“Who checks my credit score?”
“What is the meaning of a credit report?”
“What is CIBIL?”
“How can I get a free credit report?”
“Tips to improve my credit score?”
If the above-mentioned questions have been worrying you, then you are at the right place to get your questions answered. My name is Loan Singh and I welcome you to the Loan Singh Finance Blog.
Today, we look at the different credit bureaus operational in India. They are the “Upar wala sab dekh raha hain”, when it comes to your credit application.
What is Credit Bureau?
It’s not your fault if you can identify only CIBIL as a credit information company based in India. CIBIL is widely used and is also considered to be the best. CIBIL, as a credit information company simply collects credit information from banks and credit institutions. This credit information pertains to customers who own credit accounts in various banks and credit institutions.
How does a Credit Bureau work?
Credit information companies (CIC) or credit bureaus are specialized financial institutions that create a credit report and a corresponding credit score. This score is based on the credit information they receive from different credit institutions such as:
- Credit card providers
- Insurance companies
- Collection agencies
Every customer’s credit information is sent to the credit bureaus. The credit bureau’s generated report aka Credit Report, is then used by the credit lender or credit guarantor to decide if the credit/loan applicant’s request can be approved or not.
Credit Report in India
This report contains your financial information along with your
- Your personal information
- The number of your credit accounts
- Your repayment history
- Any credit defaults
- Number of your new credit application attempts
- Corresponding application approval or rejections
- Total credit limit allotted and availed
- Duration of each credit accounts
- Your credit account status’ (written off, settled, current or closed)
- Outstanding loan amounts, if any
Credit Score in India
Credit score is a range that usually falls between 350 and 850. The higher the credit score, the better are your chances of personal loan approval. The report is crucial in getting an insight into the applicant’s credit history.
The report and score save the lender, time and effort, while evaluating fresh credit requests. Lending institutions adopt a CIBIL or Experian check on a borrower. This is because any lending institution needs to embrace risks in order to provide loans to an individual especially for unsecured loans which involve no collateral. The lenders need assurances that you will repay the loan over the approved period. This assurance is received via a positive and strong credit score.
You, as a borrower, are also benefited because you are made aware of your credit situation and hence take charge of your personal or financial choices as per the report.
Free Credit Score Check
Now, there are many resources available online that promise a free credit score check. But, it is recommended you approach the credit bureau directly to get a copy of your credit report. This is because, in case of any discrepancies, you can get it sorted directly with the bureau. CIBIL provides you with one CIBIL report and CIBIL score per year.
Credit score plays a crucial role in your financial freedom. Being responsible for the use of credit, timely repayments of EMI and balancing the number of loans and credit cards will ensure a good credit score. This will also prevent any financial hiccups along the way.
Does Loan Singh check credit score?
Yes, Loan Singh checks your credit report while evaluating your online personal loan application. You are applying for the loan from the confine of your home, never having to come see our genuine- hardworking-team-filled office. We only ask for your Aadhaar, PAN and Bank statement. Where else can you expect a much easier process in the digital economy world?
Your credit score indicates how prompt you have been with your past credit obligations. Availing a personal loan via Loan Singh is advantageous because of the complete online process and minimal involvement of paperwork. So, no time is wasted in cross verifying any paperwork. The personal loan amount, along with interest rate, is calculated for the entire tenure. The idea is to not strain you with heavy credit but to make sure that your salary and savings permit you to avail credit.
Can you handle the wait-time for a personal loan from banks? The unending documents and paperwork will test your patience anyway. Trust me when I tell you that an online loan is the best solution for you in order to get quick funds without any delay. Simply go to www.loansingh.com and apply for an online personal loan for a number of purposes.
Credit Bureaus in India
There are 4 credit information companies or credit bureaus in India. They are authorized by the Reserve Bank of India. These are:
CIBIL – Credit Inform Bureau (India) Limited, which is a part of US based ‘TransUnion’
Also known as TransUnion CIBIL, it is the first Credit Information Company of India. It has a strong member base of close to 1000 entities which include private and public-sector banks, NBFCs, house-finance companies among others.
It maintains credit information of close to 750 million trades across divisions such as micro finance institutions, commercial bureaus and consumer bureaus. The CIBIL score is the collective score generated as a combination between the three divisions. Its score ranges from 300 to 900.
Experian (based out of Ireland)
Jointly operated by companies such as GUS Holdings BV (Netherlands), Axis Bank Limited, Union Bank of India, Federal Bank Limited, Indian Bank, Sundaram Finance Ltd, Punjab National Bank, Magna Fincorp Ltd and VIC Enterprises Pvt Ltd, Experian was started in 2006 and was the first CIC to receive a license under the CIC Act of 2005, in the year 2010. Its score ranges from 330 to 830.
Equifax (based out of the US)
Founded in the state of Atlanta, USA and registered under the CIC Act in 2010, Equifax is one of the largest credit agencies in the US. It keeps detailed credit information for small, medium and big organizations alike. It is also known to provide a detailed and insightful credit report.
CRIF High Mark (Mumbai based)
The Highmark or High Mark Credit Information System was started in 2005. They offer credit reports and credit scores to individuals and members alike.
You must also remember that, all the above bureaus receive the same information and all 4 are equally valid. Their scores may differ based on the respective scoring models. Therefore, a word of advice to the lenders is to be aware of these differences before deciding on the eligibility of the credit applicants.
Too much credit bureau jargon to handle? Check the table below to understand better.
About Loan Singh
Loan Singh is a digital lending platform that prides in providing online personal loan or unsecured personal loan to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan. We provide a loan with the best personal loan interest rates. The instant funds, or instant loans, are loans between Rs.50,000 and Rs.5,00,000 taken for purposes such as:
- Home improvement loan/Home renovation loan
- Marriage loan/ Wedding loan
- Medical loan
- Used vehicle loan
- Consumer durable loan
- Vacation loan
- Debt consolidation loan
- Credit card refinancing loan
- Job relocation loan
- Travel loan
- Festival loan
- Shopping loan
- Lifestyle loan
You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement, PAN, and Aadhaar for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Finance Blog’ is one of the best finance blogs in India.
Loan Singh’s Online Presence
Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. You can find us on Loan Singh Facebook, Loan Singh Twitter, Loan Singh YouTube, Loan Singh Pinterest, Loan Singh Instagram, Loan Singh LinkedIn, Loan Singh Blogarama, Loan Singh Google Review, Loan Singh Medium, Loan Singh Reddit, Loan Singh Tumblr, Loan Singh Scoop It, Loan Singh Storify, Loan Singh Digg and Loan Singh Blogger.