What is CRIF? Difference Between CIBIL & CRIF Score

A credit score is a 3-digit number that determines your creditworthiness. It is the first thing that a lender will check before giving you a loan offer because that speaks volumes about your repayment behaviour. There are 4 credit bureaus in India that generate this score. CIBIL and CRIF are 2 such credit bureaus. While you might be familiar with CIBIL, CRIF full form is The Centre for Research in International Finance High Mark. It is important you check your credit score at least once a year to stay on top of your credit health and report any inconsistencies. Want to check your free cibil score? Just visit their official website now!

What is a CRIF?

CRIF full form: The Centre for Research in International Finance High Mark. CRIF is an RBI licensed credit bureau which was founded in 2007 and commenced its operations in 2011. It generates credit scores for individuals and even companies. It also offers information and analytical solutions to banks, NBFCs, insurance companies, etc. A CRIF score can range anything between 300 to 900 where 300 is the lowest and 900 is the highest. When you apply for a personal loan, the lender will check cibil score before giving you an offer. Anything above 750 is considered a high CRIF score.

What is a CIBIL?

Transunion CIBIL is India’s first credit information bureau licensed by RBI that determines credit worthiness of people. CIBIL was founded in the year 2000 and their services were launched in 2004. Your CIBIL score is the credit score determined by TransUnion CIBIL which can range between 300 to 900 where 300 is the lowest and 900 is the highest. Having a CIBIL score above 750 can help you unlock high value loans at a lower interest rate.

CRIF vs CIBIL: Key Differences

To understand more about CRIF score vs CIBIL score, it is important to know the difference between both the credit bureau:
Point of Difference CRIF CIBIL
Full Form The Centre for Research in International Finance High Mark. Credit Information Bureau (India) Limited
Commencement of operations CRIF commenced its operations in the year 2011 CIBIL commenced its operations in the year 2004
Licensing CRIF is licensed and regulated by the Reserve Bank of India (RBI) CIBIL holds the RBI license but is owned by a private company called Transunion
Method of calculation While your repayment history plays a big role in determining your credit score, CRIF gives more weightage to your recent activity and number of credit inquiries when determining your score. CIBIL gives more weightage to the credit mix and credit age of a user when determining the score. A person with a healthy combination of secured and unsecured loans along with a long credit history is more likely to have a high CIBIL score.

CRIF Score vs CIBIL Score: Which is better?

While CRIF and CIBIL are different RBI licensed credit bureaus that generate credit scores of individuals using different parameters, they both have a credit score range from 300 to 900. Hence, there is no ultimate answer to this. Your credit score is made up of various factors like your credit inquiries, repayment history, credit mix, credit age, etc. So, if you have a clean repayment history, healthy credit mix and an overall healthy credit profile, it won’t matter which bureau you choose to check your credit score. However, it’s important for you to know that CRIF and CIBIL use different parameters to calculate your score. While CRIF gives more weightage to the recent activity and number of credit inquiries, CIBIL gives more weightage to the credit mix and credit age of a person. Must Read: How Can You Get a Personal Loan for a CIBIL Score of 550 to 600

Factors Affecting your CRIF Credit Score

Your CRIF score plays an important role in determining your credit worthiness across lenders. Given below are all the factors that can affect your CRIF score: · Number of Credit Inquiries Whenever you apply for a personal loan or credit card, it is directly reported to the credit bureau as a credit inquiry. · Repayment History Your repayment history determines if you can be trusted with a loan or not. This is a very important factor when calculating your CRIF score. · Credit Mix A credit mix is the combination of secured loans, unsecured loans, and credit cards that you take. · Credit Utilization Credit utilization is the percentage of the total credit limit that you have utilized. If you have a credit card with a limit of Rs 1,00,000 and you have used Rs 60,000 out of it, then your credit utilization is 60%.

5 Ways to Improve your CRIF Score

Doing a CRIF score check and increasing it to at least 750 can help you unlock high value loans at a low interest rate. Here are 5 simple ways in which you can improve your CRIF score:

· Make on Time Payments

Paying all your EMIs on time can help you improve your repayment history which will automatically increase your CRIF score.

· Avoid too Many Credit Inquiries

Make sure you don’t apply for too many loans or credit cards in a short span because a high number of inquiries show credit hungry behaviour, making you a high-risk borrower.

· Maintain a Healthy Credit Mix

Taking and maintaining a healthy combination of credit cards, secured loans and unsecured loans will reflect that you have experience with different kinds of credit which will help you increase your CRIF score.

· Keep Your Credit Utilization Low

When using your credit cards, make sure you keep your credit utilization below 30%. Also Read: How to Improve/Increase Cibil(Credit) Score Immediately?

How to Calculate CIBIL Score?

While there are various factors like your payment history, exposure to credit, credit mix, credit inquiries, credit age, etc. that determine your CIBIL score, you can visit the official website of CIBIL and check your free CIBIL score by downloading the credit report.

How to Calculate CRIF Score?

If you want to find out your CRIF report, you can simply go to the official website of CRIF HighMark and download your report. You will get detailed information about your CRIF score, repayment history, credit mix, etc.

How Lenders use CRIF and CIBIL Scores

Various lenders use a different credit bureau to determine a borrower’s credit worthiness. When you complete your loan application by submitting your personal information and required documents, the lender will check your CRIF or CIBIL score to evaluate your eligibility. Based on this score, you will get your loan offer and interest rate. Having a high CRIF and CIBIL score can help you avail high loan amounts at a low interest rate. You also get other benefits like faster approvals, quicker disbursals, and more flexible repayment options.

CRIF’s Role in Shaping the Future of Credit Scoring

The credit score determined by the 4 credit bureaus play a significant role in shaping the lending ecosystem of India. Through technological advancement, CRIF is elevating the precision and efficiency of credit assessment. This can help improve the credit scoring system and make credit more accessible to millions of Indians.

Conclusion

Both CRIF and CIBIL play an important role in determining your credit worthiness. Doing a CIBIL score check with a PAN card can help you understand your credit health and ensure there isn’t any incorrect reporting. Whether you prefer CRIF or CIBIL, working on this 3-digit number can help you increase your personal loan eligibility which can assist you during the times you need instant access to money.

Frequently Asked Question

Why is my CRIF Score 16?

16 is not your CRIF score but an exclusion code. This is shown to those borrowers who have not taken any loan in the time span of 36 months.

What is the purpose of CRIF?

CRIF meaning The Centre for Research in International Finance High Mark is an RBI licensed credit bureau that determines the credit worthiness of individuals and even businesses by giving them a score which can range between 300 – 900. (300 is lowest, 900 is highest)

What is the highest CRIF score in India?

The highest CRIF score possible in India is 900.

What Is CIBIL, Experian, and CRIF?

CIBIL, Experian and CRIF are three RBI licensed credit bureaus that determine credit worthiness of individuals and even businesses by giving them a three-digit score.

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