Difference Between CIBIL Score and Equifax

A credit score plays a crucial role as it depicts your creditworthiness. It is a 3-digit numerical representation generated by credit agencies. CIBIL and Equifax are among the four credit agencies. Do you know the difference between CIBIL and Equifax? Do the scores from these agencies differ? Which score should you rely on? Let’s find out!

What is Equifax?

Equifax is one of the credit agencies that generates your credit report to evaluate your credit score. It is an American credit information company that operates in 15 countries globally. Equifax offers a detailed report along with an easy-to-understand pictorial representation.

What is CIBIL?

CIBIL (Credit Information Bureau India Limited) is also a credit agency. It is a well-known agency operating exclusively in India. CIBIL provides a comprehensive credit report. A CIBIL score is a numerical representation of an individual's creditworthiness, which ranges from 300 to 900. 

ALSO READ :- Everything You Need to Know About CIBIL Score

Key Difference Between CIBIL and Equifax 

Check out the following table to learn about the key differences between CIBIL and Equifax:

Points of distinction	CIBIL	Equifax
Established In	2000	2010
Ownership and operation	Indian credit bureau	Global credit bureau
Score range	300-900	300-900
Credit Report	Comprehensive report	Complete report along with pictorial representation
Number of reports allowed	Unlimited	4 per year
Fees	1 Credit Report with credit score costs Rs. 550 Only Credit Report costs Rs. 164	1 credit report with credit score costs Rs. 472 Credit Report costs Rs. 118
Mode of payment	Debit card/credit card payments and internet banking	Demand draft only
Method of generating a report	Easy; just visit the official website.	Requires a complete KYC form with a self-attested residence and identity verification
Market presence	A larger network of clients in the Indian market	Equifax is widely known globally

CIBIL vs Equifax: Which is Better?

Choosing between CIBIL and Equifax depends on your financial needs and preferences. You must also consider the type of credit and credit history. If an agency’s score aligns more with your profile, decide accordingly. You must also check your lender’s preference for a credit agency. It is advisable to check both scores to get a better idea of your creditworthiness. Lenders in India commonly use CIBIL scores as a standard measure of creditworthiness.

To Conclude

While both Equifax and CIBIL provide credit scores and reports, they differ in various parameters, which include global reach, scoring ranges, and data sources. Understanding the difference between CIBIL and Equifax is essential for individuals seeking financial products. The score generated by each credit rating bureau may influence lending decisions and affect an individual’s overall creditworthiness.

Frequently Asked Questions

1.         What is Equifax and CIBIL?
Equifax and CIBIL are two credit bureaus that collect and maintain credit information on individuals, including their credit history, repayment behaviour, and credit scores.

2.         Are Equifax and CIBIL credit scores the same?
No. While both the credit rating bureaus provide credit scores, the scoring models and ranges may differ slightly between Equifax vs. CIBIL. This results in variations in scores for the same individual.

3.    Can I access my credit report from Equifax and CIBIL?
Yes, both Equifax and CIBIL allow individuals to access their credit reports online. You can, therefore, request your credit report from either bureau to review your credit history and score.

4.    Do lenders in India prefer Equifax or CIBIL scores?
Lenders in India commonly use CIBIL scores as a standard measure of creditworthiness. However, some lenders may also consider Equifax scores or other credit bureau scores when evaluating loan applications.

5.    Should I check my Equifax or CIBIL report regularly?
It is advisable to check your credit report regularly from both Equifax and CIBIL to monitor your credit history. This will help you detect any errors or discrepancies and enable you to take corrective actions if needed.

6.    Can errors on my Equifax or CIBIL credit report affect my credit score?
A delay in rectifying the error can negatively impact your credit score. Hence, make sure to regularly monitor your Equifax or CIBIL credit report to resolve any discrepancies as soon as possible.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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