What is Cibil score? What are different credit scores?
What is Cibil score? Cibil score, which is also called a credit score, is a three-digit number that shows how creditworthy a person is. It is a measure of how likely a person is to pay back the money they borrow based on how they have used credit in the past. The score can be anywhere from 300 to 900. A higher score means you have a better credit history and are more likely to get loans or credit cards.
How do Cibil scores differ from other credit scores?
There are various credit scores often used by credit bureaus and financial institutions worldwide. Here are several of the most widespread credit scores:
- FICO score: In the United States, the FICO score is the most widely used credit score. Fair Isaac Corporation provides this score, which ranges from 300 to 850.
- VantageScore: VantageScore is a credit score that was made by the three biggest credit bureaus in the U.S. (Equifax, Experian, and TransUnion). It can be between 300 and 850.
- TransUnion CIBIL score: TransUnion CIBIL score is the most widely used credit score in India. It is provided by TransUnion CIBIL and ranges from 300 to 900.
- Experian score: Experian score is a credit score that is used in many places around the world, like the UK, Australia, and South Africa. It can be between 0 and 999.
- Equifax credit score: Many countries, like Canada and the UK, use Equifax credit scores. It can be between 280 and 850.
- Credit Karma score: Credit Karma offers a credit score for free to the users in the United States. It ranges from 300 to 850.
From the above mentioned credit scores from different financial institutions, it is clear that all these credit scores give the credibility of a person’s ability to repay some loan or credits. In India to check the credit history of a person Cibil score is used.
There are so many factors that determine the Cibil Score of a person. It is vital to keep in mind that credit scores are not fixed and can fluctuate based on a person’s credit behaviour. If your Cibil Score is not good then you need to improve your Cibil Score to get loans or credit services. LEt me tell you why Cibil Score is important for you. If you are trying to apply for any credit card or any kind of loan then the first thing that will be checked is Cibil Score. If it is low somewhere below 700 things will be difficult for you.
Therefore, maintaining a good credit score requires responsible financial management and routine monitoring for errors or fraudulent activity on one’s credit report. So now Guest Blogging Pro is hoping you got to know about what is cibil score and what are different kind of credit scores that are used worldwide. Keep following Guest Blogging Pro to read more top-trending Business Blogs.