Why do credit score ranges vary among different bureaus such as CIBIL, Equifax and Experian?
credit score is different across credit bureaus such as CIBIL, Equifax and Experian? For instance, what if your CIBIL score is 760 whereas the one on Equifax is 740. Is this possible and if yes, why? Well, credit score ranges can certainly vary, albeit slightly, among different credit bureaus, but they fall within similar ranges. The most common credit scoring model is the FICO score, which is between 300 and 850.
It’s vital to note that there are different versions of credit scores used by various bureaus and lenders. Each bureau may use its own scoring model or variation of a scoring model, which can lead to small discrepancy in the score range. There are a number of factors that contribute to differences in credit scores.
These include the following: data variations, scoring models, data reporting, data accuracy and score range differences. ALSO READ: CIBIL: Financial crisis leaving you fearful? Follow these 7 strategies to protect your credit score For instance, banks may not report credit information relating to repayments to all the credit bureaus, which leads to the difference in score. The bureau which gets the information of repayment will report a higher score and the one which does not have information will report a lower credit score.
CIBIL: CIBIL TransUnion is bureau that primarily uses FICO scores. Therefore, its credit score range aligns with the standard 300 to 850 range. Equifax: Equifax uses the FICO scoring model, so its credit score range typically falls between 300 and 850, mirroring the standard FICO score range.
Experian: Experian also often uses the FICO scoring model but may provide different versions of the score. Its range is typically from 300 to 850. Despite these variations, the underlying
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