4 Types of Credit Ratings and Scores in India You Need To Know About

Updated on: 1 Feb 2024

There are different types of credit ratings and scores assigned by credit bureaus. As a borrower, your history with credit and current loans is summarised into a three-digit credit score. Credit ratings are usually assigned to organisations or companies who take on debt, but the two and often used interchangeably.

Credit information companies assign scores between 300 to 900. This numeric representation of your credit behaviour gives a lender important information about your likelihood of being disciplined about repaying.

Having a higher score improves your chances of getting credit with better terms. With this fact in mind, understanding the various credit scores in India is important.

Types of Credit Scores and Bureaus

To offer different types of credit facilities, banks and NBFCs generate your reports from one of the four credit bureaus in the country. The Reserve Bank of India licenses all these bureaus to collect the required details for generating credit reports and scores.

Despite this functional similarity, you can have a different score based on the bureau you check it from. Let’s understand them better:

TransUnion CIBIL Score

This is the oldest credit bureau in India and one of the most popular too.
Most major banks and financial institutions rely on it to get an insight into a borrower’s repayment history
While you can check your score for free once, to keep track of it you can sign up for a subscription package, which starts from ₹550 for one month.

CIBIL scores and what they mean:

CIBIL Range	Rating
300-499	Poor
500-649	Average
650-749	Good
750-900	Excellent

Equifax Score

This credit information company has been operating in India since 2010.
Its score ranges from 300 to 900.
After you have generated your free annual report and score, you can get a monthly or annual subscription starting at ₹250.

Experian scores and what they mean:

Equifax Range	Rating
300-579	Poor
580-669	Fair
670-739	Good
740-799	Very Good
800-900	Excellent

CRIF HighMark Score

Operating since 2011, CRIF HighMark offers credit reports and scores for not only individual retail consumers but also microfinance borrowers and companies.
Apart from a free annual report, you can get your CRIF score and report for ₹399 a month.

CRIF HighMark credit scores and what they mean:

CRIF HighMark Range	Rating
300-549	Low
550-649	Medium
650-749	High
750-900	Excellent

Experian Score

Experian is a global credit reporting agency that was also licensed by RBI in 2010.
Its score range is the same as the other credit information companies, and you have a better chance of approval with an Experian score of 700 or above.
It also allows you to get a free credit report annually and sign up for memberships for subsequent checks.

Experian credit score and what they mean:

Experian Range	Rating
300-500	Poor
580-669	Fair
670-739	Good
740-799	Very Good
800-900	Excellent

Which Credit Rating Should You Choose?

While all these types of credit ratings and scores are similar, they are based on subtle differences in assessment factors. Common factors that these agencies use to assign your score are:

Repayment history
Length of experience with credit
Debt-to-income ratio
Existing debts
Recent applications for credit
Different types of credit you have experience with

While banks and NBFCs send details to all these bureaus, their algorithms may assign different scores for the same individual. Thus, you may get a very good rating from one bureau and a good rating from another.

In such a case, you should ask your lender which credit score and report they accept. Generally, lenders in India check the TransUnion CIBIL Score when assessing your application.

Since your score affects your loan application easily, keep an eye on it. The easiest way to check your score for free is on Fibe. All you need to do is register, enter basic details and verify your identity to get your credit report and score.

What’s more, you can get an Personal Loan at pocket-friendly interest rates and no prepayment charges too. Download the Fibe Personal Loan App or register on the website to apply.

FAQs on Types Of Credit Scores

Why are there different types of credit scores?

Different types of credit ratings or scores used in India are: