APN News

  • Monday, September, 2020| Today's Market | Current Time: 02:23:15
  • Cibil VS Experian Credit Score- Which Has More Weight?

    Published on September 23, 2020

    Loans and credit cards help fulfil various needs. But before you apply for new debt, make sure to know your credit score in advance to get an idea of whether or not you deserve the credit. Two of the most prolific credit information Bureaus in India are CIBIL and Experian. Both these bureaus provide credit scores to individuals having serviced the debt earlier or are servicing the same. Both these CIBIL score and Experian score reports are required for you to get a loan successfully, this means that you first need to understand which score weights the other.

    While getting a loan, the lender will run a background check on you; They will look through your credit history, income, credit score and once verified only then you would be able to get the loan amount you applied for. They will check on you and make sure that you are eligible for the loan amount that you have used for. The lender checks your credit report, which gets reflected in your credit score. So the better the credit score you have, the better options you can avail. Let’s compare both CIBIL and Experian here.

    • TransUnion CIBIL

    Founded in the year 2000, TransUnion CIBIL is India’s first and most well-recognised credit bureau. CIBIL members in India include all central banks, financial institutions, housing finance companies and NBFCs. It collects and maintains credit information of more than 1000 million individuals and commercial entities.

    Using credit information collected across its three divisions-

    • Consumer Bureau
    • Commercial Bureau
    • Micro Finance Institution Bureau

    CIBIL generates Credit Information Reports (CIR) and CIBIL Scores for individuals and CIBIL Commercial Reports and CIBIL Ranks for commercial enterprises.

    Experian

    • Experian

    In 2010, Experian became the first credit bureau to receive a license under the new Credit Information Companies (Regulation) Act (CICRA) 2005. Experian India offers its own Experian credit report and score for use by both individuals and companies. It provides information, marketing services and analytical tools to individuals and commercial enterprises to make informed credit decisions.

    What’s Common Between CIBIL and Experian Score?

    Both CIBIL and Experian provide scores in the range of 300-900. Anything above 700 is viewed well by the lenders who often approve the case of those having such scores. CIBIL scores above 750 are considered excellent and can most likely result in loans at attractive interest rates and top-selling credit cards with a maximum credit limit.

    CIBIL or Experian Score

    When it comes to reliability CIBIL and Experian have their weight, the fact that CIBIL has more edge over Experian because 90% of the banks and the financial institutions in India have held their management based on the CIBIL reporting system. On the other hand, Experian is followed in only 10% of them, so it is entirely invalid here as an option. In India, your CIBIL score will have more weight on the loan that you want from your bank. The lending institution or the bank will check your CIBIL score than the Experian score because that is what matters to them even though some banks that are tied with the Experian score here do suspend and ask for your CIBIL score as well.

    So you can primarily understand how crucial it is to have an updated CIBIL score and always in the perfect check for you to avail of loans like a personal loan, two-wheeler loan or a home loan. At the very best, you can do a credit score check with the help of various services available online. Just make sure that the services are genuine and you are not submitting your details to a fraud site.

    There is a different type of credits which can be obtained during the time of taking them. For example, there is a secured and unsecured kind of recognition, which are commonly used by the customers. Since most of the banks do follow the norm of checking your CIBIL score, you must have a proper one for yourself. For unsecured debt, you need to have a credit score of about 750. On the other side, you can also apply for the best travel and personal loans with that amount of credit score that you have. You can also apply for a personal loan using the personal loan app by Finserv MARKETS.

    Loading...