their records and correct any discrepancies. CIBIL provides the credit report by online loan application. These reports and score are available to customers at a fixed price. Customers analyse this reports for improving their credit scores.

To sum up, credit score is a pointer to your creditworthiness whereas credit report is a detailed report of your credit behaviour over a considerable period of time.

Also, read the related topic: Monitor Your Credit Score