Have you ever heard of the CICs? CICs or Credit Information Companies typically assign a credit score to individual and commercial entities. Most of you will know CIC by its alternate and more popular name – Credit Bureau.

Imagine you want to take a loan and approach a bank for it. The lending bank checks your credit score, which is formulated based on your previous loan payback details like the regularity of payments, and more.

The same rule applies to a business. 

Difference between business credit score & personal credit score

In simple terms, a business credit score is for organisations and businesses. In contrast, a personal credit score is for an individual, calculated based on their financial history. In both cases, transactions and credit usage are the primary factors determining credit score. The history of bill payments, loan and credit card payments, financial transactions, and real estate, all tie into this. 

One interesting difference between the two is that an individual is entitled to avail a free report from each of the four agencies in India once every 12 months. No such benefit is given to businesses.

Credit score helps banks to mitigate risk they beget while providing loans. CICs are licensed by RBI to gather and maintain an individual and company’s credit data. They create a detailed report for each organisation, which will be passed on to banks when required. 

In India, there are four CICs.

  1. TransUnion CIBIL 
  2. Equifax 
  3. Experian 
  4. CRIF Highmark. 

In this post, we will compare and analyse two of the biggest CICs in the world – CIBIL and Experian.

What is Experian?

Experian is one of the popular CICs of India that is recognised by the Securities and Exchange Board of India. Apart from having a global reputation, Experian is a leader in various information services. It provides data and detailed analysis to clients/banks in the form of business credit scores, helping them in their decision-making process. 

Along with business credit score, Experian also offers powerful business tools like Market Switch and Powercurve Origination to help them analyse the score even further. Experian has built a solid reputation in business credit scoring. The reputation comes from 125 years of experience in collecting, analysing, processing, and deploying data to companies to provide financial control and access to financial services. 

Experian is ranked as one of the most innovative credit scoring companies in the world by Forbes Magazine.

Experian’s activities are regulated by the Credit Information Companies (Regulation) Act, 2005. This is true for all the CICs.

What is CIBIL?

CIBIL (Credit Information Bureau India Limited) or TransUnion CIBIL is part of the American multinational group, TransUnion. It is India’s first credit bureau and also the most well-known one.  

All major banks, housing finance companies, financial institutions, and NBFCs are members of CIBIL. It collects and maintains data of more than 32 million business entities.  The Credit Information Report and CIBIL business credit score are generated based on credit information collected by three divisions – Commercial Bureau, Micro Finance Institution Bureau, and Consumer Bureau for commercial enterprises. 

As part of the business credit score, CIBIL provides a CIBIL rank and CIBIL company report for organisations. CIBIL ranks vary between 1 and 10, where 1 is the best rank that a business can achieve.

Key differences between Experian & CIBIL

Both CIBIL and Experian have their own plus points. However, in India, the CIBIL business credit score has the edge over the Experian one because nearly 90% of Indian banks and financial institutions have tied with CIBIL. 

In short, if you own a business in India, then the CIBIL score can do more for your business when you need to get a loan from a bank, than Experian. Interestingly, even the few institutions that are associated with Experian end up asking for CIBIL score. Both CIBIL and Experian have their own methods and algorithms to calculate credit score.  

Advantages of using Experian business credit score

Here are some of the benefits you will experience by opting for an Experian business credit score.

  • Experian has developed an algorithm that can analyse and interpret the collected data in many unique ways to get meaningful insights. This helps banks make more informed decisions
  • It offers a more granular risk view of customers. This helps lending bodies avoid mistakes
  • It also offers credit limit recommendations on all its reportsWith an Experian business credit score, businesses can get a clear picture of their consumers and suppliers.

Advantages of using CIBIL business credit score?

Here are some of the benefits you experience by opting for a CIBIL business credit score.

  • CIBIL is the most popular credit bureau in India, having tie-ups with most organisations. As a result, 9 out of 10 lenders will ask for a CIBIL score over other scores
  • Businesses using CIBIL benefit from their tools that gather a comprehensive understanding of their credit history and financial reputation. CIBIL also keeps all data secured, guarding against identity theft and fraud
  • CIBIL creates information solutions that help businesses grow faster. It also offers reliable and quick information service as per the requirements of a dynamic financial ecosystem
  • Information provided by CIBIL helps businesses make informed decisions to manage risk and segregate spending, using appropriate strategies to boost their profitability
  • Businesses can reinvest in themselves and grow based on insights received from information collected by CIBIL

Over to you

Both Experian and CIBIL credit scores play a vital role for a business to avail loans for its expansion. They are the two best credit information companies in India, and a majority of the organisations in India are tied to either one of these bureaus. 

Did you know? 

Razorpay and RazorpayX offer loans, advances, and corporate credit cards, based on your personal transaction history. We don’t stress on credit score as much as conventional lenders because we hope to achieve similar confidence in businesses through the quantity and quality of customer payments and payouts.


Harshitha is a marketer at the future-forward RazorpayX. She has an insatiable love for travel and culture, rock music, and the work of Neil Gaiman.

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