When checking your eligibility for a credit card or loan, you may come across terms like ‘CIBIL score’ and ‘credit score’. Oftentimes, these terms are used interchangeably, even though they are different. The CIBIL score and credit score are terms which are closely related and are used to signify your ability to manage your borrowings. So, what is the difference between credit score and CIBIL score?
A CIBIL score is a type of credit score generated by TransUnion CIBIL. It ranges from 300 to 900, with a higher score indicating stronger creditworthiness. The CIBIL score is calculated based on your credit history, repayment patterns, credit utilisation, and existing credit accounts. It is regarded as a crucial metric for assessing your eligibility for any form of credit.
A credit score reflects your credit behaviour and is provided by all 4 credit bureaus in India. It is based on factors like your repayment history, credit utilisation, and recent credit inquiries. Each bureau calculates the score slightly differently. It may vary depending on how they weigh these factors. A higher score indicates better credit health. Lenders use your credit score to evaluate your ability to repay loans and decide the terms they can offer you.
Here are some major points that help highlight the difference between a credit score and CIBIL score:
Criteria |
CIBIL Score |
Credit Score |
Issuer |
Exclusively provided by TransUnion CIBIL |
Offered by various credit bureaus like Experian, Equifax, TransUnion CIBIL, and CRIF High Mark |
Calculation Method |
Calculated using data from banks and financial institutions, with a specific weightage assigned to factors such as repayment history and credit behaviour |
Varies by the bureau, as per their proprietary algorithms and unique data sets |
Importance |
Highly recognised and preferred by most lenders in India for evaluating creditworthiness |
The relevance depends on the lender and the bureau providing the score |
Score Range |
Ranges from 300 to 900 |
Typically ranges from 300 to 850 or 900, depending on the bureau |
Articles on CIBIL
- How To Login On CIBIL Portal
- How To Change Write Off Status
- How To Improve CIBIL Score
- Check CIBIL Score By PAN Card
- CIBIL Score for Personal Loan
- CIBIL Score for Home Loan
- CIBIL Score for Credit Card
- CIBIL Score for Business Loan
- CIBIL Score for Bike Loan
- CIBIL Score For Car Loan
- CIBIL Score For Education Loan
- CIBIL Score For Gold Loan
- How To Rectify Negative Credit Report
- How Name Change Can Affect CIBIL
- How CIBIL Score Repair Agencies Work
- How To Resolve CIBIL Errors
Frequently Asked Questions
Which one is important – CIBIL or credit Score?
Both, the credit score and CIBIL score are important, but their relevance depends on the context. A CIBIL score is specific to TransUnion CIBIL, a credit bureau in India, and is widely used by lenders to evaluate loan applications. A credit score, on the other hand, is a broader term that refers to scores provided by any credit bureau. For Indian borrowers, the CIBIL score is often prioritised by lenders, making it crucial for accessing financial products.
Are CIBIL scores and credit scores the same thing?
No, there is a major difference between CIBIL and credit scores. A credit score is a generic term representing a numerical measure of creditworthiness, calculated by different credit bureaus based on their methodologies. A CIBIL score is a specific type of credit score generated by TransUnion CIBIL. While all CIBIL scores are credit scores, not all credit scores are CIBIL scores.
Which bureaus provide CIBIL scores and credit scores?
In India, the CIBIL score is provided exclusively by TransUnion CIBIL. Other credit bureaus like Experian, Equifax, and CRIF High Mark also provide credit scores. Each bureau uses its data and algorithms to calculate these scores, but the CIBIL score remains the most widely recognised by lenders.
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