Your credit score and history are crucial when applying for a personal loan or a credit card. These scores are direct representations of your financial credibility, that is, how or how likely a lender is to trust you with repaying the loan. Credit scores are determined by consolidating various factors that test your loan repayment capability.
In India, there are several official bodies that give out creditworthiness scores, such as CIBIL and Equifax. These credit bureaus gather financial information from various financial institutions across the country and offer a rating that helps determine a person's creditworthiness based on the information they have about their customers and clients.
When comparing the two major credit bureaus operating in India, Equifax and CIBIL, there may be some differences in their credit scores. It's essential to understand these differences when applying for a loan or credit card.
Equifax is a joint venture between Equifax Inc., USA, and seven leading financial institutions in India. It was established in 2010 and is headquartered in Mumbai.
CIBIL made its debut in the year 2000 and is the leading credit bureau in India.
The user's credit cards, loans, repayment history, and personal identity information from the institutions where they have taken out mortgages or credit cards are all listed in the Equifax report.
To answer the question, “What is a CIBIL score?”, it is based on how well customers have managed their credit, loans, and other obligations.
Equifax charges INR 138 for a credit report, and INR 400 if you also want the credit score and the credit information report. It accepts demand drafts for payment.
On the other side, CIBIL charges INR 500 for a single credit report that includes the CIBIL score check. Additionally, CIBIL accepts payments via net banking, credit card, or debit card.
Equifax offers the following products and services to its customers and members:
CIBIL offers the following products and services to its customers and members
For score calculations, CIBIL gives the score considering the last two years of your data.
Equifax considers the last seven years of your data.
You are free to generate reports for a CIBIL score check whenever you like.
However, Equifax offers you the opportunity to obtain a copy of your credit report four times a year, so you can monitor your financial situation constantly. You are required to pay INR 1,000 to subscribe to Equifax's credit report on an annual basis. Your credit score is available once each quarter.
For Equifax, you can download the website's available dispute resolution form. Before mailing the form to the bureau's address via mail, courier, or speed post, complete it and attach the necessary documents.
For CIBIL, you can fill out and submit the dispute resolution form after downloading it from the CIBIL website. Alternatively, you can raise a dispute concerning your credit report by writing to CIBIL and attaching any necessary supporting materials.
Lenders often review multiple credit reports when assessing an individual's creditworthiness for a loan or credit card application. Both Equifax and CIBIL are widely used credit bureaus in India, and it's essential to view both reports to get a comprehensive understanding of your credit health. Therefore, it's good to check the credit reports from all the major credit bureaus, in case you are looking for financing options like a personal loan.
Based on your creditworthiness, SMFG India Credit offers flexible repayment terms, simple documentation requirements, affordable personal loan interest rates starting from just 11.99%*along with flexible repayment tenures. We have served millions of consumers across India thanks to our customised solutions and transparent processes. If you have a CIBIL score of 750 or more, visit our website to apply for a personal loan online, NOW!
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