CIBIL, Experian & Equifax – Understanding India’s Credit Score Authorities

A good credit score is like a financial passport — it decides whether you get a loan, credit card, or even a job in some sectors. In India, three main credit bureaus dominate the credit ecosystem: CIBIL, Experian, and Equifax.

Each one collects and analyzes financial data to give you a credit score, usually between 300 and 900, based on your credit history and repayment behavior.

At AMA Legal Solutions, we help individuals understand and improve their credit scores, especially those affected by loan defaults, settlements, or legal notices from banks and NBFCs.

This guide explains:

• What CIBIL, Experian, and Equifax are

• How your credit score is calculated

• Differences between the three agencies

• Legal implications of a poor credit score

• How to dispute errors and improve your score

1. What Are Credit Bureaus in India?

Credit bureaus are RBI-licensed organizations that collect data from banks, NBFCs, and lenders. They maintain your credit report, which includes:

• Loan history (home, personal, education, business)

• Credit card usage and payments

• Defaults, settlements, or write-offs

• Enquiries for new loans/credit cards

• Legal actions, if any

The three major bureaus in India are:

2. CIBIL – India’s Oldest and Most Popular Credit Bureau

CIBIL, now known as TransUnion CIBIL, is the most widely recognized credit bureau in India.

Key Features:

• Credit score ranges from 300 to 900

• 750+ is considered excellent

• Used by 90% of banks before approving loans

• Updates once every 30–45 days

• Owned by TransUnion, a global data analytics company

Common Terms on CIBIL Report:

• DPD (Days Past Due): Shows if you missed a payment

• Suit Filed / Written-Off: Legal or non-performing status

• Settled: Paid less than full amount due

📌 Tip: If your CIBIL report shows “settled,” banks may reject future loans. We help clients legally improve these entries.

👉 Learn how to fix CIBIL errors or improve score

3. Experian – Globally Renowned, RBI Approved

Experian is another RBI-approved credit bureau operating in India since 2010.

Highlights:

• Same 300–900 score scale as CIBIL

• Less commonly used by Indian lenders but growing in usage

• Easier to access reports directly for free (once a year)

• Preferred by some NBFCs and fintech lenders

Why Experian Scores Differ:

Different bureaus use different algorithms and update frequencies, so your score might be 770 in Experian and 720 in CIBIL.

📌 Don’t panic. Focus on clean payment history and credit limit management, not just one score.

4. Equifax – Trusted by Banks for Credit Monitoring

Equifax started India operations around the same time as Experian and is widely used by banks for monitoring credit performance.

Unique Features:

• Also offers credit risk solutions to institutions

• Scores reflect credit utilization trends

• Offers microfinance and rural credit tracking

5. Why Do Credit Scores Differ Between CIBIL, Experian & Equifax?

You may notice your scores across all three credit bureaus vary slightly. Here's why:

Other Reasons for Difference:

• Not all banks report to all bureaus

• Timing of data updates

• Some lenders prefer one bureau over the other

📌 Advice: Keep your score above 750 in any one bureau and ensure no legal/settled entries appear.

6. What Lowers Your Credit Score?

• Late or missed payments

• Credit card over-limit usage

• Multiple loan/credit card applications

• Loan settlements or write-offs

• Legal notices or court action

• High credit utilization ratio

📉 A score below 600 can:

• Get your loan or credit card rejected

• Affect job background checks

• Result in higher interest rates

7. Legal Implications of Poor Credit Score

Many clients come to us after loan default, settlement, or legal notice. A poor score affects your financial credibility in several ways:

(a) Loan Rejection

Banks instantly reject applications with scores under 650.

(b) Legal Notices

If your score is low due to unpaid debts, banks may initiate legal action under civil recovery laws.

(c) Job Impact

Top BFSI companies screen CIBIL scores during background checks.

📌 At AMA Legal Solutions, we help:

• Draft replies to legal notices

• Negotiate settlements with a clean “closed” status

• Guide clients on how to rebuild credit legally

👉 Resolve your credit report issues with legal help

8. How to Check Your CIBIL, Experian & Equifax Score Online (Free)

All three bureaus allow one free report per year. Here’s how:

• CIBIL: www.cibil.com/freecibilscore

• Experian: www.experian.in/consumer

• Equifax: www.equifax.co.in

Things to Check:

• Your name and PAN are correct

• Loans/cards are correctly listed

• No “settled” or “written off” without your knowledge

• No unknown credit inquiries

📌 Dispute any errors immediately — you can do this yourself or with our legal assistance.

9. How to Improve Your Credit Score Legally

We’ve helped hundreds of clients go from 500 to 750+ in 6–12 months. Here's how:

✅ Step 1: Get Your Credit Report from All 3 Bureaus

Cross-check for errors, old entries, duplicate loans.

✅ Step 2: Pay Off Overdues

Negotiate a legal settlement with NOC and ensure it’s reported as “closed,” not “settled.”

✅ Step 3: Build Positive History

Take a small secured credit card or loan and repay on time.

✅ Step 4: Maintain Credit Mix

Don’t just use credit cards. Use a mix of loan types.

📞 Need help in strategy or settlement drafting?
👉 www.amalegalsolutions.com/contact

10. Why Clients Trust AMA Legal Solutions for Credit Score Matters

We are a law firm based in Sector 57, Gurugram, offering pan-India legal assistance on credit and loan issues. Our clients trust us because:

• We help dispute incorrect CIBIL entries

• We negotiate with banks on legal grounds

• We prevent harassment and protect your rights

• We offer CIBIL improvement consulting

• We ensure every settlement is closed with an NOC letter

Client Testimonial

“My CIBIL score was 540 due to a wrongly marked ‘settled’ HDFC credit card. AMA Legal Solutions helped me get it corrected, and I’m now at 768 within 10 months.”
– Simran K., Delhi

Conclusion: Credit Score = Financial Freedom

Whether you’re applying for a loan, job, or business funding, your credit score tells your story. CIBIL, Experian, and Equifax may differ slightly, but all three matter when it comes to approval or rejection.

At AMA Legal Solutions, we don’t just help you understand your score — we legally empower you to take control of it.

📞 Book a free consultation with our legal experts now:
👉 www.amalegalsolutions.com/contact