What is a CIBIL credit score and Credit Information Report (CIR)?
A credit score and credit report are different - but related - tools used by lenders to judge the probability of your fulfilling your debt obligations.
A CIBIL credit score is a three digit number between 300 and 900 that indicates your credit-worthiness. It gives potential lenders a quick idea of whether you are a responsible borrower. A credit score of 750 is seen as being a good score. Your credit score is contained in your credit report.
A CIBIL credit report is a multi-page document that details all your credit-related activity with regard to loans and credit cards. It has details of all your current loans, payment history , all loan and credit card applications you have made, any settled or written off accounts, number of hard enquires, and other such credit-related information.
- Time frame
A credit score takes into account more recent activity, spanning your credit history of the past 24 months.
A credit report records your credit history over a time period of years. It can take a long time for a negative mark on your credit history to be erased.
- Method of calculation
A credit score is arrived on the basis of statistical algorithms. It is arrived at after applying a complex mathematical formula to your credit data.
Your credit report notes all your credit-related information and is a comprehensive report, not a number.
- Time taken to improve score/report
A credit score can be improved in months by taking specific payment-related actions.
A credit report contains information spanning years, and it can take a long time to remove the negative marks in a credit report.
Credit Score Credit Report Three digit number Comprehensive document Calculated through statistical analysis No analysis. Detailed record of all credit-related activity Based on relatively recent payment history (24months) Based on credit behaviour spanning years Can be improved in months Can take years to remove negative marks
- You can also apply for a CIBIL CIR without the credit score. Applying for a just a CIR without score is cheaper than applying for both together.