Wondering which banks use Experian in India? This article will discuss all about it.
Which Banks Use Experian in India?
As per the Reserve Bank of India, all banks, NBFCs, and lending companies in the country are required to be members of 4 credit rating bureaus. The rating bureaus are TransUnion CIBIL, Experian, CRIF High Mark, and Equifax.
All lending institutions in India are allowed to use any of these 4 credit scores alone, or in combination, as per their preference and the type of credit applied for. Thus, the Experian credit score can be used by any bank you want to take a loan from.
Experian Credit Rating Range
The Experian credit score is among the top two credit scores used in India, along with the TransUnion CIBIL score. Experian is a credit information company that has been operating worldwide for the past 125 years.
In India, it acquired the license to operate in 2010, is recognized by the Securities and Exchange Board of India (SEBI), and is authorized by the Reserve Bank of India to collect information from lending companies.
You can check your Experian score for free from their website. This credit score is ranked from 300-900, and a higher score is considered better. Here is a table that tells you what the scores translate to in terms of creditworthiness -
| Experian Score Range | Creditworthiness |
|---|
750 - 900 | Excellent |
700 - 749 | Good |
650 - 699 | Fair |
600 - 649 | Doubtful |
Below 600 | Immediate Action Needed |
Why do Banks Use Credit Score?
Banks always check credit scores before approving a loan. Here are some reasons why -
- Gauges the risk of lending money to a borrower
- Aids in deciding the terms of the loan including interest rate, tenure, and amount
- Helps understand the creditworthiness of a borrower
- Deciding if a borrower can be given an unsecured loan
- Reduces the risk of fraud
What Other Credit Scores are Popular in India?
There are 3 credit rating bureaus, apart from Experian, which are most popular in India. They are discussed below -
TransUnion CIBIL
Established in 2000, TransUnion CIBIL is one of the most popular credit bureaus in India. They maintain credit information of over 1,000 million individuals and businesses. They have over 5,000 members that include banks, financial institutions, and NBFCs.
Their rating ranges from 300-900, and a rating of 700 and above is generally considered good.
Equifax
Equifax is a global data and analytics company that has been functioning as a credit rating bureau since 2010 in India. It has a presence in 24 countries all over the world.
Their scores range from 300-850, and a score of 670 and above is accepted for most credit products.
CRIF High Mark
Established in 2007, CRIF High Mark was approved by RBI to function as a credit rating company in India in 2010. It caters to over 10,500 banks and financial institutions, and 600 insurance companies.
Their scores range from 300-900, and a score above 700 is generally considered good.
Conclusion
As all banks have been mandated by RBI to be a member of 4 credit bureaus, they all may use any of the top scores.Most lending institutions in Indiaconsider the Experian score along with the TransUnion CIBIL score.
Factors like the preference of the bank, type of credit, and age of credit all play a role in choosing a credit bureau. Since each credit bureau uses its own algorithm and calculations, credit scores may vary depending on the bureau you choose.
FAQs
While some banks prefer a specific credit bureau, others utilize multiple bureaus to establish a comprehensive assessment of an applicant's credit profile. Capital One is notorious for pulling credit from all three bureaus, while American Express and Chase largely rely on Experian for most of their credit decisions.
Is Experian score valid in India? ›
Conclusion. As all banks have been mandated by RBI to be a member of 4 credit bureaus, they all may use any of the top scores. Most lending institutions in India consider the Experian score along with the TransUnion CIBIL score.
Do banks consider Experian credit scores? ›
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.
Does Experian operate in India? ›
About us. At Experian, we believe data has the power to transform lives and societies for the better. Experian has two companies in India: Experian Credit Information Company of India Pvt. Limited (ECICIL) and Experian Services India Private Limited (ESIPL).
Do banks use Experian or FICO? ›
Today, many mortgage lenders use classic FICO scoring models for mortgage applications. FICO created slightly different scoring models for each credit bureau—Experian, TransUnion and Equifax—and they are named: FICO® Score 2, or Experian/Fair Isaac Risk Model v2.
Do any lenders use Experian? ›
When you are applying for a mortgage to buy a home, lenders will typically look at all of your credit history reports from the three major credit bureaus – Experian, Equifax, and TransUnion. In most cases, mortgage lenders will look at your FICO score.
Is Experian approved by RBI? ›
Experian Credit Information Company of India Private Limited (“ECICI”) is a Credit Information Company registered with the Reserve Bank of India (RBI).
Which is more reliable, CIBIL or Experian? ›
Most lending institutions consider both scores while approving your loan. One of the major advantages CIBIL has is that it has data since 2000, and Experian was established only in 2010. Most banks consider the CIBIL score over the Experian so, its popularity is another advantage of the CIBIL score.
Which credit score is most trusted in India? ›
1. TransUnion CIBIL
- It is the oldest and most popular in India today. ...
- Its scoring system ranges from 300 to 900, with 900 being the highest and 300 being the minimum CIBIL score.
- It offers businesses a company credit report and a CIBIL rank.
While most major banks and financial institutions do report to the three major credit reporting agencies (Experian, TransUnion and Equifax), the law does not require them to do so.
The Credit Information Bureau (India) Limited (CIBIL) is the most prominent among the four credit information companies licensed by the Reserve Bank of India. The CIBIL score, ranging from 300 to 900, is widely used in India and is maintained by CIBIL Limited, a part of the American multinational group TransUnion.
Which banks use Equifax in India? ›
ECIS is a joint venture between Equifax Inc and seven Indian financial institutions namely, Bank of Baroda, State Bank of India, Kotak Mahindra Prime Ltd, Bank of India, Sundaram Finance Limited, Union Bank of India and Religare Finvest Limited.
What is Experian score in India? ›
Credit Ranges:
specifies a range of 300-850, CIBIL specifies the same at 300-900. As per Experian, a score of 700 and above is considered good. A score above 800 points is excellent. However, the majority have credit score between 600-750.
Can US credit score be used in India? ›
If you plan to pack up and move to another country, here's one thing you can't take with you: your credit score. U.S. credit scores reflect the creditworthiness of U.S. residents. Other countries have their own systems to judge whether borrowers are likely to pay off their debts.
Does Experian work outside the US? ›
Experian provides comprehensive insight into your international customers and vendors, both prospects and existing, that is accurate, up-to-date, easily accessible and highly actionable.
Does Chase only pull from Experian? ›
Based on anecdotal information, Chase generally uses credit data from Experian. However, Chase may opt to review your Equifax or TransUnion credit reports instead depending on which state you live in. That said, Chase reports account information to all three credit bureaus.
Does Wells Fargo check Experian? ›
Banks usually decline to advertise internal methodologies for determining creditworthiness, but Wells Fargo confirms it pulls reports from all three major credit bureaus. A representative with the bank also confirmed the financial institution reports credit activity to all three major consumer reporting agencies.
What banks pull from all 3 credit bureaus? ›
Discover reports authorized users to all three of the major credit bureaus (Experian, Equifax and TransUnion).
