You must have heard about the CIBIL Score. Yes, the same phenomenon which helps you avail a Personal Loan, home loans and many more. If you keep it healthy, it rewards you back with the approval of the loan at a lower rate of interest.

As a result, having some basic knowledge about the CIBIL Score is vital not only for people with credit or loan histories but even for people who are yet to apply for a loan or credit cards.

What is a CIBIL Score?

A CIBIL Score is a 3-digit number, generated by the credit bureau or TransUnion CIBIL and is determined by the past credit information of a person. It ranges between 300 and 900. The closer your score is to ‘900’, the easier it becomes for you to avail all types of credit from lenders.

Let’s know some of the interesting facts about the CIBIL Score

1. CIBIL Score and CIBIL Rank are not identical items

CIBIL Score and CIBIL Rank are provided by the TransUnion only; the only difference is that while the CIBIL Score applies to individuals, the CIBIL Rank is for companies.

The CIBIL Score varies between 300 and 900 and if your credit score is near to 900, your Personal Loan or any other loan approval chances increases. On the other hand, the CIBIL Rank varies between 1 and 10, and if company’s CIBIL Rank is closer to 1, they have a fair chance of getting their loans approved by the creditors.

2. CIBIL Score is not related to savings or investment account information

The CIBIL Score calculation depends on your past credit histories and existing ones. Even the CIBIL CIR (Credit Information Report) includes the synopsis of ongoing and previous credit accounts and linked credit activities. However, CIBIL Score does not include any information related to other accounts such as trading accounts, savings account, current accounts, fixed deposit accounts and investment accounts.

3. The CIBIL Score May Not Be Same With Other Bureaus

The CIBIL Score generated by the TransUnion authority is unique, and it can’t be generated by other credit bureaus such as Experian, CRIF High Mark, and Equifax. It is because the CIBIL authority has a unique CIBIL Score calculation method. Another reason could be the lenders submitted your CIBIL Score to different bureaus on different days.

4. The CIBIL Score May Not Be Same With Other Bureaus

The CIBIL Score generated by the TransUnion authority is unique, and it can’t be generated by other credit bureaus such as Experian, CRIF High Mark, and Equifax. It is because the CIBIL authority has a unique CIBIL Score calculation method. Another reason could be the lenders submitted your CIBIL Score to different bureaus on different days.

The Bottom Line

A CIBIL Score is one of the major aspects that lenders assess while processing your loan application. If you don’t have a healthy score, you can improve it by paying existing loan EMIs and credit card bills on time and by maintaining a sound repayment history.