Credit Bureau I CIBIL | Equifax | Experian | CRIF Highmark | Difference between CIBIL V/S Equifax

 

People who have applied for loans in any bank or any financial institute have come across the term CIBIL. CIBIL is a very vital piece of information which decides if you will get a loan or be rejected.

Now the question is where does CIBIL come from?

 CIBIL comes from a credit bureau named TransUnion bureau.

Many clients who come to me, often complain that their loan has been rejected for low credit score or due to some error in their credit report. We then check the customer’s report and if we find any error, we fix it. But even after fixing it, they get their loan application rejected. Why does this happen?

The reason why loan application gets rejected even after CIBIL is fixed is that there is 3 more CIBIL credit bureau. 

1. Equifax

2. Experian

3. CRIF Highmark

 These above mention credit bureaux also provide CIBIL  reports to banks and financial institutes.  

So, the banks or financial institutes from which the customer got rejected may have checked the CIBIL report from the above-mentioned bureau.  This means customers' CIBIL from TransUnion is fixed whereas another CIBIL is left with an error.  Hence his/her loan may not be passed, unless and until the error is taken care of.

The credit report from any other bureau is called a credit bureau score WHY? This is because CIBIL is the first ever company that got a license to keep records for customers' loan history and generate a credit on basis of that.

The full of CIBIL is CREDIT INFORMATION BUREAU INDIA LIMITED. CIBIL got its license in the year 2000. Every bank manager from 2000-2010 used CIBIL to check CIBIL  reports for checking customers' CIBIL scores and passing the loan. 

In the year 2010, the other companies got licenses to collect customer data and generate CIBIL reports and scores. After this many banks and financial started checking CIBIL reports from the other 3 companies.

Now, what’s the difference between the 4-credit bureau report? Is there any difference??

The answer is NO. there is no difference in the parameter for making a CIBIL report. but yet you find a difference in scores in all CIBIL  reports. The reason behind the difference is the algorithm.

They go through the same process; they collected all data related to customer loan accounts from different banks and institutions. They see the payment structure, dues, settlement, written off, etc. every company has their own algorithm and hence the out of the report varies from one other.  

Some customers or banks or financial institutes prefer another institute report because the cost for the TransUnion CIBIL report is high then the other three credit bureaus.

 As per RBI rule, every credit bureau gives one free CIBIL report free of charge once a year. But if want to get more credit reports then you have to subscript to their site. The subscription charge depends upon the time period you like to get enrolled for.

 

To date, the bank and other financial institutes prefer TransUnion CIBIL. Many financial institutes and the banking sector check other credit bureau report but they also check TransUnion report too.

Some PSU banks will check Crif high mark report because in this report they get details about customers’ microfinance loan accounts and payments.

I have made a video regarding how to generate a free CIBIL report, you can check it.

During generating a CIBIL report from a different credit bureau, you will find some different processes.

 For example:

 In Crif high mark:  after filling the first page a link will be sent in your email.  Then from the link, you have to fill up the form and then submit the form.   You get the report within 48 hrs in your email account.

TransUnion CIBIL:  in this, you need to fill out the form, OTP will be sent and you get your report instantly. some times you have to go through a bit of length verification. Sometimes they verify account details.

 

I have made many YouTube videos regarding all kinds of CIBIL -related problems. please that I am providing you with a YouTube channel link. 

Read More:

1. 10 Ways to improve your CIBIL score. Best ways to improve your CIBIL score.

2. How often CIBIL Score is updated?

2. CIBIL Score Repair Agency near me.