Credit score, credit information bureau & P2P loans

  • Lenders use, among other parameters, reports of independent credit agencies, helping them find suitable candidates to lend money (and to measure the risk represented them). A Credit Information Bureau is an independent firm which collects and analyses data (which are indicative of their financial status and history, called credit worthiness and credit history respectively). This gives the lending institutions an objective estimate of the repayment capacity of borrowers. In India, currently, there are four such credit information bureaus: CIBIL, Equifax, Experian and CRIF Highmark.

    You can check your approximate CIBIL score at

    CIBIL is the oldest of the pack having been established in 2000 while Equifax, Experian and CRIF Highmark all received licences in 2010. Each agency is required to give an individual one credit report for free per year. Anything beyond that, you’ll b expected to pay for the report. The scoring system of each bureau differs only slightly. Individuals are scored by CIBIL between 300 and 900, with 900 being the best credit status and 300 the lowest credit status. Equifax scores individuals on a scale of 1 to 999, with 1 being the lowest and 999 the best credit status. Individuals are provided Experian Score between 300 and 900: 900 being the best and 300 the worst possible score. Highmark scores range from 300 to 850 and a score of 720+ is considered excellent.

    Peer-to-peer (P2P) platforms, the latest kid on the block in the Indian consumer finance space, also use credit score by one of these agencies as an input to determine loan eligibility of its applicants. In case you need to find more about P2P loans check,