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Experian Vs CIBIL: What are the Definition, Meaning & Differences?

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Credit scores are an essential eligibility parameter when applying for a loan or a credit card with a reputed lending institution like Hero FinCorp. Your credit score is a vital indicator of your creditworthiness, and it helps us assess your ability to repay the loan. So you can make an intelligent borrowing decision by evaluating your credit score before applying for any loan.

Two of India's most popular credit information companies that provide credit scores generated for borrowers are Experian and Credit Information Bureau (India) Limited (CIBIL), also known as a credit information bureau licensed by the Reserve Bank. In this article, we will explore the meaning, definition, and key differences between CIBIL and Experian.

What is CIBIL?

CIBIL, a subsidiary of TransUnion CIBIL Limited, is India's first credit bureau, founded in 2000. To calculate your credit score, they consider various factors, such as payment history, credit utilisation, length of credit history, and types of credit accounts used.

What is Experian?

Experian is a multinational credit information company operating in over 40 countries, including India. They collect data from their member institutions, including banks and lenders, to generate credit and calculate Experian credit scores. They compute the scores based on various factors, such as payment history, credit utilisation, length of credit history, and types of credit accounts used.

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Difference Between CIBIL and Experian

The credit scores provided by Experian and CIBIL are equally valid, despite some variability in scores due to differences in their scoring models for calculating credit. Banks and financial institutions are aware of these key differences and take them into account when evaluating a customer's eligibility. Furthermore, all trusted credit bureaus receive identical information because the company licensed by the Reserve Bank mandates that all lenders provide the same information to credit information companies in India. As a result, one bureau cannot have more or less data than the others.

Credit BureauPresence in IndiaCredit Score RangePaymentTime TakenDispute Resolution
CIBILEstablished in 2000Score range is 300–900. 
A CIBIL score above 750 is considered good, while a score closer to the lower end is considered poor.		Rs. 550 for a one-time Credit Score and Report. 
Subscription available (twice or four times a year). 
Payment options: NetBanking, debit card, or cash. 
Credit Report only: Rs. 159 (payable via Demand Draft).		Report sent after document verification – up to 7 days. 
If online authentication is successful, report will be emailed.		Yes. Complaints can be filed online.
ExperianReceived license in 2010Follows a similar scoring range from 300–900.Rs. 138 for Credit Report (payable by DD or NEFT/NEFT-enabled branch). 
Online Credit Report available for Rs. 399.		Online applicants receive report via email in real-time after verification. 
Offline requests may take up to 20 days due to verification of credit reports and related public records by credit information companies.		Yes. Download and fill the Query Application Form, attach authentication documents, and send to the address on the website. 
Helps ensure credit data is accurately updated and supports maintaining or improving your credit score.

Also Read: How Is Your CIBIL Score Calculated

Conclusion

Experian and CIBIL are two of India's most popular credit bureaus. While both bureaus provide credit reports and scores, there are differences in how they calculate credit scores, collect information, and report credit scores to lenders. If you're comparing these bureaus, you might wonder what is the maximum cbiil score and how it impacts your loan eligibility. When choosing between Experian and CIBIL, it is essential to consider your individual needs and circumstances.

Frequently Asked Questions

1. What is Experian?

Experian is a credit reporting agency that provides credit reports, credit scores, and credit monitoring services with a presence in 40+ countries, including India.

2. What is CIBIL?

CIBIL is a credit information company that collects and maintains the credit information of individuals and companies.

3. What is the difference between Experian and CIBIL?

The main difference between Experian and CIBIL is their origin and presence. 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.

4. Which credit bureau is more widely used in India, Experian or CIBIL?

CIBIL is the most widely used credit bureau in India, as it is the first credit bureau established in India and has been in operation for over two decades.

5. Do Experian and CIBIL use the same credit scoring model?

No, Experian and CIBIL have different credit scoring models, which means your credit score may vary between the two bureaus. But both credit bureaus use similar factors to calculate your credit scores, such as payment history, credit utilisation, length of credit history, and types of credit used.

6. Can I request my credit report from both Experian and CIBIL?

Yes, you can request your credit report from both Experian and CIBIL. It's a good idea to review your credit report from both bureaus regularly to ensure that your credit information is accurate and up to date.

7. What is TransUnion CIBIL Score?

The TransUnion CIBIL Score is a three-digit numeric summary of your credit history, ranging from 300 to 900, used by lenders to evaluate your creditworthiness.

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