Difference between Credit Score and CIBIL Score
Navigating loan applications and credit management can be confusing. Understanding the terms “credit score” and “CIBIL score” is crucial.
Credit Score: A 3-digit number (300–900) summarizing your credit history, impacting loan approvals and interest rates.
CIBIL Score: A specific credit score provided by CIBIL, a prominent Indian credit bureau. While other bureaus exist, CIBIL scores are often preferred by lenders.
Both scores aim to:
Assess creditworthiness: Help lenders decide whether to approve or deny loan applications.
Determine interest rates: Favorable scores (usually >700) can lead to better loan terms and lower rates.
Knowing the difference empowers you to:
Monitor your credit health: Regularly check your score (from any bureau) to identify areas for improvement.
Improve your score: Take steps like responsible credit management to increase your score and access better loan opportunities.
By understanding these distinctions, you can navigate your financial journey with greater confidence.
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