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Credit bureaus in India – Top 4 Credit Agencies in India

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In today’s world, most of the transactions conducted by people are through an online medium involving banks and other entities. Hence it is very much essential to make sure that a person is very well known and kept track of so that they don’t misuse the funds provided by these institutions for their need. Thus, some agencies help to keep this and make it easier for financial institutions.

What are Credit Bureaus?

In simple terms, Credit Bureaus can be explained as an organization that collects all the data about credits, debts, and bills paid by an individual over time. This data is analyzed and studied well to see if an individual pays their due amount in time. This helps to understand if an individual can be trusted financially, and thereby the financial institutions can lend money to an individual on the basis of this data. 

If any financial institutions or individuals want this data, they can get it by paying a small nominal fee to the credit bureau agency. However, it is to be noted that this should not be a basis on which any organization should depend while giving out money to any individual. This is just for reference and safekeeping to establish an individual’s trustworthiness.

What is Credit Score?

A credit score can be considered a number used to determine an individual’s trustworthiness in regard to financial words. Mostly this number is in the range of 350 to 850, and the higher the score, the better the score. This score is taken by financial institutions while giving out loans or credits, and if the score is better, the chances of getting better offers from the institutions.

Top Credit Bureaus in India 

Credit Bureau agencies have been running since the early 19th century; however, in the year 2000, the Reserve Bank of India approved them, and these agencies now operate under the SEBI (Securities and Exchange Board of India) guidelines.

Experian 

Experian is one of India’s top Credit Bureau agencies, which keeps a tab on credit reports of large groups of people. The data from Experian has been said to be of good quality and can be used by both enterprise businesses and individuals. Experian started its venture in India in 2006 and has quickly made its name in the top Credit Bureaus of the country. The amount for obtaining data from Experian is INR 550, and the process takes as much as 20 days.

The Credit Score rating by Experian is in the range of 300 to 900, wherein 900 is considered the most trusted individual in terms of finance. 

CIBIL 

Trans Union Credit Information Bureau (India) Limited, also commonly known as CIBIL, is India’s largest credit bureau agency that has data on many people. Many big and small institutions also depend on the credit rating given by CIBIL before issuing a credit to an individual. CIBIL was established in 2010 and got its license as well from RBI. The credit rating in the CIBIL bureau ranges from 300 to 900, wherein a score above 720 is considered quite good. CIBIL keeps a tab on individuals as well as big institutions as well with their credit ratings. The nominal fee for obtaining a credit report from CIBIL is INR 550.

CRIF High Mark 

Another top credit bureau in India is CRIF High Mark which has been operating since 2010. The credit rating score in CRIF is in the range of 300 to 850, and the nominal fee for obtaining data from this organization is INR 399, which includes GST as well. CRIF High Mark has data on individuals, large and small industries, and commercial borrowers.

Equifax 

Equifax is one of the oldest credit-giving companies, established in early 1899 and became a credit bureau in 2010 after obtaining its license from RBI & one of the biggest names worldwide and is said to have data of more than a billion people.

The nominal fee for obtaining data is INR 400, including the GST charge as well. The Credit Score rating ranges from 1 to 999, wherein 999 is the highest and most trusted.

Overall, credit bureaus help many financial institutions and individuals to learn about their customers before they can offer monetary help. This also helps an individual to secure faster loans as a better score. The better chances are in securing loans at good interest rates as well. All of the 4 credit bureau agencies are recognized by RBI and follow all the necessary guidelines.

How to Improve your CIBIL Score Immediately?

Company Credit Report (CCR) – Improve CIBIL Rank & Report for Company

How to Check and Improve CIBIL Credit Score for Business Loan?

Can Business Loan affect your Personal Credit Score?

CIBIL Score for Business Loan – Check Minimum Credit Score

Credit Bureaus in India FAQs:

1. Are credit bureaus regulated in India?

Yes, credit bureaus in India are regulated by the Reserve Bank of India (RBI) and have to follow a set of guidelines given out by SEBI (Securities and Exchange Board of India).

2. How do contact credit bureaus for data of an individual or an organisation?

Credit bureaus can be easily contacted by visiting their official website and getting the contact info (email or phone no) or visiting their offline addresses as well.

3. How do credit bureaus make money?

One primary means of making money for credit bureaus is selling the raw data they have accumulated. Other methods include – providing analytics, helping companies in coming up with a decision and marketing services.

4. Can one make important financial decisions from data they got from credit bureaus?

Most of the time, data obtained from credit bureaus is good and can be trusted. However, one should do their own research before lending or investing money.

5. How to notify credit bureaus of death so that the account for that individual is closed?

One of the easiest ways is to email the individual’s death certificate directly to the credit bureaus, wherein they will cross-check it, and if found genuine, they will close the account of the individual.

6. Which are the top credit bureaus in India?

The top credit bureaus in India are CIBIL, Experian, CRIF High Mark and Equifax. All of these credit bureaus are approved by RBI.

7. Does having a good Credit Score help you secure an easy loan?

Yes, having a good Credit Score will help you get loans easily as the banks and other financial institutions would find you trustworthy seeing your past records.

8. What is a Good Credit Score?

This depends upon the agency from which your report is purchased. Most the agency have a rating from 300 to 900, and a score of more than 720 is considered quite good.

9. Can credit bureaus remove negative Credit Scores?

No, the negative Credit Score stays on the record for at least 7 years and then it can be removed provided the user has a good Credit Score.

10. Are credit bureaus open on weekends?

Although the offline offices are not open on weekends, any support case raised online will be assisted as they are available 24*7.

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