{"id":4519,"date":"2023-06-20T11:27:30","date_gmt":"2023-06-20T05:57:30","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=4519"},"modified":"2023-06-20T14:47:01","modified_gmt":"2023-06-20T09:17:01","slug":"credit-score-experian-vs-cibil","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/","title":{"rendered":"Experian &#038; CIBIL Business Credit Score: A Detailed Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Have you ever heard of the CICs?<\/span><b>\u00a0<\/b><span style=\"font-weight: 400;\">CICs or Credit Information Companies typically assign credit scores to individual and commercial entities. Most of you will know CIC by its alternate and more popular name &#8211; <\/span><i><span style=\"font-weight: 400;\">Credit Bureau<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">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. <\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">The same rule applies to a business.\u00a0<\/span><\/p>\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ecef5aa55f3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ecef5aa55f3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#What-is-a-Credit-Score\" >What is a Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#What-is-Credit-Score-Range-and-What-Does-it-Mean\" >What is Credit Score Range and What Does it Mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#How-to-Check-Credit-Score\" >How to Check Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#What-are-the-types-of-Credit-Scores\" >What are the types of Credit Scores?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#Advantages-and-Disadvantages-of-Experian-CIBIL\" >Advantages and Disadvantages of Experian &amp; CIBIL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#What-are-the-Factors-that-are-Considered-for-Calculating-Credit-Score\" >What are the Factors that are Considered for Calculating Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#How-is-Credit-Score-Calculated\" >How is Credit Score Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#Why-is-it-Important-to-Maintain-a-Good-Credit-Score\" >Why is it Important to Maintain a Good Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#How-can-Credit-Scores-be-Improved\" >How can Credit Scores be Improved?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#Difference-between-Credit-Report-and-Credit-Score\" >Difference between Credit Report and Credit Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#Importance-of-Credit-Reports-for-Companies-and-Businesses\" >Importance of Credit Reports for Companies and Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/credit-score-experian-vs-cibil\/#Did-you-know\" >Did you know?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-a-Credit-Score\"><\/span>What is a Credit Score?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"3v85c-8-0\">A<\/span><span data-offset-key=\"3v85c-9-0\"> credit<\/span><span data-offset-key=\"3v85c-10-0\"> score<\/span><span data-offset-key=\"3v85c-11-0\"> is<\/span><span data-offset-key=\"3v85c-12-0\"> a<\/span><span data-offset-key=\"3v85c-13-0\"> numerical<\/span><span data-offset-key=\"3v85c-14-0\"> expression<\/span><span data-offset-key=\"3v85c-15-0\"> based<\/span><span data-offset-key=\"3v85c-16-0\"> on<\/span><span data-offset-key=\"3v85c-17-0\"> a<\/span><span data-offset-key=\"3v85c-18-0\"> statistical<\/span><span data-offset-key=\"3v85c-19-0\"> analysis<\/span><span data-offset-key=\"3v85c-20-0\"> of<\/span><span data-offset-key=\"3v85c-21-0\"> a<\/span><span data-offset-key=\"3v85c-22-0\"> person<\/span><span data-offset-key=\"3v85c-23-0\">&#8216;s<\/span><span data-offset-key=\"3v85c-24-0\"> credit<\/span><span data-offset-key=\"3v85c-25-0\"> files<\/span><span data-offset-key=\"3v85c-26-0\">,<\/span><span data-offset-key=\"3v85c-27-0\"> to<\/span><span data-offset-key=\"3v85c-28-0\"> represent<\/span><span data-offset-key=\"3v85c-29-0\"> the<\/span><span data-offset-key=\"3v85c-30-0\"> credit<\/span><span data-offset-key=\"3v85c-31-0\">worthiness<\/span><span data-offset-key=\"3v85c-32-0\"> of<\/span><span data-offset-key=\"3v85c-33-0\"> an<\/span><span data-offset-key=\"3v85c-34-0\"> individual<\/span><span data-offset-key=\"3v85c-35-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"3v85c-36-0\">It<\/span><span data-offset-key=\"3v85c-37-0\"> is<\/span><span data-offset-key=\"3v85c-38-0\"> used<\/span><span data-offset-key=\"3v85c-39-0\"> by<\/span><span data-offset-key=\"3v85c-40-0\"> lenders<\/span><span data-offset-key=\"3v85c-41-0\"> to<\/span><span data-offset-key=\"3v85c-42-0\"> determine<\/span><span data-offset-key=\"3v85c-43-0\"> the<\/span><span data-offset-key=\"3v85c-44-0\"> likelihood<\/span><span data-offset-key=\"3v85c-45-0\"> that<\/span><span data-offset-key=\"3v85c-46-0\"> an<\/span><span data-offset-key=\"3v85c-47-0\"> individual<\/span><span data-offset-key=\"3v85c-48-0\"> will<\/span><span data-offset-key=\"3v85c-49-0\"> repay<\/span><span data-offset-key=\"3v85c-50-0\"> a<\/span><span data-offset-key=\"3v85c-51-0\"> loan<\/span><span data-offset-key=\"3v85c-52-0\"> on<\/span><span data-offset-key=\"3v85c-53-0\"> time<\/span><span data-offset-key=\"3v85c-54-0\">.<\/span><span data-offset-key=\"3v85c-55-0\"> Credit<\/span><span data-offset-key=\"3v85c-56-0\"> scores<\/span><span data-offset-key=\"3v85c-57-0\"> range<\/span><span data-offset-key=\"3v85c-58-0\"> from<\/span><span data-offset-key=\"3v85c-59-0\"> 300<\/span><span data-offset-key=\"3v85c-60-0\"> to<\/span><span data-offset-key=\"3v85c-61-0\"> 900<\/span><span data-offset-key=\"3v85c-62-0\">,<\/span><span data-offset-key=\"3v85c-63-0\"> with<\/span><span data-offset-key=\"3v85c-64-0\"> higher<\/span><span data-offset-key=\"3v85c-65-0\"> scores<\/span><span data-offset-key=\"3v85c-66-0\"> indicating<\/span><span data-offset-key=\"3v85c-67-0\"> a<\/span><span data-offset-key=\"3v85c-68-0\"> better<\/span><span data-offset-key=\"3v85c-69-0\"> credit<\/span><span data-offset-key=\"3v85c-70-0\"> history<\/span><span data-offset-key=\"3v85c-71-0\">.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"What-is-Credit-Score-Range-and-What-Does-it-Mean\"><\/span>What is Credit Score Range and What Does it Mean?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"3vh2h-9-0\">Credit<\/span><span data-offset-key=\"3vh2h-10-0\"> scores<\/span><span data-offset-key=\"3vh2h-11-0\"> typically<\/span><span data-offset-key=\"3vh2h-12-0\"> range<\/span><span data-offset-key=\"3vh2h-13-0\"> from<\/span><span data-offset-key=\"3vh2h-14-0\"> 300<\/span><span data-offset-key=\"3vh2h-15-0\"> to<\/span><span data-offset-key=\"3vh2h-16-0\"> 900<\/span><span data-offset-key=\"3vh2h-17-0\">.<\/span><span data-offset-key=\"3vh2h-18-0\"> A<\/span><span data-offset-key=\"3vh2h-19-0\"> higher<\/span><span data-offset-key=\"3vh2h-20-0\"> score<\/span><span data-offset-key=\"3vh2h-21-0\"> indicates<\/span><span data-offset-key=\"3vh2h-22-0\"> a<\/span><span data-offset-key=\"3vh2h-23-0\"> better<\/span><span data-offset-key=\"3vh2h-24-0\"> credit<\/span><span data-offset-key=\"3vh2h-25-0\"> history<\/span><span data-offset-key=\"3vh2h-26-0\"> and<\/span><span data-offset-key=\"3vh2h-27-0\"> a<\/span><span data-offset-key=\"3vh2h-28-0\"> lower<\/span><span data-offset-key=\"3vh2h-29-0\"> score<\/span><span data-offset-key=\"3vh2h-30-0\"> indicates<\/span><span data-offset-key=\"3vh2h-31-0\"> a<\/span><span data-offset-key=\"3vh2h-32-0\"> weaker<\/span><span data-offset-key=\"3vh2h-33-0\"> one<\/span><span data-offset-key=\"3vh2h-34-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"3vh2h-37-0\">\u27a1\ufe0fA<\/span><span data-offset-key=\"3vh2h-38-0\"> score<\/span><span data-offset-key=\"3vh2h-39-0\"> of<\/span><span data-offset-key=\"3vh2h-40-0\"> 350<\/span><span data-offset-key=\"3vh2h-41-0\">&#8211;<\/span><span data-offset-key=\"3vh2h-42-0\">549<\/span><span data-offset-key=\"3vh2h-43-0\"> is<\/span><span data-offset-key=\"3vh2h-44-0\"> considered<\/span><span data-offset-key=\"3vh2h-45-0\"> very<\/span><span data-offset-key=\"3vh2h-46-0\"> poor<\/span><span data-offset-key=\"3vh2h-47-0\"> and<\/span><span data-offset-key=\"3vh2h-48-0\"> means<\/span><span data-offset-key=\"3vh2h-49-0\"> you<\/span><span data-offset-key=\"3vh2h-50-0\"> are<\/span><span data-offset-key=\"3vh2h-51-0\"> considered<\/span> <span data-offset-key=\"3vh2h-53-0\">high<\/span><span data-offset-key=\"3vh2h-54-0\"> risk<\/span><span data-offset-key=\"3vh2h-55-0\"> for<\/span><span data-offset-key=\"3vh2h-56-0\"> lenders<\/span><span data-offset-key=\"3vh2h-57-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"3vh2h-61-0\">\u27a1\ufe0fA<\/span><span data-offset-key=\"3vh2h-62-0\"> score<\/span><span data-offset-key=\"3vh2h-63-0\"> of<\/span><span data-offset-key=\"3vh2h-64-0\"> 550<\/span><span data-offset-key=\"3vh2h-65-0\">&#8211;<\/span><span data-offset-key=\"3vh2h-66-0\">649<\/span><span data-offset-key=\"3vh2h-67-0\"> is<\/span><span data-offset-key=\"3vh2h-68-0\"> considered<\/span><span data-offset-key=\"3vh2h-69-0\"> fair<\/span><span data-offset-key=\"3vh2h-70-0\"> and<\/span><span data-offset-key=\"3vh2h-71-0\"> means<\/span><span data-offset-key=\"3vh2h-72-0\"> you<\/span><span data-offset-key=\"3vh2h-73-0\"> may<\/span><span data-offset-key=\"3vh2h-74-0\"> be<\/span><span data-offset-key=\"3vh2h-75-0\"> able<\/span><span data-offset-key=\"3vh2h-76-0\"> to<\/span><span data-offset-key=\"3vh2h-77-0\"> qualify<\/span><span data-offset-key=\"3vh2h-78-0\"> for<\/span><span data-offset-key=\"3vh2h-79-0\"> some<\/span><span data-offset-key=\"3vh2h-80-0\"> loans<\/span><span data-offset-key=\"3vh2h-81-0\">,<\/span><span data-offset-key=\"3vh2h-82-0\"> but<\/span><span data-offset-key=\"3vh2h-83-0\"> you<\/span><span data-offset-key=\"3vh2h-84-0\"> may<\/span><span data-offset-key=\"3vh2h-85-0\"> have<\/span><span data-offset-key=\"3vh2h-86-0\"> to<\/span><span data-offset-key=\"3vh2h-87-0\"> pay<\/span><span data-offset-key=\"3vh2h-88-0\"> higher<\/span><span data-offset-key=\"3vh2h-89-0\"> interest<\/span><span data-offset-key=\"3vh2h-90-0\"> rates<\/span><span data-offset-key=\"3vh2h-91-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"3vh2h-95-0\">\u27a1\ufe0fA<\/span><span data-offset-key=\"3vh2h-96-0\"> score<\/span><span data-offset-key=\"3vh2h-97-0\"> of<\/span><span data-offset-key=\"3vh2h-98-0\"> 650<\/span><span data-offset-key=\"3vh2h-99-0\">&#8211;<\/span><span data-offset-key=\"3vh2h-100-0\">74<\/span><span data-offset-key=\"3vh2h-101-0\">9<\/span><span data-offset-key=\"3vh2h-102-0\"> is<\/span><span data-offset-key=\"3vh2h-103-0\"> considered<\/span><span data-offset-key=\"3vh2h-104-0\"> good<\/span><span data-offset-key=\"3vh2h-105-0\"> and<\/span><span data-offset-key=\"3vh2h-106-0\"> means<\/span><span data-offset-key=\"3vh2h-107-0\"> you<\/span><span data-offset-key=\"3vh2h-108-0\"> are<\/span><span data-offset-key=\"3vh2h-109-0\"> likely<\/span><span data-offset-key=\"3vh2h-110-0\"> to<\/span><span data-offset-key=\"3vh2h-111-0\"> qualify<\/span><span data-offset-key=\"3vh2h-112-0\"> for<\/span><span data-offset-key=\"3vh2h-113-0\"> most<\/span><span data-offset-key=\"3vh2h-114-0\"> loans<\/span><span data-offset-key=\"3vh2h-115-0\"> and<\/span><span data-offset-key=\"3vh2h-116-0\"> credit<\/span><span data-offset-key=\"3vh2h-117-0\"> cards<\/span><span data-offset-key=\"3vh2h-118-0\"> with<\/span><span data-offset-key=\"3vh2h-119-0\"> a<\/span><span data-offset-key=\"3vh2h-120-0\"> lower<\/span><span data-offset-key=\"3vh2h-121-0\"> interest<\/span><span data-offset-key=\"3vh2h-122-0\"> rate<\/span><span data-offset-key=\"3vh2h-123-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"3vh2h-126-0\">\u27a1\ufe0fA<\/span><span data-offset-key=\"3vh2h-127-0\"> score<\/span><span data-offset-key=\"3vh2h-128-0\"> of<\/span><span data-offset-key=\"3vh2h-129-0\"> 75<\/span><span data-offset-key=\"3vh2h-130-0\">0<\/span><span data-offset-key=\"3vh2h-131-0\">-900<\/span><span data-offset-key=\"3vh2h-133-0\">\u00a0is<\/span><span data-offset-key=\"3vh2h-134-0\"> considered<\/span><span data-offset-key=\"3vh2h-135-0\"> very<\/span><span data-offset-key=\"3vh2h-136-0\"> good<\/span><span data-offset-key=\"3vh2h-137-0\"> and<\/span><span data-offset-key=\"3vh2h-138-0\"> means<\/span><span data-offset-key=\"3vh2h-139-0\"> you<\/span><span data-offset-key=\"3vh2h-140-0\"> are<\/span><span data-offset-key=\"3vh2h-141-0\"> likely<\/span><span data-offset-key=\"3vh2h-142-0\"> to<\/span><span data-offset-key=\"3vh2h-143-0\"> qualify<\/span><span data-offset-key=\"3vh2h-144-0\"> for<\/span><span data-offset-key=\"3vh2h-145-0\"> most<\/span><span data-offset-key=\"3vh2h-146-0\"> loans<\/span><span data-offset-key=\"3vh2h-147-0\"> and<\/span><span data-offset-key=\"3vh2h-148-0\"> credit<\/span><span data-offset-key=\"3vh2h-149-0\"> cards<\/span><span data-offset-key=\"3vh2h-150-0\"> with<\/span><span data-offset-key=\"3vh2h-151-0\"> a<\/span><span data-offset-key=\"3vh2h-152-0\"> lower<\/span><span data-offset-key=\"3vh2h-153-0\"> interest<\/span><span data-offset-key=\"3vh2h-154-0\"> rate<\/span><span data-offset-key=\"3vh2h-155-0\">.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"How-to-Check-Credit-Score\"><\/span>How to Check Credit Score?<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"e952d-12-0\">You<\/span><span data-offset-key=\"e952d-13-0\"> can<\/span><span data-offset-key=\"e952d-14-0\"> check<\/span><span data-offset-key=\"e952d-15-0\"> your<\/span><span data-offset-key=\"e952d-16-0\"> credit<\/span><span data-offset-key=\"e952d-17-0\"> score<\/span><span data-offset-key=\"e952d-18-0\"> in <\/span><span data-offset-key=\"e952d-20-0\">by<\/span><span data-offset-key=\"e952d-21-0\"> signing<\/span><span data-offset-key=\"e952d-22-0\"> up<\/span><span data-offset-key=\"e952d-23-0\"> for<\/span><span data-offset-key=\"e952d-24-0\"> a<\/span><span data-offset-key=\"e952d-25-0\"> free<\/span><span data-offset-key=\"e952d-26-0\"> credit<\/span><span data-offset-key=\"e952d-27-0\"> report<\/span><span data-offset-key=\"e952d-28-0\"> from<\/span><span data-offset-key=\"e952d-29-0\"> either<\/span><span data-offset-key=\"e952d-30-0\"> of<\/span><span data-offset-key=\"e952d-31-0\"> the<\/span><span data-offset-key=\"e952d-32-0\"> two<\/span><span data-offset-key=\"e952d-33-0\"> major<\/span><span data-offset-key=\"e952d-34-0\"> credit<\/span><span data-offset-key=\"e952d-35-0\"> reporting<\/span><span data-offset-key=\"e952d-36-0\"> b<\/span><span data-offset-key=\"e952d-37-0\">ure<\/span><span data-offset-key=\"e952d-38-0\">aus<\/span><span data-offset-key=\"e952d-39-0\"> in<\/span><span data-offset-key=\"e952d-40-0\"> India<\/span><span data-offset-key=\"e952d-41-0\">,<\/span><a href=\"https:\/\/www.cibil.com\/\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"e952d-42-0\"> CI<\/span><span data-offset-key=\"e952d-43-0\">BIL<\/span><\/a><span data-offset-key=\"e952d-44-0\"> and<\/span><a href=\"https:\/\/www.equifax.com\/\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"e952d-45-0\"> Equ<\/span><span data-offset-key=\"e952d-46-0\">ifax<\/span><\/a><span data-offset-key=\"e952d-47-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"e952d-48-0\">To<\/span><span data-offset-key=\"e952d-49-0\"> sign<\/span><span data-offset-key=\"e952d-50-0\"> up<\/span><span data-offset-key=\"e952d-51-0\">,<\/span><span data-offset-key=\"e952d-52-0\"> you<\/span><span data-offset-key=\"e952d-53-0\"> will<\/span><span data-offset-key=\"e952d-54-0\"> need<\/span><span data-offset-key=\"e952d-55-0\"> to<\/span><span data-offset-key=\"e952d-56-0\"> provide<\/span><span data-offset-key=\"e952d-57-0\"> personal<\/span><span data-offset-key=\"e952d-58-0\"> information<\/span><span data-offset-key=\"e952d-59-0\"> such<\/span><span data-offset-key=\"e952d-60-0\"> as<\/span><span data-offset-key=\"e952d-61-0\"> your<\/span><span data-offset-key=\"e952d-62-0\"> name<\/span><span data-offset-key=\"e952d-63-0\">,<\/span><span data-offset-key=\"e952d-64-0\"> date<\/span><span data-offset-key=\"e952d-65-0\"> of<\/span><span data-offset-key=\"e952d-66-0\"> birth<\/span><span data-offset-key=\"e952d-67-0\">,<\/span><span data-offset-key=\"e952d-68-0\"> address<\/span><span data-offset-key=\"e952d-69-0\">,<\/span><span data-offset-key=\"e952d-70-0\"> and<\/span><span data-offset-key=\"e952d-71-0\"> PAN<\/span><span data-offset-key=\"e952d-72-0\"> number<\/span><span data-offset-key=\"e952d-73-0\">.<\/span><span data-offset-key=\"e952d-74-0\"> Once<\/span><span data-offset-key=\"e952d-75-0\"> you<\/span><span data-offset-key=\"e952d-76-0\"> have<\/span><span data-offset-key=\"e952d-77-0\"> signed<\/span><span data-offset-key=\"e952d-78-0\"> up<\/span><span data-offset-key=\"e952d-79-0\">,<\/span><span data-offset-key=\"e952d-80-0\"> you<\/span><span data-offset-key=\"e952d-81-0\"> will<\/span><span data-offset-key=\"e952d-82-0\"> be<\/span><span data-offset-key=\"e952d-83-0\"> able<\/span><span data-offset-key=\"e952d-84-0\"> to<\/span><span data-offset-key=\"e952d-85-0\"> view<\/span><span data-offset-key=\"e952d-86-0\"> your<\/span><span data-offset-key=\"e952d-87-0\"> credit<\/span><span data-offset-key=\"e952d-88-0\"> score<\/span><span data-offset-key=\"e952d-89-0\">,<\/span><span data-offset-key=\"e952d-90-0\"> along<\/span><span data-offset-key=\"e952d-91-0\"> with<\/span><span data-offset-key=\"e952d-92-0\"> other<\/span><span data-offset-key=\"e952d-93-0\"> details<\/span><span data-offset-key=\"e952d-94-0\"> such<\/span><span data-offset-key=\"e952d-95-0\"> as<\/span><span data-offset-key=\"e952d-96-0\"> your<\/span><span data-offset-key=\"e952d-97-0\"> credit<\/span><span data-offset-key=\"e952d-98-0\"> history<\/span><span data-offset-key=\"e952d-99-0\"> and<\/span><span data-offset-key=\"e952d-100-0\"> any<\/span><span data-offset-key=\"e952d-101-0\"> outstanding<\/span><span data-offset-key=\"e952d-102-0\"> debts<\/span><span data-offset-key=\"e952d-103-0\">.<\/span><\/p>\r\n<p><strong>Also read: <\/strong><a href=\"https:\/\/razorpay.com\/learn\/business-banking\/hard-credit-score-vs-soft-credit-score-check\/\">Hard Credit Score Check Vs. Soft Credit Score Check: What They Are and Why They Matter?\u00a0<\/a><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-types-of-Credit-Scores\"><\/span><strong>What are the types of Credit Scores?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<h3><strong>1. Experian<\/strong><\/h3>\r\n<p><span style=\"font-weight: 400;\">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. <\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0fIt provides data and detailed analysis to clients\/banks in the form of business credit scores, helping them in their decision-making process.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0fAlong with business credit scores, Experian also offers powerful business tools like Market Switch and Powercurve Origination to help them analyse the score even further.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">\u27a1\ufe0fExperian 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.\u00a0<\/span><\/p>\r\n<p><b>Experian is ranked as one of the most innovative credit-scoring companies in the world by Forbes Magazine.<\/b><\/p>\r\n<p><span style=\"font-weight: 400;\">Experian\u2019s activities are regulated by the Credit Information Companies<\/span><\/p>\r\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/line-of-credit\/?utm_source=Content&amp;utm_medium=Blog&amp;utm_campaign=All+You+Need+to+Know+About+Business+Credit+Score%3A+Experian+%26+CIBIL\">Get started with Line of Credit<\/a><\/div>\r\n<p>&nbsp;<\/p>\r\n<h3><strong>2. CIBIL<\/strong><\/h3>\r\n<p><span style=\"font-weight: 400;\">CIBIL (Credit Information Bureau India Limited) or TransUnion CIBIL is part of the American multinational group, TransUnion. It is India\u2019s first credit bureau and also the most well-known one.\u00a0\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">All major banks, housing finance companies, financial institutions, and NBFCs are members of CIBIL. It collects and maintains data from more than 32 million business entities.\u00a0<\/span> <span style=\"font-weight: 400;\">The Credit Information Report and CIBIL business credit score are generated based on credit information collected by three divisions &#8211; Commercial Bureau, Micro Finance Institution Bureau, and Consumer Bureau for commercial enterprises.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"Advantages-and-Disadvantages-of-Experian-CIBIL\"><\/span><strong>Advantages and Disadvantages of Experian &amp; CIBIL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\r\n<p>Let&#8217;s have a closer look at the advantages and disadvantages of Experian and CIBIL.<\/p>\r\n<ul>\r\n<li>\r\n<h3><strong>Experian<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong>Advantages<\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong>Disadvantages<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian provides businesses with a comprehensive range of services and products, from credit reports to fraud prevention. This allows businesses to better assess potential customers and reduce the risk of fraud.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian&#8217;s services can be expensive, and businesses may need to pay a monthly fee.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian&#8217;s credit monitoring services can alert businesses and consumers to changes in their credit reports, which can help stop identity theft and financial loss.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian&#8217;s credit reports are not always accurate, and incorrect information can appear on them.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian offers a variety of credit score calculators, which can help businesses and consumers determine their creditworthiness.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian may not be able to provide protection against all types of fraud, such as identity theft.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian&#8217;s customer service team is available to answer questions and help consumers understand their credit scores and reports.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">Experian&#8217;s services are only available in certain countries, so businesses and consumers in other parts of the world may not be able to use them.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>&nbsp;<\/p>\r\n<ul>\r\n<li>\r\n<h3><strong>CIBIL<\/strong><\/h3>\r\n<\/li>\r\n<\/ul>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong>Advantages<\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong>Disadvantages<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL provides detailed credit reports that are the basis of all loan and credit applications.\u00a0<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL does not provide access to all the information lenders need to make a proper assessment.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL helps lenders to assess the creditworthiness of a potential customer.\u00a0<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL scores may be inaccurate and misleading.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL helps individuals to track their credit score and understand the factors that affect it.\u00a0<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL reports can take a long time to be updated and they may not reflect recent changes in an individual\u2019s financial and credit situation.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL also helps in identifying potential fraudulent activities.\u00a0<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL is not updated regularly and the scores may be outdated.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL helps lenders and financial institutions to make informed decisions about loan approvals.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">CIBIL scores are based on a number of factors, including payment history, credit utilization, and credit age, which may not be accurate.<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-Factors-that-are-Considered-for-Calculating-Credit-Score\"><\/span><span data-offset-key=\"fhkl2-0-0\">What<\/span><span data-offset-key=\"fhkl2-1-0\"> are<\/span><span data-offset-key=\"fhkl2-2-0\"> the<\/span><span data-offset-key=\"fhkl2-3-0\"> Factors<\/span><span data-offset-key=\"fhkl2-4-0\"> that<\/span><span data-offset-key=\"fhkl2-5-0\"> are<\/span><span data-offset-key=\"fhkl2-6-0\"> Considered<\/span><span data-offset-key=\"fhkl2-7-0\"> for<\/span><span data-offset-key=\"fhkl2-8-0\"> Calculating<\/span><span data-offset-key=\"fhkl2-9-0\"> Credit<\/span><span data-offset-key=\"fhkl2-10-0\"> Score<\/span><span data-offset-key=\"fhkl2-11-0\">?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"fhkl2-14-0\">1<\/span><span data-offset-key=\"fhkl2-15-0\">.<\/span><strong> Payment History:<\/strong><span data-offset-key=\"fhkl2-19-0\"> This<\/span><span data-offset-key=\"fhkl2-20-0\"> is<\/span><span data-offset-key=\"fhkl2-21-0\"> the<\/span><span data-offset-key=\"fhkl2-22-0\"> most<\/span><span data-offset-key=\"fhkl2-23-0\"> important<\/span><span data-offset-key=\"fhkl2-24-0\"> factor<\/span><span data-offset-key=\"fhkl2-25-0\"> in<\/span><span data-offset-key=\"fhkl2-26-0\"> determining<\/span><span data-offset-key=\"fhkl2-27-0\"> your<\/span><span data-offset-key=\"fhkl2-28-0\"> credit<\/span><span data-offset-key=\"fhkl2-29-0\"> score<\/span><span data-offset-key=\"fhkl2-30-0\">.<\/span><span data-offset-key=\"fhkl2-31-0\"> It<\/span><span data-offset-key=\"fhkl2-32-0\"> accounts<\/span><span data-offset-key=\"fhkl2-33-0\"> for<\/span><span data-offset-key=\"fhkl2-34-0\"> 35<\/span><span data-offset-key=\"fhkl2-35-0\">%<\/span><span data-offset-key=\"fhkl2-36-0\"> of<\/span><span data-offset-key=\"fhkl2-37-0\"> your<\/span><span data-offset-key=\"fhkl2-38-0\"> overall<\/span><span data-offset-key=\"fhkl2-39-0\"> score<\/span><span data-offset-key=\"fhkl2-40-0\"> and<\/span><span data-offset-key=\"fhkl2-41-0\"> is<\/span><span data-offset-key=\"fhkl2-42-0\"> based<\/span><span data-offset-key=\"fhkl2-43-0\"> on<\/span><span data-offset-key=\"fhkl2-44-0\"> your<\/span><span data-offset-key=\"fhkl2-45-0\"> track<\/span><span data-offset-key=\"fhkl2-46-0\"> record<\/span><span data-offset-key=\"fhkl2-47-0\"> of<\/span><span data-offset-key=\"fhkl2-48-0\"> making<\/span><span data-offset-key=\"fhkl2-49-0\"> payments<\/span><span data-offset-key=\"fhkl2-50-0\"> on<\/span><span data-offset-key=\"fhkl2-51-0\"> time<\/span><span data-offset-key=\"fhkl2-52-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fhkl2-55-0\">2<\/span><span data-offset-key=\"fhkl2-56-0\">.<\/span><strong> Credit Utilisation:<\/strong><span data-offset-key=\"fhkl2-62-0\"> This<\/span><span data-offset-key=\"fhkl2-63-0\"> is<\/span><span data-offset-key=\"fhkl2-64-0\"> the<\/span><span data-offset-key=\"fhkl2-65-0\"> amount<\/span><span data-offset-key=\"fhkl2-66-0\"> of<\/span><span data-offset-key=\"fhkl2-67-0\"> credit<\/span><span data-offset-key=\"fhkl2-68-0\"> you<\/span><span data-offset-key=\"fhkl2-69-0\"> are<\/span><span data-offset-key=\"fhkl2-70-0\"> using<\/span><span data-offset-key=\"fhkl2-71-0\"> compared<\/span><span data-offset-key=\"fhkl2-72-0\"> to<\/span><span data-offset-key=\"fhkl2-73-0\"> the<\/span><span data-offset-key=\"fhkl2-74-0\"> amount<\/span><span data-offset-key=\"fhkl2-75-0\"> of<\/span><span data-offset-key=\"fhkl2-76-0\"> credit<\/span><span data-offset-key=\"fhkl2-77-0\"> available<\/span><span data-offset-key=\"fhkl2-78-0\"> to<\/span><span data-offset-key=\"fhkl2-79-0\"> you<\/span><span data-offset-key=\"fhkl2-80-0\">.<\/span><span data-offset-key=\"fhkl2-81-0\"> This<\/span><span data-offset-key=\"fhkl2-82-0\"> accounts<\/span><span data-offset-key=\"fhkl2-83-0\"> for<\/span><span data-offset-key=\"fhkl2-84-0\"> 30<\/span><span data-offset-key=\"fhkl2-85-0\">%<\/span><span data-offset-key=\"fhkl2-86-0\"> of<\/span><span data-offset-key=\"fhkl2-87-0\"> your<\/span><span data-offset-key=\"fhkl2-88-0\"> credit<\/span><span data-offset-key=\"fhkl2-89-0\"> score<\/span><span data-offset-key=\"fhkl2-90-0\"> and<\/span><span data-offset-key=\"fhkl2-91-0\"> it<\/span><span data-offset-key=\"fhkl2-92-0\">\u2019<\/span><span data-offset-key=\"fhkl2-93-0\">s<\/span><span data-offset-key=\"fhkl2-94-0\"> important<\/span><span data-offset-key=\"fhkl2-95-0\"> to<\/span><span data-offset-key=\"fhkl2-96-0\"> keep<\/span><span data-offset-key=\"fhkl2-97-0\"> your<\/span><span data-offset-key=\"fhkl2-98-0\"> credit<\/span><span data-offset-key=\"fhkl2-99-0\"> utilisation<\/span><span data-offset-key=\"fhkl2-100-0\"> ratio<\/span><span data-offset-key=\"fhkl2-101-0\"> below<\/span><span data-offset-key=\"fhkl2-102-0\"> 30<\/span><span data-offset-key=\"fhkl2-103-0\">%.<\/span><\/p>\r\n<p><span data-offset-key=\"fhkl2-106-0\">3<\/span><span data-offset-key=\"fhkl2-107-0\">.<\/span><strong> Length of Credit History:<\/strong><span data-offset-key=\"fhkl2-113-0\"> This<\/span><span data-offset-key=\"fhkl2-114-0\"> is<\/span><span data-offset-key=\"fhkl2-115-0\"> the<\/span><span data-offset-key=\"fhkl2-116-0\"> average<\/span><span data-offset-key=\"fhkl2-117-0\"> age<\/span><span data-offset-key=\"fhkl2-118-0\"> of<\/span><span data-offset-key=\"fhkl2-119-0\"> your<\/span><span data-offset-key=\"fhkl2-120-0\"> credit<\/span><span data-offset-key=\"fhkl2-121-0\"> accounts<\/span><span data-offset-key=\"fhkl2-122-0\">.<\/span><span data-offset-key=\"fhkl2-123-0\"> The<\/span><span data-offset-key=\"fhkl2-124-0\"> longer<\/span><span data-offset-key=\"fhkl2-125-0\"> you<\/span><span data-offset-key=\"fhkl2-126-0\"> have<\/span><span data-offset-key=\"fhkl2-127-0\"> had<\/span><span data-offset-key=\"fhkl2-128-0\"> credit<\/span><span data-offset-key=\"fhkl2-129-0\"> accounts<\/span><span data-offset-key=\"fhkl2-130-0\"> open<\/span><span data-offset-key=\"fhkl2-131-0\">,<\/span><span data-offset-key=\"fhkl2-132-0\"> the<\/span><span data-offset-key=\"fhkl2-133-0\"> better<\/span><span data-offset-key=\"fhkl2-134-0\"> your<\/span><span data-offset-key=\"fhkl2-135-0\"> score<\/span><span data-offset-key=\"fhkl2-136-0\"> will<\/span><span data-offset-key=\"fhkl2-137-0\"> be<\/span><span data-offset-key=\"fhkl2-138-0\">.<\/span><span data-offset-key=\"fhkl2-139-0\"> This<\/span><span data-offset-key=\"fhkl2-140-0\"> accounts<\/span><span data-offset-key=\"fhkl2-141-0\"> for<\/span><span data-offset-key=\"fhkl2-142-0\"> 15<\/span><span data-offset-key=\"fhkl2-143-0\">%<\/span><span data-offset-key=\"fhkl2-144-0\"> of<\/span><span data-offset-key=\"fhkl2-145-0\"> your<\/span><span data-offset-key=\"fhkl2-146-0\"> credit<\/span><span data-offset-key=\"fhkl2-147-0\"> score<\/span><span data-offset-key=\"fhkl2-148-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fhkl2-151-0\">4<\/span><span data-offset-key=\"fhkl2-152-0\">.<\/span><strong> Credit Mix:<\/strong><span data-offset-key=\"fhkl2-156-0\"> This<\/span><span data-offset-key=\"fhkl2-157-0\"> is<\/span><span data-offset-key=\"fhkl2-158-0\"> the<\/span><span data-offset-key=\"fhkl2-159-0\"> variety<\/span><span data-offset-key=\"fhkl2-160-0\"> of<\/span><span data-offset-key=\"fhkl2-161-0\"> credit<\/span><span data-offset-key=\"fhkl2-162-0\"> accounts<\/span><span data-offset-key=\"fhkl2-163-0\"> you<\/span><span data-offset-key=\"fhkl2-164-0\"> have<\/span><span data-offset-key=\"fhkl2-165-0\">.<\/span><span data-offset-key=\"fhkl2-166-0\"> Having<\/span><span data-offset-key=\"fhkl2-167-0\"> a<\/span><span data-offset-key=\"fhkl2-168-0\"> good<\/span><span data-offset-key=\"fhkl2-169-0\"> mix<\/span><span data-offset-key=\"fhkl2-170-0\"> of<\/span><span data-offset-key=\"fhkl2-171-0\"> credit<\/span><span data-offset-key=\"fhkl2-172-0\">,<\/span><span data-offset-key=\"fhkl2-173-0\"> such<\/span><span data-offset-key=\"fhkl2-174-0\"> as<\/span><span data-offset-key=\"fhkl2-175-0\"> a<\/span><span data-offset-key=\"fhkl2-176-0\"> mortgage<\/span><span data-offset-key=\"fhkl2-177-0\">,<\/span><span data-offset-key=\"fhkl2-178-0\"> auto<\/span><span data-offset-key=\"fhkl2-179-0\"> loan<\/span><span data-offset-key=\"fhkl2-180-0\">,<\/span><span data-offset-key=\"fhkl2-181-0\"> and<\/span><span data-offset-key=\"fhkl2-182-0\"> credit<\/span><span data-offset-key=\"fhkl2-183-0\"> card<\/span><span data-offset-key=\"fhkl2-185-0\">\u00a0can<\/span><span data-offset-key=\"fhkl2-186-0\"> help<\/span><span data-offset-key=\"fhkl2-187-0\"> your<\/span><span data-offset-key=\"fhkl2-188-0\"> score<\/span><span data-offset-key=\"fhkl2-189-0\">.<\/span><span data-offset-key=\"fhkl2-190-0\"> This<\/span><span data-offset-key=\"fhkl2-191-0\"> accounts<\/span><span data-offset-key=\"fhkl2-192-0\"> for<\/span><span data-offset-key=\"fhkl2-193-0\"> 10<\/span><span data-offset-key=\"fhkl2-194-0\">%<\/span><span data-offset-key=\"fhkl2-195-0\"> of<\/span><span data-offset-key=\"fhkl2-196-0\"> your<\/span><span data-offset-key=\"fhkl2-197-0\"> credit<\/span><span data-offset-key=\"fhkl2-198-0\"> score<\/span><span data-offset-key=\"fhkl2-199-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fhkl2-202-0\">5<\/span><span data-offset-key=\"fhkl2-203-0\">.<\/span><strong> New Credit:<\/strong><span data-offset-key=\"fhkl2-207-0\"> This<\/span><span data-offset-key=\"fhkl2-208-0\"> is<\/span><span data-offset-key=\"fhkl2-209-0\"> the<\/span><span data-offset-key=\"fhkl2-210-0\"> number<\/span><span data-offset-key=\"fhkl2-211-0\"> of<\/span><span data-offset-key=\"fhkl2-212-0\"> recently<\/span><span data-offset-key=\"fhkl2-213-0\"> opened<\/span><span data-offset-key=\"fhkl2-214-0\"> accounts<\/span><span data-offset-key=\"fhkl2-215-0\">.<\/span><span data-offset-key=\"fhkl2-216-0\"> Too<\/span><span data-offset-key=\"fhkl2-217-0\"> many<\/span><span data-offset-key=\"fhkl2-218-0\"> new<\/span><span data-offset-key=\"fhkl2-219-0\"> accounts<\/span><span data-offset-key=\"fhkl2-220-0\"> in<\/span><span data-offset-key=\"fhkl2-221-0\"> a<\/span><span data-offset-key=\"fhkl2-222-0\"> short<\/span><span data-offset-key=\"fhkl2-223-0\"> period<\/span><span data-offset-key=\"fhkl2-224-0\"> of<\/span><span data-offset-key=\"fhkl2-225-0\"> time<\/span><span data-offset-key=\"fhkl2-226-0\"> can<\/span><span data-offset-key=\"fhkl2-227-0\"> hurt<\/span><span data-offset-key=\"fhkl2-228-0\"> your<\/span><span data-offset-key=\"fhkl2-229-0\"> score<\/span><span data-offset-key=\"fhkl2-230-0\">.<\/span><span data-offset-key=\"fhkl2-231-0\"> This<\/span><span data-offset-key=\"fhkl2-232-0\"> accounts<\/span><span data-offset-key=\"fhkl2-233-0\"> for<\/span><span data-offset-key=\"fhkl2-234-0\"> 10<\/span><span data-offset-key=\"fhkl2-235-0\">%<\/span><span data-offset-key=\"fhkl2-236-0\"> of<\/span><span data-offset-key=\"fhkl2-237-0\"> your<\/span><span data-offset-key=\"fhkl2-238-0\"> credit<\/span><span data-offset-key=\"fhkl2-239-0\"> score<\/span><span data-offset-key=\"fhkl2-240-0\">.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"How-is-Credit-Score-Calculated\"><\/span><strong>How is Credit Score Calculated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"embi9-8-0\">Credit<\/span><span data-offset-key=\"embi9-9-0\"> scores<\/span><span data-offset-key=\"embi9-10-0\"> are<\/span><span data-offset-key=\"embi9-11-0\"> calculated<\/span><span data-offset-key=\"embi9-12-0\"> using<\/span><span data-offset-key=\"embi9-13-0\"> a<\/span><span data-offset-key=\"embi9-14-0\"> complicated<\/span><span data-offset-key=\"embi9-15-0\"> algorithm<\/span><span data-offset-key=\"embi9-16-0\"> that<\/span><span data-offset-key=\"embi9-17-0\"> takes<\/span><span data-offset-key=\"embi9-18-0\"> into<\/span><span data-offset-key=\"embi9-19-0\"> account<\/span><span data-offset-key=\"embi9-20-0\"> a<\/span><span data-offset-key=\"embi9-21-0\"> variety<\/span><span data-offset-key=\"embi9-22-0\"> of<\/span><span data-offset-key=\"embi9-23-0\"> factors<\/span><span data-offset-key=\"embi9-24-0\">.<\/span><span data-offset-key=\"embi9-25-0\"> These<\/span><span data-offset-key=\"embi9-26-0\"> factors<\/span><span data-offset-key=\"embi9-27-0\"> include<\/span><span data-offset-key=\"embi9-28-0\"> payment<\/span><span data-offset-key=\"embi9-29-0\"> history<\/span><span data-offset-key=\"embi9-30-0\">,<\/span><span data-offset-key=\"embi9-31-0\"> the amount<\/span><span data-offset-key=\"embi9-32-0\"> owed<\/span><span data-offset-key=\"embi9-33-0\">,<\/span><span data-offset-key=\"embi9-34-0\"> length<\/span><span data-offset-key=\"embi9-35-0\"> of<\/span><span data-offset-key=\"embi9-36-0\"> credit<\/span><span data-offset-key=\"embi9-37-0\"> history<\/span><span data-offset-key=\"embi9-38-0\">,<\/span><span data-offset-key=\"embi9-39-0\"> new<\/span><span data-offset-key=\"embi9-40-0\"> credit<\/span><span data-offset-key=\"embi9-41-0\">,<\/span><span data-offset-key=\"embi9-42-0\"> types<\/span><span data-offset-key=\"embi9-43-0\"> of<\/span><span data-offset-key=\"embi9-44-0\"> credit<\/span><span data-offset-key=\"embi9-45-0\"> used<\/span><span data-offset-key=\"embi9-46-0\">,<\/span><span data-offset-key=\"embi9-47-0\"> and<\/span><span data-offset-key=\"embi9-48-0\"> any<\/span><span data-offset-key=\"embi9-49-0\"> public<\/span><span data-offset-key=\"embi9-50-0\"> records<\/span><span data-offset-key=\"embi9-51-0\">.<\/span><span data-offset-key=\"embi9-52-0\"> Generally<\/span><span data-offset-key=\"embi9-53-0\">,<\/span><span data-offset-key=\"embi9-54-0\"> the<\/span><span data-offset-key=\"embi9-55-0\"> higher<\/span><span data-offset-key=\"embi9-56-0\"> your<\/span><span data-offset-key=\"embi9-57-0\"> score<\/span><span data-offset-key=\"embi9-58-0\">,<\/span><span data-offset-key=\"embi9-59-0\"> the<\/span><span data-offset-key=\"embi9-60-0\"> better<\/span><span data-offset-key=\"embi9-61-0\"> your<\/span><span data-offset-key=\"embi9-62-0\"> credit<\/span><span data-offset-key=\"embi9-63-0\"> looks<\/span><span data-offset-key=\"embi9-64-0\"> to<\/span><span data-offset-key=\"embi9-65-0\"> potential<\/span><span data-offset-key=\"embi9-66-0\"> lenders<\/span><span data-offset-key=\"embi9-67-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"embi9-71-0\">\u27a1\ufe0fPay<\/span><span data-offset-key=\"embi9-72-0\">ment<\/span><span data-offset-key=\"embi9-73-0\"> history<\/span><span data-offset-key=\"embi9-74-0\"> accounts<\/span><span data-offset-key=\"embi9-75-0\"> for<\/span><span data-offset-key=\"embi9-76-0\"> 35<\/span><span data-offset-key=\"embi9-77-0\">%<\/span><span data-offset-key=\"embi9-78-0\"> of<\/span><span data-offset-key=\"embi9-79-0\"> a<\/span><span data-offset-key=\"embi9-80-0\"> credit<\/span><span data-offset-key=\"embi9-81-0\"> score<\/span><\/p>\r\n<p><span data-offset-key=\"embi9-83-0\">\u27a1\ufe0fthe amount<\/span><span data-offset-key=\"embi9-84-0\"> owed<\/span><span data-offset-key=\"embi9-85-0\"> accounts<\/span><span data-offset-key=\"embi9-86-0\"> for<\/span><span data-offset-key=\"embi9-87-0\"> 30<\/span><span data-offset-key=\"embi9-88-0\">%<\/span><\/p>\r\n<p><span data-offset-key=\"embi9-89-0\">\u27a1\ufe0flength<\/span><span data-offset-key=\"embi9-90-0\"> of<\/span><span data-offset-key=\"embi9-91-0\"> credit<\/span><span data-offset-key=\"embi9-92-0\"> history<\/span><span data-offset-key=\"embi9-93-0\"> accounts<\/span><span data-offset-key=\"embi9-94-0\"> for<\/span><span data-offset-key=\"embi9-95-0\"> 15<\/span><span data-offset-key=\"embi9-96-0\">%<\/span><span data-offset-key=\"embi9-97-0\">\u00a0new<\/span><span data-offset-key=\"embi9-98-0\"> credit<\/span><span data-offset-key=\"embi9-99-0\"> accounts<\/span><span data-offset-key=\"embi9-100-0\"> for<\/span><span data-offset-key=\"embi9-101-0\"> 10<\/span><span data-offset-key=\"embi9-102-0\">%<\/span><\/p>\r\n<p><span data-offset-key=\"embi9-103-0\">\u27a1\ufe0ftypes<\/span><span data-offset-key=\"embi9-104-0\"> of<\/span><span data-offset-key=\"embi9-105-0\"> credit<\/span><span data-offset-key=\"embi9-106-0\"> used<\/span><span data-offset-key=\"embi9-107-0\"> account<\/span><span data-offset-key=\"embi9-108-0\"> for<\/span><span data-offset-key=\"embi9-109-0\"> 10<\/span><span data-offset-key=\"embi9-110-0\">%,<\/span><\/p>\r\n<p><span data-offset-key=\"embi9-111-0\">\u27a1\ufe0fand<\/span><span data-offset-key=\"embi9-112-0\"> any<\/span><span data-offset-key=\"embi9-113-0\"> public<\/span><span data-offset-key=\"embi9-114-0\"> records<\/span><span data-offset-key=\"embi9-115-0\"> account<\/span><span data-offset-key=\"embi9-116-0\"> for<\/span><span data-offset-key=\"embi9-117-0\"> 10<\/span><span data-offset-key=\"embi9-118-0\">%.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"Why-is-it-Important-to-Maintain-a-Good-Credit-Score\"><\/span><span data-offset-key=\"a3c6e-0-0\">Why<\/span><span data-offset-key=\"a3c6e-1-0\"> is<\/span><span data-offset-key=\"a3c6e-2-0\"> it<\/span><span data-offset-key=\"a3c6e-3-0\"> Important<\/span><span data-offset-key=\"a3c6e-4-0\"> to<\/span><span data-offset-key=\"a3c6e-5-0\"> Maintain<\/span><span data-offset-key=\"a3c6e-6-0\"> a<\/span><span data-offset-key=\"a3c6e-7-0\"> Good<\/span><span data-offset-key=\"a3c6e-8-0\"> Credit<\/span><span data-offset-key=\"a3c6e-9-0\"> Score<\/span><span data-offset-key=\"a3c6e-10-0\">?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"a3c6e-13-0\">Having<\/span><span data-offset-key=\"a3c6e-14-0\"> a<\/span><span data-offset-key=\"a3c6e-15-0\"> good<\/span><span data-offset-key=\"a3c6e-16-0\"> credit<\/span><span data-offset-key=\"a3c6e-17-0\"> score<\/span><span data-offset-key=\"a3c6e-18-0\"> is<\/span><span data-offset-key=\"a3c6e-19-0\"> important<\/span><span data-offset-key=\"a3c6e-20-0\"> because<\/span><span data-offset-key=\"a3c6e-21-0\"> it<\/span><span data-offset-key=\"a3c6e-22-0\"> can<\/span><span data-offset-key=\"a3c6e-23-0\"> affect<\/span><span data-offset-key=\"a3c6e-24-0\"> many<\/span><span data-offset-key=\"a3c6e-25-0\"> aspects<\/span><span data-offset-key=\"a3c6e-26-0\"> of<\/span><span data-offset-key=\"a3c6e-27-0\"> your<\/span><span data-offset-key=\"a3c6e-28-0\"> financial<\/span><span data-offset-key=\"a3c6e-29-0\"> life<\/span><span data-offset-key=\"a3c6e-30-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"a3c6e-31-0\">\u27a1\ufe0fA<\/span><span data-offset-key=\"a3c6e-32-0\"> good<\/span><span data-offset-key=\"a3c6e-33-0\"> credit<\/span><span data-offset-key=\"a3c6e-34-0\"> score<\/span><span data-offset-key=\"a3c6e-35-0\"> can<\/span><span data-offset-key=\"a3c6e-36-0\"> help<\/span><span data-offset-key=\"a3c6e-37-0\"> you<\/span><span data-offset-key=\"a3c6e-38-0\"> get<\/span><span data-offset-key=\"a3c6e-39-0\"> approved<\/span><span data-offset-key=\"a3c6e-40-0\"> for<\/span><span data-offset-key=\"a3c6e-41-0\"> credit<\/span><span data-offset-key=\"a3c6e-42-0\"> cards<\/span><span data-offset-key=\"a3c6e-43-0\">,<\/span><span data-offset-key=\"a3c6e-44-0\"> loans<\/span><span data-offset-key=\"a3c6e-45-0\">,<\/span><span data-offset-key=\"a3c6e-46-0\"> and<\/span><span data-offset-key=\"a3c6e-47-0\"> other financing. <\/span><\/p>\r\n<p><span data-offset-key=\"a3c6e-47-0\">\u27a1\ufe0fIt can also help you get lower interest rates and better terms on those loans.<\/span><\/p>\r\n<p><span data-offset-key=\"a3c6e-47-0\">\u27a1\ufe0fAdditionally, a good credit score can help you secure lower insurance premiums, as some insurance companies use credit scores to determine how much to charge you. <\/span><\/p>\r\n<p><span data-offset-key=\"a3c6e-47-0\">\u27a1\ufe0fHaving a good credit score can also help you when applying for a job. Some employers may consider your credit score when making decisions about hiring.<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"How-can-Credit-Scores-be-Improved\"><\/span><strong>How can Credit Scores be Improved?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Let&#8217;s have a look at the way a credit score can be improved.<\/p>\r\n<p><span data-offset-key=\"12cbo-10-0\">1<\/span><span data-offset-key=\"12cbo-11-0\">.<\/span><strong> Pay bills on time:<\/strong><span data-offset-key=\"12cbo-17-0\"> Make<\/span><span data-offset-key=\"12cbo-18-0\"> sure<\/span><span data-offset-key=\"12cbo-19-0\"> to<\/span><span data-offset-key=\"12cbo-20-0\"> always<\/span><span data-offset-key=\"12cbo-21-0\"> pay<\/span><span data-offset-key=\"12cbo-22-0\"> your<\/span><span data-offset-key=\"12cbo-23-0\"> bills<\/span><span data-offset-key=\"12cbo-24-0\"> on<\/span><span data-offset-key=\"12cbo-25-0\"> time<\/span><span data-offset-key=\"12cbo-26-0\"> and<\/span><span data-offset-key=\"12cbo-27-0\"> in<\/span><span data-offset-key=\"12cbo-28-0\"> full<\/span><span data-offset-key=\"12cbo-29-0\">.<\/span><span data-offset-key=\"12cbo-30-0\"> Payment<\/span><span data-offset-key=\"12cbo-31-0\"> history<\/span><span data-offset-key=\"12cbo-32-0\"> is<\/span><span data-offset-key=\"12cbo-33-0\"> the<\/span><span data-offset-key=\"12cbo-34-0\"> most<\/span><span data-offset-key=\"12cbo-35-0\"> important<\/span><span data-offset-key=\"12cbo-36-0\"> factor<\/span><span data-offset-key=\"12cbo-37-0\"> in<\/span><span data-offset-key=\"12cbo-38-0\"> calculating<\/span><span data-offset-key=\"12cbo-39-0\"> your<\/span><span data-offset-key=\"12cbo-40-0\"> credit<\/span><span data-offset-key=\"12cbo-41-0\"> score<\/span><span data-offset-key=\"12cbo-42-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-46-0\">2<\/span><span data-offset-key=\"12cbo-47-0\">.<\/span><strong> Reduce credit utilisation:<\/strong><span data-offset-key=\"12cbo-52-0\"> Try<\/span><span data-offset-key=\"12cbo-53-0\"> to<\/span><span data-offset-key=\"12cbo-54-0\"> keep<\/span><span data-offset-key=\"12cbo-55-0\"> your<\/span><span data-offset-key=\"12cbo-56-0\"> credit<\/span><span data-offset-key=\"12cbo-57-0\"> utilisation<\/span><span data-offset-key=\"12cbo-58-0\"> ratio<\/span><span data-offset-key=\"12cbo-59-0\"> as<\/span><span data-offset-key=\"12cbo-60-0\"> low<\/span><span data-offset-key=\"12cbo-61-0\"> as<\/span><span data-offset-key=\"12cbo-62-0\"> possible<\/span><span data-offset-key=\"12cbo-63-0\">.<\/span><span data-offset-key=\"12cbo-64-0\"> This<\/span><span data-offset-key=\"12cbo-65-0\"> is<\/span><span data-offset-key=\"12cbo-66-0\"> the<\/span><span data-offset-key=\"12cbo-67-0\"> amount<\/span><span data-offset-key=\"12cbo-68-0\"> of<\/span><span data-offset-key=\"12cbo-69-0\"> debt<\/span><span data-offset-key=\"12cbo-70-0\"> you<\/span><span data-offset-key=\"12cbo-71-0\">\u2019<\/span><span data-offset-key=\"12cbo-72-0\">re<\/span><span data-offset-key=\"12cbo-73-0\"> carrying<\/span><span data-offset-key=\"12cbo-74-0\"> compared<\/span><span data-offset-key=\"12cbo-75-0\"> to<\/span><span data-offset-key=\"12cbo-76-0\"> your<\/span><span data-offset-key=\"12cbo-77-0\"> available<\/span><span data-offset-key=\"12cbo-78-0\"> credit<\/span><span data-offset-key=\"12cbo-79-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-83-0\">3<\/span><span data-offset-key=\"12cbo-84-0\">.<\/span><strong> Dispute errors:<\/strong><span data-offset-key=\"12cbo-90-0\"> Check<\/span><span data-offset-key=\"12cbo-91-0\"> your<\/span><span data-offset-key=\"12cbo-92-0\"> credit<\/span><span data-offset-key=\"12cbo-93-0\"> report<\/span><span data-offset-key=\"12cbo-94-0\"> and<\/span><span data-offset-key=\"12cbo-95-0\"> dispute<\/span><span data-offset-key=\"12cbo-96-0\"> any<\/span><span data-offset-key=\"12cbo-97-0\"> errors<\/span><span data-offset-key=\"12cbo-98-0\"> you<\/span><span data-offset-key=\"12cbo-99-0\"> find<\/span><span data-offset-key=\"12cbo-100-0\">.<\/span><span data-offset-key=\"12cbo-101-0\"> This<\/span><span data-offset-key=\"12cbo-102-0\"> can<\/span><span data-offset-key=\"12cbo-103-0\"> help<\/span><span data-offset-key=\"12cbo-104-0\"> improve<\/span><span data-offset-key=\"12cbo-105-0\"> your<\/span><span data-offset-key=\"12cbo-106-0\"> score<\/span><span data-offset-key=\"12cbo-107-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-110-0\">4<\/span><span data-offset-key=\"12cbo-111-0\">.<\/span><strong> Monitor your credit score:<\/strong><span data-offset-key=\"12cbo-117-0\"> Track<\/span><span data-offset-key=\"12cbo-118-0\"> your<\/span><span data-offset-key=\"12cbo-119-0\"> credit<\/span><span data-offset-key=\"12cbo-120-0\"> score<\/span><span data-offset-key=\"12cbo-121-0\"> consistently<\/span><span data-offset-key=\"12cbo-122-0\"> to<\/span><span data-offset-key=\"12cbo-123-0\"> monitor<\/span><span data-offset-key=\"12cbo-124-0\"> your<\/span><span data-offset-key=\"12cbo-125-0\"> progress<\/span><span data-offset-key=\"12cbo-126-0\">.<\/span><span data-offset-key=\"12cbo-127-0\"> Keeping<\/span><span data-offset-key=\"12cbo-128-0\"> an<\/span><span data-offset-key=\"12cbo-129-0\"> eye<\/span><span data-offset-key=\"12cbo-130-0\"> on<\/span><span data-offset-key=\"12cbo-131-0\"> your<\/span><span data-offset-key=\"12cbo-132-0\"> score<\/span><span data-offset-key=\"12cbo-133-0\"> gives<\/span><span data-offset-key=\"12cbo-134-0\"> you<\/span><span data-offset-key=\"12cbo-135-0\"> a<\/span><span data-offset-key=\"12cbo-136-0\"> better<\/span><span data-offset-key=\"12cbo-137-0\"> idea<\/span><span data-offset-key=\"12cbo-138-0\"> of<\/span><span data-offset-key=\"12cbo-139-0\"> how<\/span><span data-offset-key=\"12cbo-140-0\"> your<\/span><span data-offset-key=\"12cbo-141-0\"> credit<\/span><span data-offset-key=\"12cbo-142-0\"> habits<\/span><span data-offset-key=\"12cbo-143-0\"> are<\/span><span data-offset-key=\"12cbo-144-0\"> affecting<\/span><span data-offset-key=\"12cbo-145-0\"> your<\/span><span data-offset-key=\"12cbo-146-0\"> score<\/span><span data-offset-key=\"12cbo-147-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-151-0\">5<\/span><span data-offset-key=\"12cbo-152-0\">.<\/span><strong> Limit new credit applications:<\/strong><span data-offset-key=\"12cbo-158-0\"> Don<\/span><span data-offset-key=\"12cbo-159-0\">&#8216;t<\/span><span data-offset-key=\"12cbo-160-0\"> open<\/span><span data-offset-key=\"12cbo-161-0\"> too<\/span><span data-offset-key=\"12cbo-162-0\"> many<\/span><span data-offset-key=\"12cbo-163-0\"> new<\/span><span data-offset-key=\"12cbo-164-0\"> credit<\/span><span data-offset-key=\"12cbo-165-0\"> accounts<\/span><span data-offset-key=\"12cbo-166-0\"> at<\/span><span data-offset-key=\"12cbo-167-0\"> once<\/span><span data-offset-key=\"12cbo-168-0\">.<\/span><span data-offset-key=\"12cbo-169-0\"> Each<\/span><span data-offset-key=\"12cbo-170-0\"> application<\/span><span data-offset-key=\"12cbo-171-0\"> results<\/span><span data-offset-key=\"12cbo-172-0\"> in<\/span><span data-offset-key=\"12cbo-173-0\"> a<\/span><span data-offset-key=\"12cbo-174-0\"> credit<\/span><span data-offset-key=\"12cbo-175-0\"> inquiry<\/span><span data-offset-key=\"12cbo-176-0\">,<\/span><span data-offset-key=\"12cbo-177-0\"> and<\/span><span data-offset-key=\"12cbo-178-0\"> too<\/span><span data-offset-key=\"12cbo-179-0\"> many<\/span><span data-offset-key=\"12cbo-180-0\"> inquiries<\/span><span data-offset-key=\"12cbo-181-0\"> can<\/span><span data-offset-key=\"12cbo-182-0\"> lower<\/span><span data-offset-key=\"12cbo-183-0\"> your<\/span><span data-offset-key=\"12cbo-184-0\"> credit<\/span><span data-offset-key=\"12cbo-185-0\"> score<\/span><span data-offset-key=\"12cbo-186-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-190-0\">6<\/span><span data-offset-key=\"12cbo-191-0\">.<\/span><strong> Use a secured credit card:<\/strong><span data-offset-key=\"12cbo-198-0\"> A<\/span><span data-offset-key=\"12cbo-199-0\"> secured<\/span><span data-offset-key=\"12cbo-200-0\"> credit<\/span><span data-offset-key=\"12cbo-201-0\"> card<\/span><span data-offset-key=\"12cbo-202-0\"> is<\/span><span data-offset-key=\"12cbo-203-0\"> an<\/span><span data-offset-key=\"12cbo-204-0\"> option<\/span><span data-offset-key=\"12cbo-205-0\"> for<\/span><span data-offset-key=\"12cbo-206-0\"> people<\/span><span data-offset-key=\"12cbo-207-0\"> with<\/span><span data-offset-key=\"12cbo-208-0\"> poor<\/span><span data-offset-key=\"12cbo-209-0\"> credit<\/span><span data-offset-key=\"12cbo-210-0\">.<\/span><span data-offset-key=\"12cbo-211-0\"> It<\/span><span data-offset-key=\"12cbo-212-0\"> requires<\/span><span data-offset-key=\"12cbo-213-0\"> a<\/span><span data-offset-key=\"12cbo-214-0\"> cash<\/span><span data-offset-key=\"12cbo-215-0\"> deposit<\/span><span data-offset-key=\"12cbo-216-0\"> and<\/span><span data-offset-key=\"12cbo-217-0\"> helps<\/span><span data-offset-key=\"12cbo-218-0\"> build<\/span><span data-offset-key=\"12cbo-219-0\"> credit<\/span><span data-offset-key=\"12cbo-220-0\"> by<\/span><span data-offset-key=\"12cbo-221-0\"> reporting<\/span><span data-offset-key=\"12cbo-222-0\"> your<\/span><span data-offset-key=\"12cbo-223-0\"> activity<\/span><span data-offset-key=\"12cbo-224-0\"> to<\/span><span data-offset-key=\"12cbo-225-0\"> the<\/span><span data-offset-key=\"12cbo-226-0\"> credit<\/span><span data-offset-key=\"12cbo-227-0\"> b<\/span><span data-offset-key=\"12cbo-228-0\">ure<\/span><span data-offset-key=\"12cbo-229-0\">aus<\/span><span data-offset-key=\"12cbo-230-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"12cbo-234-0\">7<\/span><span data-offset-key=\"12cbo-235-0\">.<\/span><strong> Ask for a higher credit limit:<\/strong><span data-offset-key=\"12cbo-243-0\"> Ask<\/span><span data-offset-key=\"12cbo-244-0\"> your<\/span><span data-offset-key=\"12cbo-245-0\"> credit<\/span><span data-offset-key=\"12cbo-246-0\"> card<\/span><span data-offset-key=\"12cbo-247-0\"> company<\/span><span data-offset-key=\"12cbo-248-0\"> to<\/span><span data-offset-key=\"12cbo-249-0\"> increase<\/span><span data-offset-key=\"12cbo-250-0\"> your<\/span><span data-offset-key=\"12cbo-251-0\"> credit<\/span><span data-offset-key=\"12cbo-252-0\"> limit<\/span><span data-offset-key=\"12cbo-253-0\">.<\/span><span data-offset-key=\"12cbo-254-0\"> This<\/span><span data-offset-key=\"12cbo-255-0\"> can<\/span><span data-offset-key=\"12cbo-256-0\"> help<\/span><span data-offset-key=\"12cbo-257-0\"> improve<\/span><span data-offset-key=\"12cbo-258-0\"> your<\/span><span data-offset-key=\"12cbo-259-0\"> credit<\/span><span data-offset-key=\"12cbo-260-0\"> utilisation<\/span><span data-offset-key=\"12cbo-261-0\"> ratio<\/span><span data-offset-key=\"12cbo-262-0\"> and<\/span><span data-offset-key=\"12cbo-263-0\"> result<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"Difference-between-Credit-Report-and-Credit-Score\"><\/span><strong>Difference between Credit Report and Credit Score<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p>Let&#8217;s have a closer look at the differences between a credit report and a credit score.<\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong>Credit Report<\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong>Credit Score<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">A credit report is a detailed report of an individual&#8217;s credit history that includes information about their current credit accounts, loans, payment history, and other financial activities.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">A credit score is a numerical representation of an individual&#8217;s creditworthiness, based on the credit report.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It is considered a credit reference<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It can help measure credit risk<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It shows details like the amount of the loan, payment history etc<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It only shows your creditworthiness<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It is provided by a credit bureau such as Equifax, Experian, or TransUnion.<\/span><\/p>\r\n<\/td>\r\n<td>\r\n<p><span style=\"font-weight: 400;\">It is usually calculated by a credit reporting agency using a specific formula.\u00a0<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-Credit-Reports-for-Companies-and-Businesses\"><\/span><span data-offset-key=\"fb6s5-0-0\">Import<\/span><span data-offset-key=\"fb6s5-1-0\">ance<\/span><span data-offset-key=\"fb6s5-2-0\"> of<\/span><span data-offset-key=\"fb6s5-3-0\"> Credit<\/span><span data-offset-key=\"fb6s5-4-0\"> Reports<\/span><span data-offset-key=\"fb6s5-5-0\"> for<\/span><span data-offset-key=\"fb6s5-6-0\"> Companies<\/span><span data-offset-key=\"fb6s5-7-0\"> and<\/span><span data-offset-key=\"fb6s5-8-0\"> Business<\/span><span data-offset-key=\"fb6s5-9-0\">es<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span data-offset-key=\"fb6s5-12-0\">\u27a1\ufe0fCredit<\/span><span data-offset-key=\"fb6s5-13-0\"> reports<\/span><span data-offset-key=\"fb6s5-14-0\"> provide<\/span><span data-offset-key=\"fb6s5-15-0\"> businesses<\/span><span data-offset-key=\"fb6s5-16-0\"> with<\/span><span data-offset-key=\"fb6s5-17-0\"> valuable<\/span><span data-offset-key=\"fb6s5-18-0\"> insights<\/span><span data-offset-key=\"fb6s5-19-0\"> into<\/span><span data-offset-key=\"fb6s5-20-0\"> the<\/span><span data-offset-key=\"fb6s5-21-0\"> creditworthiness<\/span><span data-offset-key=\"fb6s5-24-0\">\u00a0of<\/span><span data-offset-key=\"fb6s5-25-0\"> potential<\/span><span data-offset-key=\"fb6s5-26-0\"> customers<\/span><span data-offset-key=\"fb6s5-27-0\">,<\/span><span data-offset-key=\"fb6s5-28-0\"> suppliers<\/span><span data-offset-key=\"fb6s5-29-0\">,<\/span><span data-offset-key=\"fb6s5-30-0\"> and<\/span><span data-offset-key=\"fb6s5-31-0\"> partners<\/span><span data-offset-key=\"fb6s5-32-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fb6s5-33-0\">\u27a1\ufe0fHaving<\/span><span data-offset-key=\"fb6s5-34-0\"> access<\/span><span data-offset-key=\"fb6s5-35-0\"> to<\/span><span data-offset-key=\"fb6s5-36-0\"> this<\/span><span data-offset-key=\"fb6s5-37-0\"> information<\/span><span data-offset-key=\"fb6s5-38-0\"> can<\/span><span data-offset-key=\"fb6s5-39-0\"> help<\/span><span data-offset-key=\"fb6s5-40-0\"> protect<\/span><span data-offset-key=\"fb6s5-41-0\"> a<\/span><span data-offset-key=\"fb6s5-42-0\"> business<\/span><span data-offset-key=\"fb6s5-43-0\"> from<\/span><span data-offset-key=\"fb6s5-44-0\"> financial<\/span><span data-offset-key=\"fb6s5-45-0\"> risk<\/span><span data-offset-key=\"fb6s5-46-0\"> and<\/span><span data-offset-key=\"fb6s5-47-0\"> ensure<\/span><span data-offset-key=\"fb6s5-48-0\"> that<\/span><span data-offset-key=\"fb6s5-49-0\"> it<\/span><span data-offset-key=\"fb6s5-50-0\"> makes<\/span><span data-offset-key=\"fb6s5-51-0\"> sound<\/span><span data-offset-key=\"fb6s5-52-0\"> credit<\/span><span data-offset-key=\"fb6s5-53-0\"> decisions<\/span><span data-offset-key=\"fb6s5-54-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fb6s5-55-0\">\u27a1\ufe0fCompanies<\/span><span data-offset-key=\"fb6s5-56-0\"> can<\/span><span data-offset-key=\"fb6s5-57-0\"> use<\/span><span data-offset-key=\"fb6s5-58-0\"> credit<\/span><span data-offset-key=\"fb6s5-59-0\"> reports<\/span><span data-offset-key=\"fb6s5-60-0\"> to<\/span><span data-offset-key=\"fb6s5-61-0\"> assess<\/span><span data-offset-key=\"fb6s5-62-0\"> the<\/span><span data-offset-key=\"fb6s5-63-0\"> financial<\/span><span data-offset-key=\"fb6s5-64-0\"> stability<\/span><span data-offset-key=\"fb6s5-65-0\"> of<\/span><span data-offset-key=\"fb6s5-66-0\"> customers<\/span><span data-offset-key=\"fb6s5-67-0\"> and<\/span><span data-offset-key=\"fb6s5-68-0\"> suppliers<\/span><span data-offset-key=\"fb6s5-69-0\">,<\/span><span data-offset-key=\"fb6s5-70-0\"> anticipate<\/span><span data-offset-key=\"fb6s5-71-0\"> potential<\/span><span data-offset-key=\"fb6s5-72-0\"> payment<\/span><span data-offset-key=\"fb6s5-73-0\"> problems<\/span><span data-offset-key=\"fb6s5-74-0\">,<\/span><span data-offset-key=\"fb6s5-75-0\"> and<\/span><span data-offset-key=\"fb6s5-76-0\"> improve<\/span><span data-offset-key=\"fb6s5-77-0\"> their<\/span><span data-offset-key=\"fb6s5-78-0\"> cash<\/span><span data-offset-key=\"fb6s5-79-0\"> flow<\/span><span data-offset-key=\"fb6s5-80-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fb6s5-81-0\">\u27a1\ufe0fThey<\/span><span data-offset-key=\"fb6s5-82-0\"> can<\/span><span data-offset-key=\"fb6s5-83-0\"> also<\/span><span data-offset-key=\"fb6s5-84-0\"> use<\/span><span data-offset-key=\"fb6s5-85-0\"> credit<\/span><span data-offset-key=\"fb6s5-86-0\"> reports<\/span><span data-offset-key=\"fb6s5-87-0\"> to<\/span><span data-offset-key=\"fb6s5-88-0\"> verify<\/span><span data-offset-key=\"fb6s5-89-0\"> customer<\/span><span data-offset-key=\"fb6s5-90-0\"> information<\/span><span data-offset-key=\"fb6s5-91-0\">,<\/span><span data-offset-key=\"fb6s5-92-0\"> monitor<\/span><span data-offset-key=\"fb6s5-93-0\"> accounts<\/span><span data-offset-key=\"fb6s5-94-0\"> for<\/span><span data-offset-key=\"fb6s5-95-0\"> fraud<\/span><span data-offset-key=\"fb6s5-96-0\">,<\/span><span data-offset-key=\"fb6s5-97-0\"> verify<\/span><span data-offset-key=\"fb6s5-98-0\"> vendors<\/span><span data-offset-key=\"fb6s5-99-0\">,<\/span><span data-offset-key=\"fb6s5-100-0\"> and<\/span><span data-offset-key=\"fb6s5-101-0\"> determine<\/span><span data-offset-key=\"fb6s5-102-0\"> if<\/span><span data-offset-key=\"fb6s5-103-0\"> a<\/span><span data-offset-key=\"fb6s5-104-0\"> customer<\/span><span data-offset-key=\"fb6s5-105-0\"> is<\/span><span data-offset-key=\"fb6s5-106-0\"> a<\/span><span data-offset-key=\"fb6s5-107-0\"> good<\/span><span data-offset-key=\"fb6s5-108-0\"> fit<\/span><span data-offset-key=\"fb6s5-109-0\"> for<\/span><span data-offset-key=\"fb6s5-110-0\"> specific<\/span><span data-offset-key=\"fb6s5-111-0\"> products<\/span><span data-offset-key=\"fb6s5-112-0\"> or<\/span><span data-offset-key=\"fb6s5-113-0\"> services<\/span><span data-offset-key=\"fb6s5-114-0\">.<\/span><\/p>\r\n<p><span data-offset-key=\"fb6s5-115-0\">\u27a1\ufe0fFinally<\/span><span data-offset-key=\"fb6s5-116-0\">,<\/span><span data-offset-key=\"fb6s5-117-0\"> credit<\/span><span data-offset-key=\"fb6s5-118-0\"> reports<\/span><span data-offset-key=\"fb6s5-119-0\"> can<\/span><span data-offset-key=\"fb6s5-120-0\"> help<\/span><span data-offset-key=\"fb6s5-121-0\"> businesses<\/span><span data-offset-key=\"fb6s5-122-0\"> better<\/span><span data-offset-key=\"fb6s5-123-0\"> understand<\/span><span data-offset-key=\"fb6s5-124-0\"> the<\/span><span data-offset-key=\"fb6s5-125-0\"> credit<\/span><span data-offset-key=\"fb6s5-126-0\"> history<\/span><span data-offset-key=\"fb6s5-127-0\"> of<\/span><span data-offset-key=\"fb6s5-128-0\"> their<\/span><span data-offset-key=\"fb6s5-129-0\"> customers<\/span><span data-offset-key=\"fb6s5-130-0\">,<\/span><span data-offset-key=\"fb6s5-131-0\"> allowing<\/span><span data-offset-key=\"fb6s5-132-0\"> them<\/span><span data-offset-key=\"fb6s5-133-0\"> to<\/span><span data-offset-key=\"fb6s5-134-0\"> tailor<\/span><span data-offset-key=\"fb6s5-135-0\"> their<\/span><span data-offset-key=\"fb6s5-136-0\"> credit<\/span><span data-offset-key=\"fb6s5-137-0\"> terms<\/span><span data-offset-key=\"fb6s5-138-0\"> and<\/span><span data-offset-key=\"fb6s5-139-0\"> offers<\/span><span data-offset-key=\"fb6s5-140-0\"> accordingly<\/span><span data-offset-key=\"fb6s5-141-0\">.<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">Both Experian and CIBIL credit scores play a vital role in 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.\u00a0<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"Did-you-know\"><\/span>Did you know?<span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">Razorpay Capital offers collateral-free loans via Line of Credit based on your personal transaction history. <\/span><span style=\"font-weight: 400;\">We don\u2019t stress credit scores as much as conventional lenders because we hope to achieve similar confidence in businesses through the quantity and quality of customer payments and payouts.<\/span><\/p>\r\n\r\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/line-of-credit\/?utm_source=Content&amp;utm_medium=Blog&amp;utm_campaign=All+You+Need+to+Know+About+Business+Credit+Score%3A+Experian+%26+CIBIL\">Get collateral-free loans<\/a><\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Maintaining a credit score is essential for a business to grow. Learn the differences between CIBIL &#038; Experian, along with their advantages to your business.<\/p>\n","protected":false},"author":151156539,"featured_media":4522,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437,3643],"tags":[3505,3446,3506],"class_list":{"0":"post-4519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"category-capital","9":"tag-cibil","10":"tag-credit-score","11":"tag-experian"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156539"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=4519"}],"version-history":[{"count":14,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4519\/revisions"}],"predecessor-version":[{"id":8134,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/4519\/revisions\/8134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/4522"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=4519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=4519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=4519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}