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

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 bureaus that provide credit scores to borrowers are Experian and Credit Information Bureau (India) Limited (CIBIL).
In this article, we will explore the meaning, definition, and differences between Experian and CIBIL.
 
Also Read: How Is Your CIBIL Score Calculated
 

What is CIBIL?

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

What is Experian?

Experian is a multinational credit reporting agency operating in over 40 countries, including India. They collect data from various sources, including lenders, to calculate credit scores. They compute the scores based on various factors, such as payment history, credit utilisation, length of credit history, and types of credit used.
 

 

Which agency should you use?

The credit scores provided by Experian and CIBIL are equally valid, despite some variability in scores due to differences in their individual scoring models. Lenders know these differences and consider them when assessing a customer's eligibility. Furthermore, all bureaus receive identical information because the Reserve Bank of India (RBI) mandates that all lenders provide the same information to credit bureaus. As a result, one bureau cannot have more or less data than the others. 
 

Credit Bureau	Presence in India	Credit Score Range	Payment	Time Taken	Dispute Resolution
CIBIL	Established in 2000	Score range is 300-900.   A CIBIL score above 750 is considered good, while a score closer to the lower end of the scale is considered poor.	Rs. 550 for a one-time Credit Score and Report.   Can opt to buy a subscription twice or four times a year.   Payment by NetBanking, debit card, or cash.   You can buy just your credit report for Rs. 159, to be paid by DD only.	Credit report will be sent after verification of documents – can take up to 7 days.   If online authentication is successful, details will be sent to your email address.	Yes. You can file a complaint online as well.
Experian	Received license in 2010	Follows a similar scoring range from 300-900.	Rs. 138 for Credit Report, can be paid by DD or NEFT or NEFT-enabled branch.   Credit reports can be bought online for Rs. 399.	Online applicants will receive a copy by email in real-time after verification.   Offline requests can take up to 20 days for verification.	Yes, you can download and fill in the Query Application Form with the requisite authentication documents and send it to the address listed on the website.

 

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. When choosing between Experian and CIBIL, it is essential to consider your individual needs and circumstances.
Regardless of which bureau you choose, taking charge of your credit score by monitoring it regularly, paying bills on time, and maintaining a low credit utilisation ratio is essential. These steps can improve your credit score and increase your chances of obtaining loans from Hero FinCorp at favourable terms.

FAQs

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.

What is CIBIL?

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

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.

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.

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.

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.

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.