Equifax Credit Score Vs CIBIL Credit Score
Equifax and CIBIL are credit bureaus that receive financial data from different financial institutions across the nation. Based on the data received on the consumers and businesses, they provide a rating that helps to gauge their creditworthiness.
Equifax and CIBIL are two of the four credit information businesses authorised to operate in India. Experian and High Mark are the other two credit information businesses. Credit related activities of consumers are collected and recorded by these organisations. The data collected is then analysed to produce consumer credit scores and credit information reports.
You know how important your credit score and history are if you have ever inquired for a loan or a credit card. Are there any variances in the credit scores supplied by the different bureaus? What should you do if your scores from two separate credit bureaus differ?
Let us dig deeper to find out some more details about Equifax and CIBIL credit score services.
Equifax Credit Score Vs CIBIL Credit Score
Equifax and CIBIL amass the whole financial history of a consumer, including current and previous borrowings, repayments, and credits, into a single report that comprises all of the information. Here’s how these two credit information bureaus differ:
Parameters | Equifax India | CIBIL |
|---|---|---|
Established | 2010 | 2000 |
Credit Score Range | 300-900 | 300-900 |
Products and Services (For Consumers) | Credit Information Report Credit Score Dispute Resolution | Credit Information Report Credit Score Dispute Resolution |
Products and Services (For Members) | Equifax Risk Score Portfolio Review Alerts | Customer Acquisition Portfolio Management Consulting and Analytics |
Cost of Retrieving the Credit Report | Rs. 118 | Rs. 164 |
Number of Credit Reports you can Retrieve | 4 per year | Unlimited |
Cost of Retrieving Credit Report with Credit Score | Rs. 472 | Rs. 550 |
Time Taken to Receive the Credit Report | 1 day via email 7-10 days via post/courier | 7 days via post/courier |
Accepted Payment Mode | Demand Draft | Net Banking, Debit Cards, and Credit Cards |
Dispute Resolution Process | Download the Dispute Resolution Form available on the website. Fill out the form and attach the relevant documents before mailing it to the bureau's address through mail, courier, or speed post. | You can download the dispute resolution form on CIBIL website, fill it and submit. Or, you can raise a dispute about your credit report offline by writing to CIBIL along with supporting documents. |
Equifax and CIBIL credit scores are in the same ballpark range. However, discrepancies in exact scores between the two bureaus for the same consumer may occur, albeit they are unlikely to be substantial. Equifax and CIBIL gather information about you to create your credit report, which is then used to calculate your credit score, that indicates your odds of getting approved for financial products. Due to a bad credit score, you may have been denied a loan, credit card, or mortgage application.
There are steps you can take to repair your credit report if you are having trouble borrowing money because of it. Keep in mind that it takes time to establish a track record of sound financial decisions and, hopefully, boost your credit score.
- Pay your bills on time, ideally with an amount more than the minimum that is due.
- Close any unused credit accounts, as some lenders may consider them adversely.
- If you have no credit history, use a credit builder card to help you improve your credit score over time.
- Examine your credit report for any mistakes. An error could result in your credit application being denied due to a poor credit score.
A credit score is a numerical rating that might increase or decrease based on your personal and financial circumstances. There is no such thing as a universal credit score, despite the fact that some people believe there is. In actuality, different credit rating agencies and lenders will issue you a credit score based on the information they have and their own scoring system and scale. This can make comparing different scores difficult because they will vary based on how they were calculated.
The end purpose of any tool a lender uses to assess your creditworthiness, whether it's a credit rating or various forms of credit scores, is to anticipate how likely you are to repay your loans. Making on-time payments and appropriately using credit in the past can help indicate that you can repay loans in the future.
Your credit report can influence things like receiving car financing, in addition to influencing your eligibility to get financial products like loans and credit cards. Lenders may also consider information in your application, such as your salary, as well as data from previous transactions with you, such as if you have used their products and services before.
Hence, rather than wondering about the scoring models of the different credit information bureaus, work on improving your credit score.