Credit Bureau APIs
Evaluate the creditworthiness of your customers before lending & minimize the risk of default using our Credit Bureau APIs.
What is a Credit Bureau?
We’ve already applied for a loan, a credit card, or a pay later service during shopping at least once in our life. Do we know how the eligibility for getting credit is often calculated? Along with your background & details, there’s one number that has a major impact on this metrics- Credit Score.
What exactly is a credit score?
A credit score is a financial metric that shows the creditworthiness of a user/business and is used to decide the eligibility for a loan.
Financial institutions like banks use this information to measure the ability of a customer to repay the loan and the risk of default associated with it. A credit score is a three-digit number, typically ranging from 300 to 900. But, who compiles these data points?
A credit bureau is a data collection agency, that collects & compiles the credit history of a borrower and provides a comprehensive report on the same for financial institutions to assess the creditworthiness for future references.
Which are the Top Credit Bureaus in India?
The Reserve Bank of India has established and licensed four credit rating bureaus that will be administered by The Credit Information Companies (Regulation) Act, 2005 and rules and regulations. Some of the top credit bureaus in the country are TransUnion Credit Information Bureau (India) Limited or CIBIL, Equifax, Experian, CRIF High Mark.
Credit Report Vs Credit Score
Are they the same? The short answer is no!
The main difference between credit reports and credit scores is that credit score is a numerical value that is used as a quick means for lenders & financial institutions to decide whether the loan applicant is eligible for credit. On the other hand, a credit report is a comprehensive & detailed document containing the applicant’s financial history.
A credit report provides a holistic view of the user by providing intricate details such as:
- Personal details & background
- Address details for offline verification
- Estimation of income details
- Identity proofs registered for national IDs
- Contact address & email IDs
- Retail account details: History from financial institutions like banks and NBFCs
- Credit Score and Loan enquiry Summaries
Where are Credit Bureau Checks Critical
Insurance Providers
To reduce risk of claim frauds, insurance companies run soft credit score checks on users.
Loans & Credit
To decide the interest rate, repayment terms, disbursement amounts, & more for consumer/business loans.
Telco Platforms
Before extending services, especially postpaid, telcom companies use credit bureau checks for credit check & profiling.
Credit Card & BNPL
E-commerce platforms, for example, that provide BNPL services to users. Banks issuing PPIs & loans to users.
Got Questions?
Benefits of Credit Report Analysis for your Business
Behavior Analysis
Study entire credit history & score to understand purchase patterns & repayment behavior.
Risk Evaluation
Reduce the risk of default and increase the chances of simplified collections for your business.