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Learn about the key distinctions between credit and CIBIL score

As a borrower, you may be confused about credit and CIBIL scores. Here we explain the distinction between them.

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Learn about the key distinctions between credit and CIBIL score

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  1. Learn about the key distinctions between credit and CIBIL score

  2. What does a credit score mean? It is a 3-digit numerical expression ranging from 300 to 900. It informs the lender of your credit behaviour. Credit scores vary between credit rating agencies.

  3. What does the CIBIL score mean? CIBIL score is prepared by TransUnion CIBIL Limited. It, like a credit score, provides information about your credit behaviour.

  4. What does the CIBIL report mean? The CIBIL report includes information on current debts, personal details, and so on.

  5. How does your CIBIL score is determined?

  6. 78% Previous debt repayment record Previous debt defaults or missed EMIs lower your credit score.

  7. Credit utilisation rate If you use more than 30% of your revolving debt, your CIBIL score will suffer.

  8. 1. 2. 1. 2. Hard enquiries Multiple credit applications result in several hard inquiries. It worsens your CIBIL score.

  9. Total approved and applied debts Any unapproved debts in the past will hurt your CIBIL score.

  10. Credit mix Having a debt portfolio mix of unsecured and secured loans improves your CIBIL score.

  11. Length of credit Debt with a longer repayment term and EMIs paid on time raises your CIBIL score.

  12. Both CIBIL and credit score serve the same purpose, with the only difference in the credit rating agency that determines these scores.

  13. Thanks! Would Love to hear from you. Hero Fincorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel : 18001024145 Email : customer.care@herofincorp.com Website : https://www.herofincorp.com/ Know More : A Brief Overview of The Difference Between Credit Score And CIBIL Score

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