The CRIF score is a three-digit figure which is assigned to an individual or an entity by CRIF High Mark, one of the four main credit bureaus operating in India. Your CRIF High Mark credit score is an indicator of your loan repayment ability and it is one of the first things a lender checks when they receive your loan application. This article will tell you everything you need to know about the CRIF High Mark credit score. Read on to know more.
A CRIF credit information report is a detailed record of the credit information behaviour displayed by you in the past. Your CRIF High Mark credit information report will include the following bits of information:
Your personal details
The number of credit accounts that are active
Your repayment history
The amount that you still owe the lenders, and
The number of enquiries that have been made about you by financial institutions
A lender takes all of this information into account and then decides whether or not you should be granted more credit as it gives them the indication of your creditworthiness.
You can check your CRIF High Mark credit information report and score by following the below-mentioned steps:
First, you will need to help yourself to the official portal of CRIF High Mark.
Next, you will need to click on the ‘Your Credit Score’ button that you will find on the homepage.
You will then be taken to a page where you will find the ‘Get Yours Now’ button. Click on that to proceed.
After that, you will need to fill in basic information pertaining to you, such as your name, your PAN number, your mobile number and then your email address.
Once you have done that, agree to the terms and conditions. After that, click on ‘Get my Credit Score’ to proceed.
On the page that will follow after completing the above step, you will need to enter the OTP that CRIF will send to your phone. Click on the button below to proceed.
Finally, you will need to verify your identity by answering a question about your recent credit behaviour. If you answer correctly, you will be taken to a dashboard page where you will be able to see your CRIF credit score. You will also be able to download your latest credit report through the same right away.
Your CRIF credit score stays within the range of 300-900. 900 is the highest and best possible score you can get, whereas 300 is the lowest and the worst. If your credit score is between 300-500, it is considered to be poor. If it is within the range of 300-500, it is considered to be fair. But, if your CRIF credit score is within the range of 700-850, it means that you have a good credit score. If it is above 850, you can say that you have an excellent CRIF credit score.
CRIF High Mark calculates your credit scores with the help of the FICO credit scoring model. As per the scoring model, CRIF High Mark takes certain pieces of your credit information into consideration and assigns each one of them a weightage that is expressed in percentage terms.
The elements that experian takes into account and the weightage that is assigned to them are as follows:
Credit Mix: Your credit mix is essentially the ratio of your unsecured loans to your secured forms of credit.
Credit History: The loans and credit cards availed by you in the past years is a part of this section.
New Credit: The credit cards and loans which you have availed in the recent past is also accounted for by CRIF High Mark while calculating your credit score.
Payment History: This is the most important factor that is taken into consideration by CRIF High Mark when they are calculating your credit score. This section essentially is a record of all your credit repayments and late payments (if any).
Amount Owed: Your outstanding dues are also accounted for while calculating your credit score. It gives the lender a sense of your loan repayment capability and your capacity of taking on new credit when they check your credit report after you apply for a loan/credit card from them.
Credit Utilisation Ratio: The percentage of your available credit which has already been used is also looked into by CRIF High Mark at the time of calculating your credit score.
The benefits of a good CRIF High Mark credit score are as follows:
You can get pre-approved offers from lenders
You can get favourable interest rates on your credit cards or loans
You can get easily approved for personal loans, home loans or car loans
You may even be able to negotiate repayment terms with your lender
You can improve your CRIF High Mark credit score in the following ways:
Repay your loans/credit card bills on time: One obvious way to increase your CRIF High Mark credit score is by repaying your loan/credit card bill payments on a timely basis. If you have extra funds in your bank account, you should also consider fully or partially prepaying your loans and outstanding credit card dues too.
Maintain a low credit utilisation ratio: Financial institutions recommend that you should use less than 40% of your available credit at any given time, as it is recorded by the credit bureaus in their reports about you. If you are going past the 40% mark, you can come across as a credit hungry person and therefore, the lender may become sceptical giving you more credit. A high credit utilisation ratio could also cause rejection of your loan/credit card application.
Keep old credit cards active: Some of the best minds in the finance world say that you should keep your old credit cards active until their expiry since they essentially give the lender a sense of your credit behaviour over many years. If you have been repaying your dues on time over the course of the past many years, it can impact your CRIF High Mark credit score positively.
Maintain a healthy credit portfolio: Always aim to maintain a healthy mix of unsecured and secured forms of credit. The dominance of unsecured credit in your portfolio can impact your CRIF High Mark score negatively.
Get new credit cards: If you get a new credit card, your available credit will automatically increase, which means that your credit utilisation ratio will go down. If you manage to bring your credit utilisation ratio down in this manner, you will be able to improve your overall credit score.
Some of the factors that affect your CRIF credit score are:
Your repayment history: The frequency with which you repay your credit obligations greatly affects your CRIF High Mark credit score. If you keep making timely payments, you will have a healthy credit score. If you pay your dues late or miss them, such instances may cause a fall in your credit score.
Your credit utilisation ratio: If you are using less than 40% of your available credit limit, your credit score should remain healthy. If you go past that mark, your CRIF credit score can fall due to it.
Your credit mix: The ratio of your secured to unsecured kinds of credit in your portfolio also determines your credit score. If unsecured credit makes up for a major part of your credit portfolio, consider adding secured forms of credit to it whenever you feel the need to borrow.
The number of enquiries made by lending institutions: When a lender receives your loan/credit card application, they do what is known as a hard inquiry for your credit score. These hard inquiries are recorded by credit bureaus and then they add the same in your credit profile. When you apply for credit often, the lenders will keep making frequent inquiries regarding your credit reports, all of which will be recorded and then added to your report. If your credit report shows too many of such inquiries in a short span of time, it will give the lender the impression that you are a credit hungry person, which may make them sceptical about giving you a loan. It is due to this reason why you must space out your loan/credit card requests.
The services and products offered by CRIF High Mark are:
Credit bureau information: CRIF provides detailed and comprehensive reports to individuals and lenders alike. These reports help individuals assess their personal credit health and help lenders in deciding whether to accept an individual as a borrower or not by giving them a sense of their creditworthiness.
Fraud and identification services: CRIF also helps you identify potential instances of identity theft by providing them with their detailed credit reports. You can scan these reports and look for potentially suspicious activities. Upon identifying them, you must report them immediately. If left unchecked, these unauthorised transactions can affect your credit health negatively.
Business Information: If you are a lender and are planning to give a business a loan, CRIF helps you take a deeper look into their credit history and disputes (if any) so that you can make informed lending decisions.
Ever considered quantifying your financial health in specific parameters, with the Credit Health Report on Finserv MARKETS?
PCR stands for personal credit report and BCR stands for business credit report. As the names suggest, a personal credit report is a detailed record of an individual’s credit history and shows the credit behaviour exhibited by them in the past. Business credit report, on the other hand, helps a lender assess the credit health of a corporate entity.
If you follow a handful of simple steps, you can get your CRIF report within minutes. All you will need to do is log onto the official portal of CRIF High Mark, share some basic information regarding yourself and then verify your identity by answering a question about your most recent credit activity. Once you do that, you will be taken to a dashboard page that will display your credit report. You can also download your credit report from there as well.
It is recommended that you check your CRIF credit score and report as frequently as possible to understand where you stand in terms of loan eligibility and even keep an eye out for potentially suspicious credit-related activity.
A CRIF credit score is calculated by taking the same factors into account as CIBIL does, but both of them assign different weightages to the same aspects related to one’s credit behaviour. It is due to this reason why your CRIF score will be different from your CIBIL score. If the difference is vast, you may want to contact either of the credit agencies and investigate further.
You can raise any CRIF credit information-related query through the official portal of CRIF itself. All you will need to do is log onto their website, click on ‘Contact Us’ and then fill up a form which will ask you for your contact information and the exact query you have. You can then expect a CRIF executive to get in touch with you shortly either through mail or phone.
You can check your CRIF High Mark credit score and get your credit information report for free once every year. Thereafter, you will need to pay a fee of ₹399 everytime you ask for the same.