CIBIL vs Experian: Understanding the Key Differences in Credit Scores

We often get confused between CIBIL score and Experian credit score, whether both these credit bureaus same or are they different. Understanding this difference is essential to having a healthy financial journey. It is essential to understand that these two credit scores indicate your creditworthiness, which is defined by your credit history.

Let's solve this confusion and help you understand the difference between the Experian and CIBIL scores with the help of this blog. Read on!

What is a CIBIL Credit Score?

A CIBIL Score, also known as the Credit Information Bureau (India) Limited Score, is a three-digit number that represents your creditworthiness. CIBIL credit score ranges between 300 and 900. Lenders utilise these scores to assess your creditworthiness. The credit scores generated by CIBIL are influenced by various factors like an individual's credit history, repayment behaviour, credit mix, etc.

Lenders or financial institutions prefer individuals with high scores as they are considered less risky. A higher CIBIL score increases the chances of loan approvals with better terms.

Also Read: Top 8 Unknown facts about CIBIL Score

What is an Experian Score?

Experian credit information company, is a multinational consumer credit reporting company that offers comprehensive credit information services globally, including in India. Its main focus is to provide individuals and businesses with credit-related information, analytics, and decision-making solutions.

The company gathers information from lending institutions, credit card companies, public records, etc. and updates data on credit history, loan payments, and credit use. This information is used to create credit reports and scores, helping lenders assess creditworthiness when you apply for a loan.

Experian Score ranges from 300 to 900. A higher score means better creditworthiness, increasing the chances of getting loans or credit. Lenders use these scores to evaluate credit risk and make a lending decision. Different credit bureaus may have their own scoring methods, including how credit utilisation is factored, causing slight score variations.

What is considered a Good Credit Score in both CIBIL and Experian

A good Experian and CIBIL score, which is a commonly accepted credit score, usually starts from 750. This score indicates a strong credit profile, increasing your chances of approval for loans and credit cards with favourable terms. Keep in mind that higher scores, beyond 750, further enhance your creditworthiness and may lead to more attractive lending offers.

Experian vs CIBIL: What's the Key Difference

The following are the key differences between CIBIL and Experian scores:

Note: The information provided in the table is a summary and may not capture all the nuances of each credit bureau's operations and offerings. It is advisable to refer to the respective credit bureau's official websites for detailed and up-to-date information.

Which Agency Should You Use for Your Credit Score?

You can choose either Experian or CIBIL for your credit score needs, and also check your free credit score, as both are valid. However, before applying for a loan, you must ensure that to understand what bureau your lender refers to.

Though there might be slight score differences due to variations in scoring models, lenders are aware of this and adjust when evaluating eligibility. The Reserve Bank of India ensures that all credit bureaus receive the same information from lenders, preventing any bureau from having more or less data than others.

How Can You Check Your CIBIL Score for Free?

Here are the steps to check your free CIBIL score with Poonawalla Fincorp:

Step 1: Click ‘Get Your CIBIL’ and complete the CIBIL check form by choosing your employment type and gender.

Step 2: Provide essential details like your name, PAN card details, contact information, and address proof.

Step 3: Review and agree to the terms and conditions, then click on the 'Submit' button to proceed.

After a few minutes, you will get your CIBIL score or download a detailed CIBIL report for additional insights.

Also Read:  All About CIBIL Score Range & CIBIL Value

To Conclude

Understanding the difference between CIBIL and Experian credit scores is key to making informed financial decisions. Both serve the same purpose; they evaluate your creditworthiness but operate with slightly different scoring models, methodologies and data sources. Whether you choose to check your score with CIBIL or Experian, both are valid and recognised by lenders across India. To make it simpler, you can check your credit score for free from Poonawalla Fincorp in just a few steps at any time, anywhere.

Frequently Asked Questions

Which credit bureau's scores are more widely used in India, Experian or CIBIL?

In India, CIBIL is the most commonly used credit bureau as it was the first to be established and has been operating for over two decades.

Do Experian and CIBIL have the same credit scoring model?

No, Experian and CIBIL use distinct credit scoring models, potentially resulting in varying credit scores. However, they share similar factors in determining scores, including payment history from member financial institutions, credit utilisation, credit history length, and credit types.

Can I request my credit report from both Experian and CIBIL?

Yes, you can request your credit report from both credit bureaus - Experian and CIBIL. Regularly checking reports from both bureaus ensures the accuracy and currency of your credit information.

What is the other name of Experian?

Experian is also known as Experian Credit Information Services (India) Pvt. Ltd. This is the name under which Experian operates in India, offering credit-related services to individuals and businesses. Experian has a strong presence globally and provides comprehensive credit information, analytics, and decision-making solutions to support lending and risk management processes.

How do CIBIL and Experian differ in data collection?

CIBIL primarily collects credit data from its member institutions, while Experian uses a wider range of sources, including rental payment history and utility bills.

What are the score ranges for CIBIL and Experian?

CIBIL scores range from 300 to 900, while Experian credit scores range from 300 to 900.