Experian vs CIBIL

Experian vs CIBIL Score | Detailed Guide and Key Differences

May 29, 2023 • 2330 views

There are some crucial distinctions between the CIBIL Score and the Experian Score. If you are seeking a loan or a credit card, understanding these credit scores is essential. In this blog, you will get to know the differences and understand the significance of these scores for borrowers. To get a comparison of Experian vs CIBIL score, keep reading. 

What is a CIBIL Score?

A CIBIL Score also known as the Credit Information Bureau (India) Limited Score, is a three-digit number that represents an individual's creditworthiness. Usually ranging from 300 to 900, lenders utilise these scores to assess if a borrower is reliable or not. This score is influenced by various factors like your credit history, repayment behaviour, credit mix, etc.

Lenders prefer individuals with high scores as they seem less risky. The believe that the loan applicant is an ardent financial planner and can pay their EMIs on time. It increases the chances of loan approvals with better terms.

Also Read: Top 8 Unknown facts about CIBIL Score

What is Experian Score?

Experian, a multinational consumer credit reporting company, 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 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 they apply for a loan.

Experian Scores range from 300 to 900. A higher score means better creditworthiness, increasing the chances of getting loans or credit. Lenders use these scores to evaluate risk and decide on lending. Different credit bureaus may have their scoring methods, causing slight score variations.

Key Differences Between CIBIL and Experian Score

Following are the key differences between CIBIL and Experian scores:

Parameters

CIBIL

Experian

Ownership and Operation

CIBIL (Credit Information Bureau (India) Limited).

Experian (Multinational Credit Reporting Company).

Market Presence

Most well-known and widely used in India.

One of the major credit bureaus alongside CIBIL.

Credit Reporting

Provides credit reports and scores.

Offers credit reports, scores, and credit-related services

Data Collection

Collects credit-related data from various sources.

Gathers credit information from lenders and financial institutions.

Data Coverage  

Covers a significant portion of the Indian credit market.

Has established a comprehensive database of credit information in India.

Accessibility

Credit reports and scores are widely accessible.

Credit reports and scores are accessible to lenders and individuals.

 

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.

What Is a Good Experian and CIBIL Score?

A good Experian and CIBIL 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.

Which Agency Should You Use for Your Credit Score?

You can choose either Experian or CIBIL for your credit score needs as both are valid. 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?

Follow these simple steps to check your CIBIL Score for free 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

Now that you have compared Experian vs CIBIL, it is evident that there are variations in how these credit bureaus calculate and report credit scores. Irrespective of the bureau, make sure that you maintain financial discipline to get a good credit score. If you have a credit above 750, you can apply for loans from Poonawalla Fincorp that are tailored to your needs.

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, 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 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.

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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poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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