Credit Score vs CIBIL Score: The first thing loan takers will check is credit and CIBIL score, know what is the difference between them..
While buying a house, property, or car, people often take a loan from the bank because a large amount has to be paid into it. It is difficult to pay such a huge amount at once, hence many people take home loans or car loans. But while giving a loan, the bank or financial company looks at the credit score or CIBIL report of the lender. Through this, the complete financial condition of the applicant is ascertained. So, what is the difference between these two terms and why is it important while giving a loan, let us know.
Difference between credit score and CIBIL report
Credit score or CIBIL report is a term used at the time of loan. A credit score is used to track the financial condition of the person paying the loan. If a person repays the installment of any other loan taken earlier on time, then his credit score is considered good. Whereas CIBIL report CIBIL is of three digits. In this, points have been decided based on credit score. It ranges between 300 to 900. The closer your credit score is to 900, the more the chances of getting a loan easily. Any score above 750 is a good CIBIL score, while a score around 300 is considered bad. In such a situation, your loan application may be rejected.
How to check your credit score yourself
To check your credit score, you can take the help of the CIBIL website and the websites of other banking service aggregators. You can check your score by filling in the details in the option given here. If you want, you can see it by taking a subscription plan to CIBIL website. It can also be viewed for free, although those with free subscriptions can view their current CIBIL report only once a year.
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