By initiating Experian or CIBIL score checks, lenders assess your creditworthiness when you apply for loans. These scores reflect your credit behaviour and repayment history as recorded in your credit report collected by various credit information companies.
However, don’t be surprised if you are assigned a different score by each bureau. While Experian and Credit Information Bureau (India) Limited (CIBIL) consider similar factors, these companies have different scoring methods.
Knowing the difference between Experian and CIBIL scores can help you understand how these scoring methods affect your loan approval process.
Read on to know more.
Both CIBIL and Experian scores are three-digit numeric representations of your creditworthiness, which is based on your credit behaviour. Your CIBIL score is a part of the credit report generated by TransUnion, which is India’s first credit bureau regulated by the RBI.
Experian, too, has been authorised by the RBI under CICRA (Credit Information Companies (Regulation) Act of 2005) to manage credit risk and offer protection to lenders against identity theft.
When you apply for any loan or credit card, financial institutions execute an Experian or CIBIL score check to verify your eligibility and reliability as a borrower.
Now that you understand what they are, here is a quick overview of the key points of difference between Experian and CIBIL scoring systems.
|Presence in India
|Established in 2000
|Established in 2009
|Credit score range
|300 to 900
|300 to 900
|Regulated by RBI
|Authorised by the RBI under Credit Information Companies (Regulation) Act (CICRA) 2005
|Method of data collection
|Banks and financial institutions
|Wide range of sources, such as financial institutions, public records, rental payment history and many others
Following these steps, you can get your free CIBIL score online:
To know your Experian score, here’s how you can generate a free report:
Both credit agencies rely on similar factors that have different weightage in determining your credit score.
Here are the factors that impact your CIBIL score:
|Credit Type and Duration
Now, here are the factors that make up your Experian score:
|Credit Utilisation Ratio
|Length of Credit History
|New Credit Applications
Regardless of whether you opt for an Experian or CIBIL score check to monitor your credit standing, review your scores regularly. Most bureaus and lenders allow you to generate at least one free credit report annually. Any checks post this require you to
pay a nominal fee for one-time reports or an annual subscription service.
By having a good credit score, you can easily apply for a number of financial products, such as a personal loan or a credit card, when needed. However, if you have a low credit score or you are new to credit, don’t fret.
At Fibe, we don’t rely on traditional credit scores to approve your application. Instead, our alternative scoring system allows us to review your loan eligibility on other inclusive factors. Just meet our simple terms to get the Fibe Personal Loan of up to ₹5 lakhs at affordable interest rates.
With minimal paperwork, quick approval and flexible tenure options, Fibe makes borrowing simple! Download the Fibe Personal Loan App or visit our website to apply now.
While both credit bureaus are equally reliable, CIBIL is more widely used in India. Most financial institutions have established ties with CIBIL, as it is the first established credit bureau with over two decades of operations.
Yes, Experian is a trustworthy credit agency that many financial institutions around the world rely on.
While both agencies use similar factors to calculate your credit scores, Experian and CIBIL calculate scores using different scoring models.