On applying for a loan, the person’s credit score and CIBIL score are definitely seen. This shows the bank or financial institution about your financial condition.
Bank loan
While taking a house, property or car, people often take a loan from the bank because it has to pay more amount. It is difficult to pay such a large sum of money at the same time, so many people take home loans or car loans. But when giving a loan to a bank or financial company, the lender definitely looks at its credit score or CIBIL score. Through this, the complete financial status of the applicant is ascertained. So what is the difference between these two terms and why is it important when giving loans, let us know.
Difference between credit score and CIBIL report
A credit score or CIBIL report is a term that is used at the time of loan. Credit score is used to track the financial condition of the person paying the loan. If a person pays the installment of another loan taken earlier on time, then his credit score is considered to be good. At the same time, the CIBIL report CIBIL is of three digits. In this, points have been decided on the basis of credit score. It is between 300 and 900. The closer your credit score is to 900, the greater the chances of getting a loan easily. Any score over 750 is a good CIBIL score, while a score around 300 is considered bad. In such a situation, your loan application may get rejected.
How to check your own credit score
To check the credit score, you can take help of CIBIL’s website and other banking service aggregators’ websites. In the options given here, you can check your score by filling in the details. If you want, you can check it by taking a subscription plan of CIBIL’s website. It can also be viewed free of charge, although you can see your current CIBIL report only once in a year with free subscription.
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