Credit Score Vs CIBIL Score

Credit Score and CIBIL are essential factors while applying for either a personal loan or any other. You might have experienced that these score in three digits is always considered before the approval of your loan. Now the essential question emerges that the terms credit score and CIBIL different or the same? However, both terms are considered for the loan approval, revealing the borrowers' transactional history. It analyses the records of past loans, credit card usage, fair repayments etc. If the financial history of the customer is good the credit score will be higher. Whereas a lower score will create difficulties in the approval or it can enhance the interest rate.

Hereafter, let’s understand the difference between the credit score and the CIBIL. 

 Credit Score Vs CIBIL Score

Credit Score

As mentioned previously, the credit score reveals the transactional history of any person, where it provides all the information about the previous debt like current EMIs, loans, repayment and overall debt of the person willing to apply for the loan and other financial services. Their credit score can be provided by any credit information company as there are four credit information companies and these are CIBIL, Equifax, Experian, and CRIF High Mark. And all this credit information can provide the credit score as per their algorithm which emphasizes the previous transactional history as well. So, the credit score can be provided by all these credit bureaus.

CIBIL Score

The CIBIL score also works as same i.e., to provide information about previous transactional history considering the income, expenses, and performance after getting a loan like repayment and all. This is always considered while approving the loan and facilitating the lower interest and affordable tenure.

The CIBIL score is provided by the CIBIL i.e., “Credit Information Bureau India Limited” which is one of the bureau's companies and its credit score is known as CIBIL which works the same as others.

Regulatory Authority for Credit and CIBIL

While discussing the credit and CIBIL and the bureau companies providing the credit and CIBIL score, it is essential to know their domain and the regulatory body which controls these companies. So, all these credit bureaus i.e., CIBIL, Equifax, Experian, and CRIF High Mark are authorized by the Reserve Bank of India and these are regulated under the Credit Information Company (Regulation) Act 2005. Where all these bureau companies are allowed to provide fair credit scores as per the record of a person.

Conclusion

Overall, considering the difference between CIBIL Score and credit score which is almost the same in terms of financial history but different based on its facilitator i.e., the bureau company. So, it is essential to know that in every condition your transactional history and punctuality in repayments always matter to maintain the credit score or CIBIL score, where you must focus on all those parameters that directly affect your credit score and create difficulties in your financial assistance in terms of loan, insurance and many more. So, always keep your credit score higher, by following all the guidance required for the betterment of your score.