Credit Bureaus

Credit bureaus or Credit Information Companies (CICs) are in charge of tracking your credit usage, based on which the credit score is calculated. A credit score is a numerical representation or a score of how well you have managed your credit in the past. It helps the lenders assess your profile while reviewing your application for new credit.

In India's financial system, credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark, licensed and regulated by the Reserve Bank of India (RBI), play a crucial role. They collect, analyse, and maintain credit information for individuals and businesses.

Understanding how these Indian credit bureaus operate, their impact on financial decisions like loan approvals, and how to check your credit report is essential for every Indian to maintain a healthy credit profile.

Table of Contents:

• ⇾ List of Credit Bureaus in India
• ⇾ Differences Between the Credit Bureaus
• ⇾ Functions of Credit Bureaus
• ⇾ Role of Credit Bureaus
• ⇾ CIBIL Score vs Credit Score
• ⇾ Check Credit Score from Different Credit Bureaus
• ⇾ Credit Bureaus vs Credit Reporting Agencies
• ⇾ Credit Bureau Updates
• ⇾ Frequently Asked Questions

List of Credit Bureaus in India

In India, the credit score ranges from 300 to 900, making 300 being the lowest value and 900 the highest value. The 4 credit bureaus in charge of generating credit score reports are:

1. CIBIL

CIBIL is one of the oldest and widely preferred credit bureaus in India. It has a huge database and covers a large volume of retail borrowers and is used extensively by banks and large NBFCs for consumer lending decisions. CIBIL scores range from 300 to 900, and scores above 750 are generally considered good.

CIBIL also provides commercial credit reports for businesses.

2. Experian

Experian is widely known for its global acceptance and is part of the global Experian group. It offers consumer and business credit reports, fraud detection services, and decision analytics. It also offers a range of 300 and 900 in India and is increasingly gaining adoption among digital lenders and fintech platforms due to its flexible credit risk tools.

3. Equifax

Equifax is mostly known for its data analytics-driven solutions and is increasingly popular among individuals and businesses in India. It is newer compared to other long-established bureaus like CIBIL and Experian.

However, it is trusted by several banks and fintech lenders in India. It also offers industry-specific insights, such as delinquency trends, and its scoring models comply with RBI regulations.

4. CRIF High Mark

CRIF High Mark is known for its broad credit data coverage, particularly in microfinance, retail, and rural lending sectors. With a credit range between 300 and 900, its advanced analytics and inclusive database make it a valuable source for both consumers and lenders evaluating small-ticket or underserved borrowers.

Differences Between the Credit Bureaus

They operate under the regulation of the Reserve Bank of India (RBI). Below is a simple comparison table:

Although there are multiple options, CIBIL is the most reputable among Indian lenders. However, Experian is another highly preferred CIC due to its global reach and is mostly considered by international lenders.

Functions of Credit Bureaus

Credit bureaus have an important role in the financial system by collecting and analysing credit-related data to help lenders make informed decisions. These institutions act as trusted resources or proofs between borrowers and lenders, ensuring transparency and accountability in credit transactions.

The credit system depends on credit bureaus for its trustworthiness. Credit bureaus gather credit information to create credit scores while building comprehensive reports about how people handle their loans and payment responsibilities. The reports lenders use to evaluate risk before extending credit. Through their services, bureaus enable consumers to access their credit information while supporting both fraud detection and regulatory compliance throughout the financial ecosystem.

Role of Credit Bureaus

Credit bureaus are organisations in charge of credit-related activities—they collect, analyse, and maintain credit-related information about individuals and businesses. They play a crucial role in finance; lenders depend on them to assess the creditworthiness of borrowers.

Role of Credit Bureaus in Loan Approvals

Credit bureaus play an important role in loan approvals by providing financial institutions with accurate credit information.

Their impact includes:

• Loan Eligibility Assessment: Banks and NBFCs check credit scores before approving loans.
• Interest Rate Determination: Higher credit scores lead to lower interest rates and better loan offers.
• Risk Evaluation: Lenders assess default risk based on past repayment behaviour.
• Credit Card Approvals: Determines eligibility for credit cards and higher limits.
• Credit history mapping: Credit bureaus generate the credit report, which is done upon request. This includes all your past credit usage, which is used by lenders while analysing your profile.

CIBIL Score vs Credit Score

Although CIBIL score and credit score are often misunderstood as one, it is important to know the silver lining.

The full form of CIBIL is Credit Information Bureau (India) Limited. This is the credit score provided by TransUnion CIBIL, a type of credit score widely used in India.

A credit score, on the other hand, is a much broader term, which is the representation of the credit usage of an individual. In short, the CIBIL score falls under the broader category of credit score.

Check Credit Score from Different Credit Bureaus

To monitor your credit report and financial health, it is best to check your credit scores and reports regularly.

It can be done by using the following steps:

1. Visit the official website of the credit bureau (cibil.com, experian.com, equifax.com, or crifhighmark.com).
2. Choose to create an account or if you already have an account, please log in.
3. Enter your personal details like PAN card number, Aadhaar card, or mobile number for OTP verification.
4. Request a free credit report. Please note that most credit bureaus offer one free report per year.
5. You will receive the report in your registered email

You can review your credit history to check for errors, missed payments, or fraud alerts. Dispute incorrect information by raising a request with the respective bureau.

Credit Bureaus vs Credit Reporting Agencies

Credit bureaus and credit reporting agencies are often confused with one another, but they serve different purposes.

While credit bureaus collect, maintain, and analyse credit information from various financial institutions, a credit reporting agency is a broader term that includes any organisation that compiles and provides credit-related reports to lenders, businesses, and individuals.

In many cases, credit reporting agencies provide additional services that are beyond credit scoring alone.

Credit Bureau Updates

In January 2025, the Reserve Bank of India implemented some new regulations to enhance the accuracy and timeliness of credit reporting. Some of these include:

• Bimonthly Credit Reporting

Lenders are required to update credit bureau records every 15 days. This was done monthly previously.

• Standardisation for Asset Reconstruction Companies (ARCs)

The ARCs have to standardise their credit bureau reporting procedure in such a way that it aligns with other financial institutions. This includes mandatory membership with all four major credit bureaus—TransUnion CIBIL, Experian, Equifax, and CRIF High Mark.

• Enhanced Consumer Protection Measures

The credit bureaus are now required to send alert messages via SMS or email whenever a consumer's credit history is accessed or updated.

For consumers whose complaints are not resolved within 30 days, a compensation framework has also been established with a penalty of ₹100 per day beyond this period until resolution.