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Because you had applied for a credit card before, you were aware that a good CIBIL score is an important aspect of the borrowing process. So, you have improved your score before applying for a new loan.
However, this time, your lender checked your CRIF score instead of the CIBIL score that you were already familiar with. Which leaves you curious about the way credit scores work. Not sure of the difference between CRIF and CIBIL?Here’s what you need to know.
There are four different credit bureaus licensed by RBI. These Credit Information Companies (CIC) are specialised institutions that collect and maintain credit data of individuals and businesses in India. When you apply for a new line of credit, the lender shares your credit information with these agencies to generate a credit report.
Now, each institution uses the same parameters to generate your credit report – total credit, repayment history, outstanding debt, the period of your credit history, credit utilisation ratio, etc. However, the main difference lies in the process to calculate your credit score.
The Credit Information Bureau India Limited (CIBIL) is the authorised agency that calculates your credit rating. It is India’s first and the most recognised credit bureau. Your CIBIL score is a 3-digit number that ranges between 300-900. It is a summary of your credit history that reflects your creditworthiness. Generally, a score of 750 and above is deemed to be excellent and improves your chances of loan approval.
Additional Read - What is the Difference between CIBIL Score and CIBIL Report?
CRIF Highmark is another Credit Information Company, licenced to operate as a credit agency in 2010. The CRIF generates credit scoresfor all individuals and entities. The CRIF credit total ranges between 300 to 900, where again a score of 750 and above is considered to be excellent.
The CRIF Highmark generates Personal Credit Scores (PCS) for individuals and Business Credit Scores (BCS) for businesses. Besides, lenders can request a CRIF credit report of an individual or business before sanctioning the loan.
CRIF and CIBIL are both credit bureaus in India that provide credit scores to lenders. The main difference between them is the weightage given to different factors in their credit score calculations. CRIF places more emphasis on recent credit activity, while CIBIL considers a longer credit history. Both scores range from 300 to 900, with a higher score indicating better creditworthiness.
Here’s a quick comparison of the key aspects of CRIF vs CIBIL
|Parameters||CIBIL Score||CRIF Highmark Score|
|Credit total range||300-900||300-900|
|Online score availability||Available for free||Available for free|
|Criteria used to generate the credit report||1. Repayment history 2. Period for which you’ve been taking credit 3. Outstanding debt 4. Credit utilisation ratio 5. New credit 6. Credit mix||1. Current outstanding credit 2. Payment history 3. Debt to income ratio 4. Credit utilisation ratio 5. Credit mix 6. Period of credit history 7. New credit applications|
Additional Read - Myths Related to CIBIL Score
Since most lenders consider your score from various agencies before granting the loan, there’s never a reason to worry about any difference in the scores. As long as you manage your credit wisely and repay your debts on time, you can be sure to have a healthy rating that fetches you an affordable loan.
Having said that, if you want to perform a free credit score check, visit Tata Capital’s website and assess your score today!
Policies, Codes & Other Documents