What are the 4 CICs (Credit Information Companies) in India?

In India, when you apply for a loan, banks or NBFCs check your creditworthiness by obtaining your credit information from one of the four Credit Information Companies (CICs) licensed by the Reserve Bank of India: TransUnion CIBIL, Equifax India, Experian India, and CRIF High Mark. 

Each of these CICs collects and maintains your credit history, from loans, credit cards, repayment behaviour, defaults, and more, and uses this data to create standardised credit reports and scores. Lenders use these reports to assess your risk profile and decide whether to approve a loan.

In this blog post, we shall learn how each CIC operates and how they help to stay informed, improve creditworthiness, and make smarter financial decisions.

What is a Credit Information Company?
 

Credit Information Companies (CICs) are organisations that keep track of loans and credit information of both individuals and companies. They mainly collect loans, credit cards, and repayment history data from multiple sources, including banks, financial institutions, and other lenders, to generate credit reports and ratings.

Before giving you a loan or a credit card, banks and other financial organisations evaluate your creditworthiness using these CIC reports and scores. 

The Credit Information Companies Regulation Act, 2005 (CICRA) and RBI guidelines govern CICs in India, and they are licensed by the Reserve Bank of India. Every credit institution, including banks, is required by Section 15 of the CICRA to be a member of at least one CIC.

Top 4 Credit Information Companies in India

There are four credit information companies currently registered with the RBI. Here is the detailed information about each one of them:

1.    Credit Information Bureau (India) Limited (CIBIL)
Previously known as Credit Information Bureau (India) Limited, TransUnion CIBIL Limited is a well-known CIC that maintains credit records for more than 100 crore people and companies worldwide. TransUnion CIBIL was founded in 2000, making it the first credit information firm in India.

●    CIBIL provides a credit score, known as the CIBIL Score, which ranges from 300 to 900.
●    The institution has more than 5,000 members, including banks from the public and private sectors, housing financing firms, and NBFCs (non-banking financial institutions).  
●    TransUnion determines the CIBIL score, a key measure of consumer creditworthiness, and also maintains one of the biggest consumer credit databases. 
●    Additionally, the organisation creates CIBIL Ranks, CIBIL Commercial Reports, and Credit Information Reports (CIRs) for commercial entities.

2.    Equifax Credit Information Services Private Limited (ECIS)
Established in 2010 and based out of Mumbai, this licensed credit information company is regulated by the RBI under the CICRA, 2005.

●    Equifax India provides a credit score ranging from 300 to 850 and tracks loan accounts, late payments, and credit utilisation of borrowers.
●    ECIS is a joint venture between global leader Equifax Inc. and six Indian financial institutions. 
●    This CIC provides credit reports, credit scores, fraud detection, and risk management services to individuals and businesses. With these services, banks, NBFCs, or other lenders can make informed decisions for responsible lending and ensure that borrowers get sufficient financial support for their urgent needs.

3.    Experian Credit Information Company of India Private Limited
In order to preserve credit data, Experian, a credit bureau in India, works with more than 2900 financial institutions, including banks and NBFCs. 

●    The Experian credit score ranges between 300 to 900, 900 being the highest.
●    In 2010, Experian became one of the first credit bureaus to be licensed under the Credit Information Companies (Regulation) Act (CICRA) 2005. 
●    Owing to its innovative approach, Experian was named one of the "World’s Most Innovative Companies" by Forbes magazine in 2014. Experian provides marketing services, analytical tools, and credit information in addition to credit reports and scores for both individuals and corporations. 
●    While the credit score shows your creditworthiness, the organisation's credit reports provide an in-depth review of your credit history. Additionally, Experian offers analytics, identity verification tools, and fraud detection services to help companies manage credit risk.

4.    CRIF High Mark Credit Information Services Private Limited
Another leading credit bureau of India is CRIF High Mark Credit Information Services Private Limited, licensed by the Reserve Bank of India (RBI) under the Credit Information Companies (Regulation) Act, 2005. 

●    The CRIF High Mark credit score in India ranges from 300 to 900.
●    This CIC was founded by Dr. Anil Pandya in 2005, with its headquarters in Mumbai and began its operations in 2011. 
●    The organisation is a collaboration between CRIF, an Italian business, and a number of Indian financial institutions, such as SIDBI, Punjab National Bank, and State Bank of India.
●    Be it microfinance, retail, MSMEs, or commercial entities, CRIF High Mark offers various credit information services that include credit reports, scores, decision-making analytics, and risk management solutions. These services help lenders evaluate the creditworthiness of borrowers and manage risk effectively.
●    The database provided by CRIF High Mark supports over 4,000 credit institutions, including banks, insurance companies, NBFCs, and telecom service providers. 

How Do Credit Information Companies Work?

The Credit Information Companies (CICs) are central repositories that gather, store, and update credit data of individuals and businesses every time they apply for or repay a loan or credit card. 

Afterwards, these CICs analyse this credit data to make credit reports and scores that show the repayment capacity and creditworthiness of the borrowers. The CICs do not only store credit information, but they also use it for advanced analysis to identify potential risks. This encourages responsible borrowing throughout the financial services industry and speeds up lending decisions.

Authorised banks, non-banking financial companies, financial institutions, and individuals can all access a Credit Information Report (CIR). However, only authorised members and the credit owner are legally permitted to examine it due to strict rules enforced by the RBI and the Credit Information Companies Regulation Act, 2005.

Can we check the Credit Score from all 4 CICs?

Yes, it is possible to check the credit scores from all four RBI-licensed Credit Information Companies (CIBIL, Experian, Equifax, and CRIF High Mark). The RBI mandates that each CIC give one free full credit report (FFCR) in electronic format, once a year, which includes the credit score, to anyone whose credit history is on record with them.

Read Also: Essential Credit Score Monitoring Tips for Better Financial Health

How to Maintain a Healthy Credit Score with CICs?

Here are some smart tips to follow for a healthy credit score with CICs:

1.    Pay your loan EMIs and credit card bills on time, as it is an important parameter for an excellent score.
2.    Do not overuse or spend more through credit cards and maintain your credit utilisation below 30%.
3.    Maintain a balanced credit mix. Use both secured (like home loans) and unsecured (like credit cards) responsibly.
4.    Check your credit reports from all CICs regularly. Identify problems, track your credit score, and keep an eye on your loan accounts.
5.    Avoid applying for loans or credit cards too frequently, as multiple applications in a short period of time will lead to several hard inquiries from different lenders. This will result in lowering your credit score.

To Conclude

Understanding the functions of India's four credit information bureaus (CIBIL, Experian, Equifax, and CRIF Highmark) can help you track, maintain, and enhance your credit status. A high credit score indicates responsible financial behaviour, and consequently, it makes it easier to obtain loans on favourable terms.

With Poonawalla Fincorp, you can check your latest credit score from CIBIL and Experian in just a few taps, absolutely free of cost. Visit the website and check your latest score today!

Frequently Asked Questions

Is there any link between my credit score with CICs and taking multiple loans?
Yes, CICs record your multiple active loans, high credit utilisation, or delayed repayments and can change your credit score accordingly. This will affect your ability to get loans in the future.

Do CICs influence the interest rates offered on loans?
CICs indirectly influence the interest rates on loans. Lenders use credit scores and CIC reports to assess risk which may impact interest rates, credit limits, and loan approval decisions.

Are the credit scores from all four CICs the same or different?
It may not always be the same as each CIC may use slightly different data reporting methods and algorithms. Therefore, an individual’s credit score can be different across CIBIL, Experian, Equifax, and CRIF High Mark.

Can a CIC share my credit information with many lenders at once?
Yes, CICs can share your credit report with multiple authorised lenders at the same time. However, it can only be done when you apply for credit, ensuring that your credit information is utilised securely to evaluate loan or credit card applications.

Can I object to incorrect information in my CIC report?
Yes, if you find any errors or outdated information in your credit report, you can raise a dispute directly with the respective CIC. They can be asked to investigate and correct the mistakes, usually within 30 days. This ensures your credit history remains accurate.