Very often, a credit score becomes an important parameter for individuals only once they’ve started the process of applying for a loan or a credit card. A credit score is often one of the biggest determinants factored in by the lender while deciding whether or not to disburse a loan to an individual.
The most trusted credit score, which denotes an individual’s creditworthiness, relied upon in India is the CIBIL score. TransUnion CIBIL, one of the four credit rating agencies operating in India, generates individuals’ CIBIL scores by taking into account a range of different factors.
Even to avail a personal loan, the CIBIL score is an important determinant that the lender takes into account. To avail a personal loan from Bajaj MARKETS, your credit score should preferably be above 700 or more. This loan can be availed from prestigious lenders at Bajaj MARKETS, at interest rates as low as 10.49% and repaid over a flexible tenure ranging from 1 to 5 years.
Even as you set about to learn your CIBIL score while looking for a loan, it is important to know the differences in CIBIL score and report. While your CIBIL score is a 3-digit number, your CIBIL report is a significantly longer document.
To generate the CIBIL score, TransUnion CIBIL gathers data about the individual from banks and other non-banking financial companies (NBFCs) from where the individual may have borrowed credit. The amount of credit they have borrowed, the amount of debt they have, their debt-to-income ratio, and their repayment history and record are the most common factors assessed in order for the organisation to calculate the individual’s CIBIL score.
It is important to note that a CIBIL score and report are only generated after six months of credit activity by an individual. Many people might not have CIBIL scores or reports if they have never before applied for credit, either in the form of a loan or a credit card.
There are several differences in CIBIL score and report and it is important to understand them before you begin your loan application process. Read below to learn the differences between the CIBIL score and a full-length CIBIL report.
Amount of Detail: The major difference in CIBIL score and report is the amount of detail each contains. The CIBIL score is a 3-digit score that is calculated based on several parameters. The score is often enough for lenders to determine the creditworthiness of a borrower, since it is calculated post reviewing a range of factors. The CIBIL report, however, is the historic and ongoing record of the data related to an individual and the credit they have availed.
Functions: While the CIBIL score gives a brief glimpse into an individual’s creditworthiness, the CIBIL report is significantly more detailed. Not only is the CIBIL report useful for lenders to assess the creditworthiness of a potential borrower, but it can also be used to understand the applicant’s credit history in detail. For instance, lenders can check the amount of credit that a borrower has already availed to assess their debt-to-income ratio from the CIBIL report.
Type of Detail: The CIBIL score is a three-digit number ranging between 300 to 900. The major difference in the CIBIL score and report is that the CIBIL report contains more qualitative data. Read on below to learn the different kinds of data contained within a CIBIL report.
Personal Information: The CIBIL report contains the personal details pertaining to an individual, including their name, gender, date of birth, and identification numbers, such as their voter ID, PAN, and passport number.
Contact Information: The CIBIL report also contains information on how to contact the individual, including their mobile number, address, etc.
Employment Information: Whether a person has always been steadily employed or whether they have changed jobs too frequently is also considered a good factor for assessing their creditworthiness. As a result, employment information is a completely different section in the CIBIL report.
Account Information: This section offers insight into the credit availed by the borrower, the lenders from whom they have borrowed the credit, the type of credit availed, account numbers, date opened, details of ownership, last payment date, amount of credit availed, current overdue, etc. This section also provides a month-on-month record of payments made by the individual in the previous three years.
Enquiry Information: Enquiry information refers to the record of the number of times an individual has sought credit. This information is recorded for every kind of enquiry made by the borrower for credit, including loans and credit cards. Each time an applicant applies for a loan or credit card, this enquiry information is recorded, regardless of whether they receive the credit or not. This is why it’s best to assess your lenders and requirements carefully before making a single enquiry for credit.
There are several differences in CIBIL score and report. However, the most important distinction lies in the amount of detail covered by both. While the CIBIL score is a 3-digit number, the CIBIL report can end up being a voluminous record of data regarding an individual’s credit history.
There are several factors that determine the CIBIL score and report and it is as easy to improve your CIBIL score as it is to apply for a loan from Bajaj MARKETS. Through Bajaj MARKETS, you can avail a personal loan of up to Rs. 50 lakhs and repay it over a flexible tenure. This loan, available at interest rates as low as 10.49%, offers a range of benefits and features.