Understanding credit scores can be a difficult task, not only for beginners but even for experienced individuals. There are multiple agencies responsible for assigning ratings, like CIBIL, Experian, CRIF, etc. It can be difficult to identify which one matters more and why every agency assigns a different score for the same individual. Many people also ignore the importance of these credit rating agencies and the impact they can have on their finances.
This article will help you know in depth about each of these credit rating agencies, how they assign scores, and which one matters more.
Understanding CIBIL Score?
Despite so many options being available, the CIBIL score is one of the oldest and most trusted. There are various credit behaviours in the past that influence these scores and make them trustworthy, such as loan repayment, credit card bills, and credit usage, which are used to calculate this score. Before granting credit applications, the majority of Indian banks and NBFCs look up your CIBIL score.
Features:
- It was founded in 2000 in collaboration with TransUnion (US).
- It is used by top banks and financial institutions, mainly to grant loans.
- It is updated every month based on reports from lenders.
- It is accessible via a variety of platforms (fintech apps and the official website).
Understanding Experian Score?
It is a relatively new credit bureau with an RBI licence, which is a member of the global Experian group. Its sophisticated analytics and easy-to-use reporting have helped it become more well-known despite being recent.
Experian offers a credit score between 300 and 900, just like CIBIL. Experian is preferred by many NBFCs and fintech companies because of its dynamic scoring model and quicker updates.
Features:
- Experian entered the Indian market in 2010.
- It provides free credit reports on its official website.
- Its primary users include digital lenders, fintech platforms, and some credit card issuers.
- It is widely accepted by credit card companies and personal loan aggregators.
Understanding the CRIF Score?
Another RBI-approved credit bureau in India that provides thorough consumer and business credit reports is CRIF High Mark. Its credit score, which also ranges from 300 to 900, is regarded as trustworthy when evaluating risk profiles, particularly in rural lending and microfinance. CRIF is notable for its depth of analysis and abundance of data, especially in Tier 2 and Tier 3 markets.
Features:
- CRIF High Mark was established in 2007 and is part of the global CRIF Group, based in Italy
- It is especially recognised for its work in microfinance and small-ticket loans, including education loans, in semi-urban and rural areas.
- It enables users to check their credit scores for free once a year.
- It is effective in monitoring informal credit and small-ticket loans.
Which One Matters More?
Despite having the same function, which is assessing your creditworthiness, all three credit scores might not always show the same number. This is due to minor variations in their scoring algorithms, data sources, and update schedules.
Let us look at the comparison table to understand better:
| Feature/Criteria | CIBIL | Experian | CRIF High Mark |
| Full Name | TransUnion CIBIL Limited | Experian Credit Information Co. | CRIF High Mark Credit Information |
| Established Year | 2000 | 2010 | 2007 |
| Score Range | 300 – 900 | 300 – 900 | 300 – 900 |
| Preferred By | Major private & public sector banks | Fintechs, NBFCs, credit card issuers | Microfinance institutions, co-op banks |
| Data Update Frequency | Monthly | Monthly | Monthly |
| Free Credit Report Access | Yes (multiple platforms) | Yes (official site & partners) | Yes (once/year via official portal) |
| Scoring Algorithm Focus | Repayment history, utilisation ratio | Credit mix, inquiry history | Micro-loan and rural credit tracking |
| Popularity | Highest in India | Rapidly growing | Niche but reliable |
| Use Case | Loans, credit cards, housing finance | Personal loans, digital lending | Rural and semi-urban credit assessment |
| Partnered Entity | TransUnion (US) | Experian plc (UK) | CRIF (Italy) |
Let’s know the difference in more detail:
1. Understanding Credit Bureaus in India
The following table will help you understand the details of Credit Bureau with respect to CIBIL, Experian, and CRIF scores. It also sheds light on when they were established and what the focus areas are of different institutions.
| Credit Bureau | Established In | Score Range | Preferred By | Frequency of Update |
| CIBIL | 2000 | 300 – 900 | Major Indian Banks | Monthly |
| Experian | 2010 | 300 – 900 | Fintechs, Credit Card Providers | Monthly |
| CRIF High Mark | 2007 | 300 – 900 | Microfinance Institutions | Monthly |
2. Calculation of these scores
Each bureau has a slightly different scoring model, even though they all use similar factors like credit utilisation and repayment history. The same person may receive different scores from different bureaus as a result of these variances.
| Basis | CIBIL | Experian | CRIF High Mark |
| Repayment History | 30% | 35% | 35% |
| Credit Utilisation Ratio | 25% | 30% | 30% |
| Length of Credit History | 25% | 15% | 15% |
| New Credit Enquiries | 10% (comes under other factors) | 10% | 10% |
| Credit Mix (Loan Types) | 10% (comes under other factors) | 10% | 10% |
3. Which Credit Score Is Preferred?
A lender’s preference is determined by their policy; banks usually favour CIBIL, but fintechs might go with Experian or CRIF. The focus depends on the type of loan that the individual wants.
Depending on their internal policies, lenders may use various scores:
- Major banks like HDFC, SBI, ICICI, and Axis prefer CIBIL.
- Digital lending platforms and modern NBFCs trust Experian.
- Small-ticket lenders, microlenders, and rural banks prefer CRIF High Mark.
Bottomline
The conclusion can be drawn that each of these scores is important in its own way. Identifying the one that matters more is difficult as different institution uses different scores. So, it depends on the user to identify their need and decide which one holds more importance in their case. People who want loans from banks may focus on their CIBIL score. While individuals relying on digital lending platforms may focus on Experian.
The main aim is to make the individuals feel responsible for their actions and maintain their financial report card well.
Written by: Tanya Kumari
