Equifax vs CIBIL™ vs Experian vs High Mark

There are four credit information companies that are authorized by the RBI to operate in India. They are

Equifax
CIBIL™
Experian
High Mark

But what exactly is a credit information company (CIC) and how does it affect your ability to get a loan or credit card? A CIC collects credit information on every customer in the formal banking system from its member institutions (banks and NBFCs) and individuals. This information is exhaustive and could include detailed repayment history ( including missed or delayed payments), defaults, loan and credit card applications and corresponding approvals and rejections, total credit limit, age of accounts, status of credit accounts( whether Written Off, Closed, Settled or Current) among other information. As you can see, every detail of your credit history is noted.

Based on this raw data, the CICs generate a credit score and a credit report for individuals that helps both lenders and borrowers. Lenders using these products and services are able to have extensive data at their fingertips regarding the creditworthiness of a potential customer, which saves an enormous amount time and money during the credit approval process.

The individual borrowers too benefit since they are made aware of their credit situation and what they need to do to become loan eligible. Once individuals have accurate knowledge of their credit health, they can take charge of their finances and plan accordingly.

Similarities

Validity of scores

The credit scores from all four CICs are equally valid. There may be some variation in scores as each bureau has its own scoring model, but lenders too are aware of the differences between the bureaus and will keep it in mind when evaluating a customer’s eligibility.

All bureaus receive the same information

The RBI requires all lenders to send the same information to the credit bureaus. Thus the question of one bureau having more or less information than the others does not arise as they will receive the same data from their member institutions. Your credit score across bureaus is based on the information that is shared by lenders and you.

Below is a table on some of the main aspects of the four credit information companies.

	Equifax	CIBIL™	Experian	High Mark
Presence in India	Received license in 2010	Established in 2000	Received license in 2010	Received license in 2010
Credit score range	300-900. A score nearer 900, above 750, is deemed good, while a score at the lower end of the scale, towards 300 is a poor score.	300-900. A CIBIL™ score above 750 is seen as a good score, while a score closer to the lower end of the scale is seen as poor.	Moves to a similar scoring range from 300-900 from original range of up to 999.	Moves to a similar 300-900 range from earlier range.
Payment	Rs 400 for credit score and Rs. 138 for Basic Report. To be paid only by DD.	Rs 550 for one-time Credit Score and Report. (Can opt to buy a subscription for twice or four times a year.)Payment by NetBanking, debit card, cash card. You can opt to buy just your credit report for Rs. 159, to be paid by DD only.	Rs. 138 for Credit Report. To be paid by DD or NEFT or NEFT-enabled branch. Credit score and report can be bought online for Rs. 399.	Rs 399 for Credit Report with Score.
Time taken	Credit report will be sent on verification of authentication documents. Can take between 7 -10 days.	Credit report will be sent on verification of documents – can take up to 7 days. If online authentication is successful, details will be sent to your email address.	Online applications will receive a copy by email in real time after verification. Offline requests can take up to 20 days for verification.
Dispute Resolution	Yes. You can download and send the completed Dispute Resolution Form with the requisite authentication proofto the address listed on the website.	Yes. You can file a complaint online as well.	Yes, you can download and fill in the Query Application Form with the requisite authentication documents andsend to the address listed on the website.	You can email any queries about your CIR on the form available on the website.

FAQs

1. How do credit bureaus work in India?

Credit bureaus in India gather, maintain, and make credit information that includes repayment history, loan and credit card applications, corresponding approvals and rejections, total credit limit, the status of credit accounts, and so on.
They collect the details from member institutions, such as banks and NBFCs.
The credit information companies come up with a credit score and a credit report that are advantageous for both the lenders and the borrowers. The credit score indicates clearly to the lender how creditworthy the borrower is. The borrower is also able to know about his credit situation.

2. What are the similarities between the 4 credit bureaus - Equifax, CIBIL™, Experian, and High Mark?

The RBI or the Reserve Bank of India licenses all the four credit bureaus in the country.
Financial Lending institutions like banks and non-banking finance companies (NBFCs) send your credit details to all the credit bureaus.
Each credit bureau has their own algorithm, which they use to compute your credit score. Hence, credit scores from all the credit bureaus are considered as valid.
Although the algorithm to calculate credit score can be different for different bureaus, the five parameters that are taken into account while calculating the credit score remain the same.
Credit bureaus consider factors like repayment history, type of credit, credit length, credit exposure, and credit inquiries while computing the credit score.
The credit scores from two credit bureaus can be different, however, all the scores are valid. There may be a slight difference in credit scores from two different bureaus, usually a variation of around 50-60 points.

3. Who all can access credit reports

The following people can access credit reports:

Consumers (individuals and businesses)
Members such as:

Banks and financial institutions
Insurance companies
Collection agencies
Government Agencies

Employers and telecom service providers

Disclaimer

The 4 credit bureaus- CIBIL™, Equifax, Experian, and CRIF highmark offer credit scores in India. The points mentioned above are true for credit scores from any bureau, not just CIBIL™.