Credit scores are a key factor in loan eligibility, as lenders rely on them to evaluate your creditworthiness and repayment ability. Experian and Credit Information Bureau Limited (CIBIL) are two major credit bureaus that provide credit scores. However, there are some differences between them. Read on to know the key difference between Experian and CIBIL scores.
What is an Experian Score?
An Experian score is a 3-digit number that demonstrates your overall credit health. Experian score range between 300 and 900, and a score above 750 is considered ideal. A higher score means better creditworthiness, increasing the chances of getting loans or credit.
What is a CIBIL Score?
A CIBIL score is a three-digit numerical representation of your creditworthiness. It ranges between 300 and 900, and a score above 750 is considered a good score. Various factors contribute to calculating a credit score, such as repayment patterns, credit history, and diversity of credit accounts.
Key Differences Between Experian and CIBIL Score
Following are the key differences between CIBIL and Experian scores:
| Parameters | Experian | CIBIL |
| Recognition | The Securities and Exchange Board of India recognises it. | The Reserve Bank of India licenses it. |
| Ownership and Operation | Experian (Multinational Credit Reporting Company). | CIBIL (Credit Information Bureau (India) Limited). |
| Market Presence | It is one of the major credit bureaus alongside CIBIL. | It is the most well-known and widely used in India. |
| Caters to | CIBIL caters mainly to domestic financial institutions. | Deals with various international financial entities, including India. |
| Credit Reporting | Offers credit reports, scores, and credit-related services | Provides credit reports and scores. |
| Data Sources | Collects credit-related data from alternative sources such as rental payments and utility bills, providing a comprehensive | Gathers credit information from banks and financial institutions that are its members. |
| Data Coverage | Has established a comprehensive database of credit information in India. | Covers a significant portion of the Indian credit market. |
| Accessibility | Credit reports and scores are accessible to lenders and individuals. | Credit reports and scores are widely accessible. |
| Scoring Models | Vantage Score Model | FICO Score Model |
| Weightage Assigned to Factors | Repayment history, credit utilisation, length of credit history, recent credit inquiries and different types of credit accounts | Repayment history and credit utilisation ratio |
Experian vs CIBIL Score: Which is Better?
Experian and CIBIL are two major credit bureaus. However, each serves different requirements. Experian is more global, while CIBIL primarily focuses on the Indian market. Which one is better depends on various factors, such as your location and your lender’s requirements. It may be a good idea to check your credit score from both bureaus to understand how lenders perceive your creditworthiness.
To Conclude
While both Experian and CIBIL provide credit scoring services, they have a few key differences. Experian offers comprehensive reports tailored to specific industries, and CIBIL is India’s most widely used credit bureau. Both use different calculation methods and scoring models. Choosing between Experian and CIBIL depends on factors like your location and preferences.
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