When you apply for loans and credit cards, or in certain cases, purchase insurance products, your creditworthiness makes a difference in helping you procure the products and services. In India, the Reserve Bank of India (RBI) has licensed credit bureaus to collect and maintain your credit information. The credit bureaus generate a credit score based on your credit history. This three-digit score is an indicator of your creditworthiness. Currently, the two prominent credit agencies in India responsible for credit management are the Centre for Research in International Finance (CRIF) and the Credit Information Bureau India Limited (CIBIL). Read on to learn more about these credit bureaus and compare CRIF vs CIBIL.

CRIF vs CIBIL: What do the credit scores mean?

Before learning about the difference between CIBIL and CRIF credit scores, let us understand what they mean.

CIBIL credit score

The CIBIL credit score is calculated by India’s premier credit bureau – TransUnion CIBIL. Incorporated in the year 2000, CIBIL commenced its services as a consumer credit bureau in 2004 and became a commercial service entity in 2006. Banks and Non-Banking Financial Institutions (NBFCs) collect CIBIL credit scores to verify the repayment capacity of their applicants before approving funds on credit.

The CIBIL score is one of the many details present in the Credit Information Report (CIR) that CIBIL generates. The CIR reveals your past credit behaviour to prospective lenders to help them determine your eligibility for credit, interest rates, discounts on services, and other terms. The CIBIL credit score ranges between 300 and 900. A score close to 300 reflects a poor credit history, while anything above 750 is considered good for attracting competitive offers from lending institutions.

CRIF highmark score

The CRIF High Mark score is generated by the credit information and risk management company CRIF. Formerly known as High Mark Credit Information Services Private Limited, this entity was renamed CRIF High Mark, officially commencing its bureau operations in March 2011. CRIF High Mark generates Personal Credit Scores (PCS) and Business Credit Scores (BCS) for individuals and businesses, respectively. Similar to CIBIL, the CRIF High Mark score ranges between 300 to 900. Generally, a score of 750 is regarded as excellent for acquiring credit.

CRIF High Mark covers various borrower segments, including Micro, Small, and Medium Enterprises (MSME), commercial borrowers, microfinance companies, and retail consumers. It holds one of the largest databases of individuals and companies. With sophisticated algorithms designed to handle complex data, CRIF offers credit information, insights, analytics, data management, and software solutions to financial institutions.

CRIF score vs CIBIL score: The key differences

The prominent points of difference between CRIF and CIBIL are as under:

Stay protected with general insurance in India

Besides playing a pivotal role in helping you procure loans, CIBIL and CRIF scores are also considered for general insurance investments in India. Insurance providers typically believe that the better your credit score, the lower your chances of raising a claim. Since you are less likely to file claims, you can enjoy discounts on your insurance premiums. Also, investing in general insurance in India is considered responsible financial behaviour, which positively impacts your credit score, and by extension your credit borrowing abilities. As such, you must ensure your credit score is always in the highest range and take the necessary measures to maintain an excellent score of 750+ at all times.

FAQs

CRIF and CIBIL scores are both renowned credit agencies. In general, they work the same way in analysing your credit behaviour. The difference lies in the parameters and approach used to gauge your creditworthiness. So, the decision of which is better between CRIF score vs CIBIL completely depends on the personal preference of the lending institution.

No, even though the credit score range is similar, CRIF and CIBIL scores are not equal. They use different data sources and scoring models, which results in potentially different scores for the same person.

To boost your low credit score, you can pay your bills and credit card dues on time and avoid accumulating excessive debt.

Yes, you can. You can contact the respective credit agency, provide evidence of error, and request a correction. The credit agencies shall investigate the error and update your report with accurate information if applicable.

Yes, they do. Both CRIF and CIBIL source your credit information from recognised banks and financial institutions and follow legal guidelines. As a result, confidentiality and protection of your credit data are maintained.