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written by | April 11, 2022

Equifax Vs CIBIL Vs Experian Vs Highmark

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Table of Content


Credit information companies are financial institutions regulated by the Reserve Bank of India. They are responsible for collecting and retaining data related to the credit behaviour of individuals and businesses in India (CICs). Financial organisations such as banks and non-banking financing companies will check your credit reports before approving your application when you apply for a loan or credit card.

Credit information firms that are often based on credit bureaus are in charge of compiling a credit report. It is possible to get information about a person's credit history and capacity to repay debts via top credit bureaus in India that collect information from their membership (individual consumers and private lenders). There are presently four active credit bureaus in India, and all domestic credit bureaus must get licences from the Reserve Bank of India (RBI).

Following this information collection, these organisations use it to construct individual borrowers' credit reports and credit scores based on information obtained from various lenders and loan types. In India, there are presently four credit reporting organisations, which are as follows:

CIBIL, Experian, Equifax and Highmark.

Did you know?

Various credit bureaus create different credit scores for the same person.

How Many Credit Bureaus in India Are There?

The Reserve Bank of India has granted permission to four credit information businesses to do business in India. These are as follows:

  • Equi-fax
  • CIBIL
  • Experian
  • HighMark

Four Indian Credit Reporting Agencies Are Compared Below.

Variable 

CIBIL (TransUnion)

Equifax

Experian

Highmark (CRIF)

Impact in India

Granted a licence in 2010.

Founded in 2000.

In 2010, granted a licence.

In 2010, granted a licence.

A Possible Range Of Credit Scores

Within 300-900 - A score of 900, over 750, is considered excellent, while a number below 300 is deemed to be wrong.

Within 300-900 – CIBIL scores over 750 are considered excellent, while those around the lower end of this range are considered subpar.

The initial spectrum of up to 999 has been reduced to a comparable range of 300-900.

A matching 300-900 content has been moved from the initial scope.

Payments

138 for the Basic Report and 400 for the credit score. Only DD will be able to pay for this.

550 for a one-time report and credit score. Subscriptions for twice, even four times per year, are available. Internet banking, direct debit or prepaid cash card. Alternatively, you may pay 159 for a credit score, which you can only pay for using a DD.

Credit Report costs 138. Direct Deposit (DD), National Electronic Funds Transfer (NEFT) or an NEFT-enabled bank. A credit score and report cost is  399 when purchased online.

Cost of Credit Report along with score 399.

The Length Of Time Taken

Following the validation of the authenticating papers, a credit report is generated, and it might take anything from 7 to 10 days.

The credit report will be provided when the papers have been verified, which may take up to seven days. Once your online verification is adequate, you will get an email with the necessary information.

After being verified, online applicants will get a copy of their submission via email in real-time. Offline requests may take 20 days to be processed and verified.

 

Assertion Of Rights

Absolutely. The Dispute Resolution Form may be downloaded and sent to the address provided on the website with the necessary verification proof. 

Yes. An online complaint is also possible.

Query Application Forms are downloadable and completed on the internet, and they are sent to the actual address with the form and the required verification papers.

You may use the contact form to ask questions regarding your CIR on the web page.

Parallels Between Credit Reporting Agencies and Other Businesses

According to the Reserve Bank of India, all four credit bureaus in India have been granted licences by the Central Bank of India. There are some parallels between credit reporting agencies and other businesses.

All of the three major credit bureaus in India receive information about your credit history from various lenders, including banks and non-banking financing companies (NBFC). They make no distinction between the numerous credit reporting agencies and give them access to all of your credit information. Furthermore, each of the three major credit bureaus uses a different methodology to determine your types of credit scores than the other two, making it difficult to compare them. 

As a result, credit reports obtained from any three major credit reporting companies are valid and accurate. The five factors used to establish a credit rating are the same regardless of which agency is used to create the score. However, different credit reporting agencies use different algorithms to do so. 

An individual's credit score is calculated by taking into account reimbursement history, type of credit, length of credit history, amount of credit exposure and the number of credit inquiries. Credit bureaus in India use these factors to calculate a credit score for each individual. 

The importance of understanding that credit scores from two different credit reporting companies may differ but that both are valid cannot be overstated. The fact that two credit rating agencies have ratings that are slightly different from one another is not all that common. In many cases, there is a 50-60 point difference between the credit scores of banks and non-bank financial institutions (NBFCs).

Also Read: Know All About your CIBIL Score and Report

Consumer Financial Database With Several Advantages

1. Reduced Lender's Risk

Each customer's inquiries and trade lines are accessible to lenders for an extended time, allowing them to assess the creditworthiness of each individual. 

They will then have the opportunity to adjust the level of risk they are willing to accept. Profitability and revenue will be adversely affected by a company's adoption of an intelligent risk management strategy supported by extensive data collection.

2. Judgement Call Gets Quicker

The result is that decisions are made in a shorter amount of time. Any lender can decide about their loan if they access the information provided above. 

A consumer's credit score provides information to a lender about the likelihood of a consumer repaying a loan or credit card debt. The Credit Information Report provides the lender with both short and long-term perspectives. With this, the lender can conduct a more thorough analysis of the borrower and make an educated decision more quickly.

Also Read: What is CIBIL Rank & Company Credit Report?

3. Asset Monitoring Made Simpler

When lenders have access to a database shared by all of the participating institutions, it is much easier for them to keep track of the credit performance of their borrowers consistently.

4. Identification

Because of the large amount of data in the client list, it is much easier to identify a particular client. To validate Permanent Account Number (PANs) and Aadhaar cards, Equifax's database is linked to Indian databases such as the National Statistics Development Laboratory (NSDL). A more efficient authentication process is achieved as a result of this improvement.

Conclusion

Aside from the general public, specialised borrowers benefit from the credit facility. They are made aware of their credit situation and what they must do to become loan eligible. Individuals who have a clear grasp of their financial situation are better positioned to take charge of their types of credit scores and make sound financial choices.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Is it possible to get a free credit report?

Ans:

Obtaining a free credit report is an integral part of maintaining decent credit scores, and it can affect everything from getting a new credit card to getting a job. 

  • To get a copy of your report, visit one of the three major credit reporting agencies. 
  • Fill out the form below and provide your name, social security number, birth date and address to request yours. 
  • These details are matched to your files to verify your identity. You can order a copy of your report from one or two of the major credit bureaus or even three. You'll need to answer questions about financial life, such as whether or not you have applied for a loan or a mortgage.

Q: How frequently do lenders/creditors notify the credit bureau in India?

Ans:

The truth is that every lender's reporting schedule is different. Lenders generally transmit account information to the bureaus once a month, and not all creditors update on the same day. It is essential to know that your score can change every day, and the credit bureaus do not receive all of your account information at once. A single late payment is reported to all three bureaus in some cases. But it is still worth contacting your lender to find out how often your lender sends reports.

Q: Are all four credit bureaus' reports and types of credit scores valid?

Ans:

 Credit reporting is voluntary, and data furnishers can opt to share their information with one bureau or none. Major lenders, however, are required by law to report to all four bureaus. Although consumers may not understand the dispute process, disputing an item in one report may be deleted from the other two. Therefore, it is essential to review all four reports carefully. You should also be aware of the differences between the reports and know your rights.

 

Q: Why do various credit bureaus in India create different credit scores for the same person?

Ans:

The information contained in your credit report is different from bureau to bureau. It results from several factors, including how your creditors report and what they do to your score. Since most creditors must pay to report to all three bureaus, they may not report the same information to all three. It means that your type of credit score can be affected by changes in your debt history, even if you have had the same debtor for years.

 

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.