All About Credit Bureaus in India

A credit rating agency or CRA is an organisation that evaluates the creditworthiness of an individual along with their ability to payback the loan amount and other debts. These credit bureaus provide a credit score of individuals that help banks determine whether an individual is worthy of taking a loan based on his or her financial history.

Money is probably an essential factor in everyone’s life; however, not everyone is in a position to fulfil their financial securities. This is why you have banks and NBFCs (Non-Banking Financial Companies) to help you acquire the financial independence, determined by your capacity to pay. The credit industry is worth billions of dollars and offers credit to multiple individuals on a daily basis. This not only helps in meeting your financial need but also helps you to secure your dream material desire.

Credit Bureaus came into existence in the late 1980s and have ever since been instrumental in determining the nature and integrals involved in a loan. Each credit bureau vies to make life simpler for individual consumers and companies by providing a detailed analysis of their credit history.

There are six main Credit Bureaus of India registered under SEBI, namely:

• TransUnion Credit Information Bureau (India) Limited (or CIBIL)
• Credit Rating Information Services of India Limited (CRISIL)
• Equifax
• ICRA (formerly known as Investment Information and Credit Rating Agency of India Limited)
• CRIF High Mark
• Experian

Each of these bureaus is good in every way and there is no way to say which one is the best. However, CIBIL is the most prominent of the six. If you are Applying for Credit Cards in India, it is imperative that you know your credit score to help you get a better deal.

What is the Difference?

Transunion CIBIL

This is probably one of the most popular credit bureaus in India and is associated with a large number of NBFCs and Banks. CIBIL came into play in 2000 and has been steadily providing individuals a comprehensive report to help them acquire loans and fulfil their financial requirements. The individuals are scored on parameters ranging from 300 to 900, where 900 is the best and 300 is the lowest. Higher your score better are your chances of acquiring Credit Cards or loans.

If you are applying for loans or Credit Cards in India, CIBIL comes handy in asserting your creditworthiness. The products offered by CIBIL for individuals are – Market Insights, CIBIL TransUnion Score, Credit Information Report, and so on. For Companies, you can get Portfolio reports, CIBIL Bureau Analyser and CIBIL company credit information report, and so on. It takes approximately 7 days to process the report.

Experian

It was established in 2006 and granted a fully functional license in 2010. They, too, provide a credit rating from 300 to 900, where 900 is considered to be the best.

For individual consumers, you can get access to Experian credit information report that will help determine your credit history. For companies, you can acquire a Customer acquisition report, collection and money recovery report, customer targeting and engagement, data and analytics amongst others. It is cheaper to get an Experian report and takes approximately 20 days to process.

CRISIL

CRISIL has been in effect since 1987. Today, CRISIL is a global analytical company that rates companies, conducts detailed market research and provides policy and risk advisory services to its clients.

The company has expanded its breadth of operation to Singapore, Argentina, China, Hong Kong, UK, USA, and Poland, apart from India. The majority stakeholder in CRISIL is Standards & Poor, one of the biggest credit rating agencies worldwide.

Equifax

It was granted a fully functional license in 2010 and scores individuals from 1 to 999, with 999 being the highest. As a consumer, you can acquire credit information report, Equifax risk score, Equifax portfolio score, and so on. As a company, you are viable to get credit fraud and risk management report, portfolio management, complete industry diagnostics, and others.

ICRA

It was originally named as Investment Information and Credit Rating Agency and was listed on BSE and NSE in 2007. It is responsible for grading and providing ranking to mutual funds, corporate governance ratings, and performance ratings to real estate companies, construction companies, and hospitals.

CRIF High Mark

It is India’s sole comprehensive credit rating company that provides seamless services to every type of borrower. This includes MSMEs, commercial borrowers, retail consumers and microfinance borrowers, amongst others.

It was established in 2007 and was granted a license in 2010. Banks that issue Credit Cards are also covered by High Mark to evaluate their standing in the market. Its scores range from 300 to 850, with 720 and above being the highest and 640 and below being poor. For consumers, CRIF provides geo analytics consulting, High Mark credit report, portfolio management, and so on. For companies, you can get access to PERFORM score, High Mark credit report and portfolio management, amongst others.

These credit bureaus in India are responsible to assess an individual’s capacity to receive different types of loans such as Personal Loan, car loan, Home Loan or Credit Cards. Each credit bureau has a different scoring pattern and your rating may vary to an extent. However, it is advisable to take heed of the pattern that emerges while getting your detailed report.

It is best to inculcate good credit habits and improve upon it to easily assist you in acquiring a Credit Card in India or a loan. Focus on getting a credit free report from these credit bureaus to improve your chances of acquiring the financial backing that you want. Get in touch with our team of professionals at www.mymoneymantra.com to assess your capacity of acquiring Credit Cards or loans in India.

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