Lenders use a credit score as a key element for determining a borrower’s credibility. Most people evaluate their CIBIL score before applying for a credit card or loan. However, have you ever questioned who gives us access to that credit information? Several credit bureaus issue separate credit reports in India. Learn more about them by reading on.
These Indian credit bureaus assign a CIBIL Score to a person or institution after gathering their financial data. When a person has a strong credit score, lending organisations are eager to issue loans without fuss and at lower rates. A good credit score is necessary so one can easily receive loans or access credit limits quickly at reasonable interest rates whenever the need arises.
Indian Credit Bureau Organisations using Credit Information
A credit bureau is an organisation that gathers and examines information on a person’s or an institution’s credit-related activity. These consist of borrowing loans and their repayments, as well as using credit cards, overdrafts, etc. This analysis may also include information relating to income taxes, on-time utility bill payments, and other topics. Lending firms, data gathering corporations, money collection companies, and other organisations provide the information for collection.
The purpose of gathering and evaluating such information is to develop a profile of the person’s creditworthiness, including default history, repayment behaviour, and complete financial behaviour (debt to income ratio).
The Reserve Bank of India has authorised three entities to conduct this business in India. They are CRIF High Mark, Experian, and CIBIL. Using the information obtained from the money lenders, the Credit Information Companies calculate the CIBIL score and credit report for the comfort of lenders and borrowers. Lenders use the credit report to evaluate a borrower’s creditworthiness. Borrowers can use the CIBIL score app to raise their credit score and strengthen their negotiation position when dealing with offers for individual loans and credit cards.
CIBIL Credit Report
CIBIL was founded in 2000 and is today one of India’s top credit information companies. It offers services to borrowers who want to understand their credit history better. With the assistance of detailed data, it enables people to make wise financial decisions. The CIBIL score scale goes from 300 to 900. T Once a year, those who register on the official website of the CIBIL score app can obtain a free CIBIL credit report. The processing of your CIBIL credit report can take up to 7 days. If there is an issue with your credit report, users can submit an online application to receive their free CIBIL credit score.
CRIF High Mark Credit Report
Following the establishment of CRIF in 2007, the credit bureau was granted the licence in 2010. It supports a broad spectrum of clients with data management, credit data, data analytics, and software solutions. In High Mark, a good credit score is something above 720. Credit scores range from 300 to 850. To examine their FICO credit report, one can manually or online fill out the credit report application form and mail it to the High Mark office.
Experian Credit Report
Experian was founded and opened in 2010 for business in India. It is a significant credit bureau that gives your credit report and monitors financial transactions. Experian provides credit reporting services to individuals and businesses and participates in other financial-related activities.
Credit scores in Experian credit reports range from 300 to 900 points. A good credit score is 740 or higher. One can apply the credit report request form manually or online and mail it to the Experian office to examine their Experian credit report. Usually, it takes 10 days to generate an Experian credit report from the date of application.
Credit bureaus in India examine financial transactions, overdue loans and their payments for individuals and corporations. Based on this study, the bureaus then assign credit ratings or scores. Before approving a loan request, lenders assess the applicant’s credit score. Each business obtains credit data and client information from independent sources. Thus each bureau’s credit scores are unique.