WHAT IS THE DIFFERENCE BETWEEN CREDIT SCORE AND CIBIL SCORE?

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WHAT IS THE DIFFERENCE BETWEEN CREDIT SCORE AND
CIBIL SCORE?
If youve ever visited a bank or an NBFC seeking
a loan or to apply for a credit card, then you
must have come across the terms, credit score
and CIBIL score. Often, people use the terms
synonymously with one another. But, thats not a
good practice as there lies a subtle difference.
And, this article will help you understand the
fine line between credit score and CIBIL score.
So, read on

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What is Credit score

• A credit score reflects the creditworthiness of
  potential borrowers. It is calculated after
  taking borrowers credit history, including the
  number of credit accounts, total debt and
  repayment history, into consideration. Also, the
  number of enquires made (applications for a loan
  or a credit card) is considered while calculating
  a credit score.

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Major Credit Bureaus
Whenever a person applies for a loan, lenders
want to be assured regarding the chances of your
repayment to them. To help them know about your
financial background, they turn towards your
credit history. Since banks and NBFCs do not have
the right to keep a record of so many people,
government-appointed credit bureaus maintains
such records that help lenders make these
decisions.
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• What is CIBIL Score?

• The credit score offered by TransUnion CIBIL,
  which is one of the three credit bureaus in India
  that records credit-related activities of all
  companies and individuals, is referred to as
  CIBIL score. 
• You can calculate your credit score
  easily here and escape the trouble of going to a
  bank branch.

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• How does CIBIL work?

• Offering glimpses of a credit profile, the CIBIL
  score is a three-digit numeric summary of a
  consumers credit history. A company or an
  individual is offered a score in the range of
  300-900. Your chances of getting a loan approval
  rise as your CIBIL score inches closer to 900.

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• Maintain a Good CIBIL

• As mentioned above, the credit score that is
  maintained and offered by TransUnion CIBIL is
  called CIBIL Score. Repayment history plays an
  influential role when it comes to calculating
  your credit score. And, any late payment of loan
  EMIs or credit card dues can pull your credit
  score down by 100 or more points.

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Clix Capital Services Pvt. Ltd.

• Address
• 901b, 9th Floor, Two Horizon Centre, DLF Phase V
• Gurgaon, Haryana, India 122002
• Phone Number 1800 200 9898
• Website https//creditscore.clix.capital

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