CRIF vs CIBIL: Differences for a Better Credit Understanding

Credit score plays an important role when applying for a loan. This score is determined by credit bureaus and helps lenders assess the likelihood of loan repayment. The two major bureaus in India are CRIF and CIBIL. 

Understanding the difference between CRIF and CIBIL is crucial for individuals looking to apply for a loan or improve their creditworthiness. This blog aims to shed light on the differences between these two credit score providers and help readers understand the implications of each credit score-based system.

What is CRIF?

CRIF stands for the Centre for Research in International Finance, which provides essential credit information. It was previously known as High Mark Credit Information Services Private Limited.

CRIF is a credit bureau authorised by the Reserve Bank of India that provides services to the commercial and microfinance sectors, including those offered by non-banking financial companies. It maintains and keeps track of credit data and activities like loans and credit card transactions for individuals and companies. This information, including details about your payment history and credit score factors, is valuable for lenders when they consider granting loans to both parties.

This credit bureau also specialises in risk management solutions and provides software and consulting services to lenders to manage risks associated with lending. Additionally, CRIF provides data collection, analysis, and decision-making support to offer comprehensive solutions that assist in determining credit scores effectively.

What is CIBIL?

CIBIL, which stands for Credit Information Bureau (India) Limited, is the most popular and widely used credit information company in India. Like CRIF, it provides comprehensive credit reports based on an individual's credit history.

CIBIL gathers data from various credit institutions like banks and NBFCs, including details about credit history, repayment behaviour, and outstanding loan amounts. This information is used to generate the CIBIL credit report and score, which helps lenders assess the credit health of borrowers and make informed lending decisions. CIBIL credit score ranges from 300 to 900, with a score closer to 900 considered as an excellent score.

ALSO READ:- CRIF Full Form, Meaning, and How to Improve it?

CRIF Score vs CIBIL Score: Key Differences

The major differences between CRIF and CIBIL are mentioned below:

Which Holds More Weightage – CRIF or CIBIL?

While there are several discussions on the CRIF vs CIBIL credit score, you should know that both are licensed by the RBI, so both scores hold significance in terms of reflecting accurate credit utilization.

The importance of each score depends on the financial institution to which you have applied for a loan. Lenders may prefer reports from either CIBIL or CRIF for assessing a borrower’s creditworthiness. 

Steps to Check CIBIL Score from the Poonawalla Fincorp Website 

The following steps should be followed to check your CIBIL score from the Poonawalla Fincorp website:

Step 1: Click on the ‘Free CIBIL Score’ button.

Step 2: Enter relevant fields like your name, PAN number, mobile number, date of birth, and address.

Step 3: Enter the OTP received on your mobile number.

Step 4: Lastly, click on ‘Submit’ to check your score.

How to Check Your CRIF Score?

To determine your CRIF score, you can visit the official CRIF High Mark website. An alternative is to check for your free credit report on the websites of financial institutions that use the CRIF score to determine your creditworthiness.

Step 1: Visit the official CRIF High Mark website.

Step 2: Click on the ‘Get Your Score Now’ button present on the home page.

Step 3: Enter required details such as your name, ID type, ID value, followed by your mobile number and email ID.

Step 4: Once done, click on the ‘Get My Credit Score’ button.

To Conclude

Understanding the differences between CRIF and CIBIL is crucial for individuals seeking to manage their creditworthiness effectively. Both bureaus play a significant role in assessing creditworthiness, and individuals should strive to maintain a good credit standing with both. 

Check your Free CIBIL Score today. You can also apply for a Personal Loan, Pre-owned Card loan, Home Renovation loan, Business Loan and much more at Poonawalla Fincorp. 

Frequently Asked Questions 

1. How accurate is the CRIF score?

The accuracy of the CRIF score relies on the accuracy of the information given to the credit bureau, including repayment history.

2. What is the purpose of CRIF?

CRIF’s purpose is to offer credit information and risk management solutions to lenders and businesses. They collect and analyse credit data from various credit data sources , including loan history, repayment behaviour, and outstanding debts of individuals and companies.

3. Which is better, CRIF or CIBIL?

CRIF and CIBIL are both credit information companies that offer credit reports and scores to lenders. Deciding which you should consider depends on the specific lender or financial institution you are working with.

4. Is the CRIF score equal to the CIBIL score?

No, CRIF and CIBIL are separate companies that calculate credit scores in their unique ways. Both credit bureaus have a credit score range of 300 to 900, and the factors used to determine credit scores remain similar.

5. Can a low credit score from CRIF or CIBIL impact loan approvals?

Yes, a low credit score from either CRIF or CIBIL can impact loan approvals as lenders consider credit scores as an indicator of creditworthiness. This is why it's essential to maintain a good personal credit score.

6. How long does it take to improve a credit score?

Improving a credit score takes time and consistent effort, especially if you have a poor credit history. It depends on several factors such as timely payments, credit utilization, credit mix and the length of credit history, as well as ensuring you fall within an acceptable score range. 

It may take several months to a year or more to see significant improvements. This applies to both CRIF and CIBIL scores, especially if you have a longer credit history.

7. Why do credit scores differ across credit bureaus?

Different credit bureaus use different algorithms and datasets in their score calculation to determine credit scores. These variations occur due to disparities in the information collected, scoring models, weightage assigned to different credit factors, and other proprietary factors.

8. What is the CRIF/CIBIL score required for a Personal Loan?

The CRIF/CIBIL score required for availing a Personal Loan is 750 or above.