Experian vs CIBIL Score - Key Differences Between Experian and CIBIL (2024)

FAQs

Experian vs CIBIL Score - Key Differences Between Experian and CIBIL? ›

Credit Ranges:

Experian's FICO Score ranges from 300 to 850, while CIBIL's score ranges from 300 to 900. This difference in the range can impact how lenders interpret and use the scores during the lending process.

The credit scores you see when you check a service like Experian may differ from the FICO scores a lender sees when checking your credit. That's because the lender may be using a FICO score based on data from a different credit bureau. It may also be looking at a different FICO scoring method.

A credit report is a statement that has information about your credit activity and current credit situation such as loan paying history and the status of your credit accounts. Your credit scores are calculated based on the information in your credit report.

One of the notable differences between Credit and CIBIL scores is that credit rating can be provided by any of the four credit bureaus. Whereas only TransUnion CIBIL offers your CIBIL score. Lenders usually deem valid credit ratings from any of the four credit bureaus.

The Experian credit score depicts your creditworthiness and repayment history that further helps lenders in deciding on your new credit application's approval or denial.

Lenders don't always report information to all three bureaus, however, which means there are often differences among your credit reports (and the scores based upon them). Because your credit reports can differ, your scores are unlikely to be the same.

While Experian is the largest bureau in the U.S., it's not necessarily more accurate than the other credit bureaus. The credit scores that you receive from each of these bureaus could be the same, depending on which scoring model they use.

Lenders use such a wide variety of credit scores (and versions of scores) that no single score is definitively the most important. The FICO^® Score is used by 90% of top lenders, but there are at least 16 versions of that model in use.

There is no “best” credit bureau—all three bureaus can offer helpful information and tools to help you make financial decisions.

Why do all 3 credit bureaus have different scores? ›

Credit scoring models can weigh certain information in your reports more heavily than other credit score factors. For example, one scoring model may put more emphasis on total credit usage than others. Because there are varied scoring models, you'll likely have different scores from different providers.

More banks and lenders use FICO to make credit decisions than any other scoring or reporting model. Although borrowers can explain negative items in their credit report, the fact remains that having a low FICO Score is a deal breaker with numerous lenders.

Your credit scores may vary according to the credit scoring model used, and may also vary based on which credit bureau furnishes the credit report used for the data. That's because not all lenders and creditors report to all three nationwide credit bureaus. Some may report to only two, one or none at all.

CIBIL offers a detailed credit report. Equifax also offers a detailed report but it also provides a pictorial representation of the credit report which is easier to understand. CIBIL has a larger network of clients and partner banks and financial institutions when compared to Equifax.

TransUnion CIBIL is among the oldest and most reputable Credit Information Companies in India. Nearly all leading organisations are members of the bureau.

CIBIL scores can range anywhere between 300 and 900, with 900 denoting maximum creditworthiness. A CIBIL score of 750 or above in your credit report is ideal. It will aid in qualifying you for personal loans and credit cards.

Experian is a global credit bureau, while CIBIL is India's first credit bureau and operates solely in India. Another difference is that Experian has a credit score range of 300-900, while CIBIL has the same credit score range but is referred to as the CIBIL score.

Banks in India use the TransUnion CIBIL, Experian, Equifax, or the CRIF High Mark score. Out of these, the TransUnion CIBIL score is the one that is used most commonly. All credit rating bureaus generate credit scores and reports which help lenders assess the creditworthiness of borrowers.

Credit Reports and credit scores generated by all four credit information companies are equally valid even though there might be a difference in the credit score generated by each of them. This is because lenders such as banks and financial institutions report the same information to all the credit bureaus.

Is Experian the Most Accurate Credit Score? Credit scores from the three main bureaus (Experian, Equifax, and TransUnion) are considered accurate. The accuracy of the scores depends on the accuracy of the information provided to them by lenders and creditors.