Wondering which banks use Experian in India? This article will discuss all about it.
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.
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 |
Banks always check credit scores before approving a loan. Here are some reasons why -
There are 3 credit rating bureaus, apart from Experian, which are most popular in India. They are discussed below -
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 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.
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.
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.
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.
Both CIBIL and Experian are extensively used by Indian lending institutions and have their own pros and cons. As CIBIL was established in 2000 and Experian in 2010, if your credit history started before 2010, CIBIL would be a better option for you.
The HDFC bank uses the CIBIL score first. They may additionally choose to check the Experian score.
All 4 top credit bureaus, TransUnion CIBIL, Experian, Equifax, and CRIF High Mark are approved by RBI to operate in India.
An Experian score above 700 is considered good in India.
Yes, Experian and CIBIL are two separate entities that generate credit scores of individuals and companies.
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