When you submit your loan application to a financial institution, you make this decision based on information on the interest rate, tenure, and repayment amount. Similarly, the financial institution studies your application and financial history before accepting or rejecting your loan request.
They look into your credit score, in particular. A credit score is an indicator of your creditworthiness. If your past includes financial defaults, your credit score is low, and if you’ve maintained a good financial history, it will be high. Financial institutions are naturally more inclined to grant your loan application if you have a high credit score.
CRIF Highmark is one of the six recognised credit reporting agencies in the country. Here, we’ll discuss everything you need to know abou CRIF.
What is CRIF Highmark?
The CRIF score’s full form is CRIF Highmark. CRIF Highmark is one of the most well-known credit information companies (CICs), with operations in Europe and India. It was established in 2007 and received its license to function as a recognised credit bureau from the RBI in 2010. Its members include banks, NBFCs and other financial organisations.
According to a mandate issued by the RBI, members must disclose all credit-related information of their customers to their credit agencies. Based on this and other credit-related information, CRIF estimates the creditworthiness of an entity and allocates a CRIF Highmark score.
CRIF consolidates this information and then prepares a report. A CRIF Highmark credit report means a consolidated document on a person or business’s credit behaviour and repayment history. This helps prevent future loan repayment defaults and credit fraud.
CRIF Highmark credit score – an explanation
Based on an entity’s credit information, CRIF allocates it a credit score. The CRIF score ranges from 300 to 900. It can be divided into the following four distinct categories.
- Very low
A CRIF credit score ranging between 300 to 500 falls into this category. It indicates a bad credit track record with a high risk of loan default or credit fraud. A credit score between 300 and 500 reduces an individual’s chances of getting a loan substantially.
This category includes credit scores between 500 and 650. This score discourages financial institutions from granting a loan as it indicates a chance of default in loan repayment.
A CRIF credit score ranging from 650 to 750 falls into this category. Individuals with credit scores in this category become ideal candidates for loans as they have a strong credit history and a low risk of loan repayment default.
This is the highest category, with credit scores between 750 and 900. Individuals with these scores have high creditworthiness, and financial institutions accept their loan requests easily.
Having an excellent credit score by CRIF means enjoying various benefits throughout your financial journey. Let us look at some of them.
- You can get your loan approved quickly with the best available interest rates.
- You can increase your credit card limit to meet your expenses more efficiently.
- With high creditworthiness, you are better positioned to negotiate loan terms with your financial institution.
- Many companies include credit reviews in their employee background checks. A high credit score shows you good light and increases your chances of landing your dream job.
A strong score by CRIF means a better financial future. To improve your score, you can pay your loans on time, keep your credit utilisation under 30% and limit your credit mix.
Points to note about the CRIF Highmark credit score range
For your benefit, we have consolidated a list of the CRIF score range’s notable features.
- CRIF Highmark scores are of two kinds. Business Credit Score for entities in the commercial sector. And Personal Credit Score for individuals.
- The parameters considered while calculating your CRIF credit score range from cred card applications, credit utilisation ratio, and credit mix to the length of your credit history.
- A CRIF score is a three-digit number between 300 to 900, with 300 being a poor score and 900 a good score.
- The CRIF score’s full form is the CRIF Highmark score which is a direct indicator of your creditworthiness.
- You can receive one CRIF credit score for free in a year. All reports subsequently are chargeable at a rate of Rs 399 annually. This aligns with RBI’s 2017 mandate directing credit bureaus to offer one free credit report annually.
- CRIF Highmark credit score can be checked online.
How to apply for a CRIF Highmark credit score?
Individuals and business entities can only view their personal CRIF scores, while financial institutions extending loans are granted access to their applicant’s CRIF reports. You can apply for your CRIF Highmark score by following the steps below.
- Open the CRIF portal online
- Click on ‘check your free credit score.’
- You will be directed to a new browser window. Details such as your full name, ID proof, mobile number, email ID, etc., must be filled in
- Next, you will have to answer a security question based on your financial records
- Subject to the correct answer, you can download your CRIF credit report
You can access your CRIF Highmark credit score in a matter of minutes from their online portal.
The CRIF score’s full form is CRIF Highmark. Financial institutions rely heavily on a CRIF Highmark report to help them decide whether loan applications can be accepted. By following the steps mentioned above, you can check your credit score and improve it for smoother loan acceptance in the future.
Furthermore, if you notice any reporting errors, you can also get them corrected. CRIF Highmark is one of the country’s most reliable credit score agencies, and having a high score from CRIF means a faster loan application clearance. Similarly, a low score from CRIF means a high chance of your loan or credit card application getting rejected.
Tata Capital offers personal loans at attractive interest rates so that you can prepare for your tomorrow without sacrificing your today. For more details, visit Tata Capital’s website today!