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Difference between Credit score and CIBIL score

If you’ve availed a personal loan, one of the requirements that the lender must have asked for is your CIBIL or credit score. 

Your CIBIL score decides the future of your personal loan application. The higher the CIBIL score, the higher the chances of your loan getting approved. However, there may be a chance that your lender has asked you to submit a credit score instead. But what is a credit score and how different is it from a CIBIL score?

To discover the difference between credit score and CIBIL score read on. 

Credit Score

What is a Credit Score?

A credit score is also a three-digit number that is formulated after analysing your credit history. The analysis can be done by a credit rating agency like Equifax, CRIF Highmark, and Experian, apart from CIBIL. 

On analysing your credit history, you are given a score between 300 to 900. Any score over 700 is what lenders are looking for when disbursing a personal loan. 

What is a CIBIL Score?

Many individuals wonder, what is a CIBIL Score? To start with, the full form of CIBIL is Credit Information Bureau (India) Limited. It is one of the four credit rating agencies. They analyse your credit history along with your payment behaviour and give it a rating. A CIBIL Score is a three-digit numeric summary of your financial history. 

This three-digit number is the level of creditworthiness you hold. However, what is a good CIBIL Score? CIBIL score ranges between 300-900. A score of 750 is considered to be extremely good and the chances of you availing a personal loan with this score is high. In the same way, a CIBIL score of less than 550 decreases your chances of availing a personal loan. 

Cibil Score

How to check CIBIL score?

If you are wondering how to check CIBIL score, it is easy. You can check your CIBIL score on CIBIL’s website. You can also get the information through a bank or NBFC.

To check your free CIBIL score, you will need to register yourself on CIBIL

How to check Credit score?

Since a credit score can be given by any one of the four rating agencies, how can an individual check their credit score? 

You can check your credit score through Finnable. All you need to do is download the Finnable personal loan app and check your credit score.

If you are a first time user, you will need to input your details before you get your free credit score.

Importance of CIBIL and Credit score

Now that you know the difference between a CIBIL Score and a Credit Score, is it truly all that important to know your score?

It is very important to know your CIBIL score or credit score. Even if you do not wish to avail a loan at the moment, knowing your credit score makes things easier for you in the future.

Knowing what your CIBIL score is, also gives you time to improve your CIBIL score, especially if your score is less. 

Without a CIBIL or credit score, banks and NBFCs will be hesitant to disburse a loan under your name. 

Your CIBIL score or credit score holds the key to disbursing your loan funds. However, not every NBFC asks for a credit score or CIBIL score. You can avail a instant loan through Finnable with a low or no CIBIL score. 

You will, however, need to tick all the boxes in their eligibility criteria. Eligibility requirements include that you have a stable income and provide your salary slip as proof along with your bank statements. 

The funds from this loan can be used for a number of reasons. Finnable provides loans with attractive interest rates with a loan tenure that can go up to 5 years. 

You can avail a loan without a CIBIL score. However, the advantages of having a CIBIL score outweigh the disadvantages. Check your free credit score via Finnable today.

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