All You Need to Know About CRIF Highmark Score

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Dec 29, 2020CIBIL

Credit scores are an important tool in the borrowing and lending business. The credit score of a person lets the lender know their creditworthiness and lets them make a decision of whether or not to accept them as borrowers. Similarly every person or business should check their credit score. It is highly advisable for individuals as well as businesses to take the necessary steps and improve their credit score, as this can give them access to funding easily and at low rates of interest. 

What is CRIF Highmark?

CRIF Highmark is one of the 6 credit bureaus in India. The CRIF Highmark generates credit reports and credit scores for individuals, companies, and all entities. To generate this, it obtains and analyses all kinds of credit-related information, on the basis of which it can gauge the creditworthiness of the individual or entity, and assign them a CRIF credit score. The information used to gauge a person’s credit score is updated on a monthly basis by members of CRIF, which include banks and financial organizations.

CRIF Highmark Credit Score - An Explanation

The CRIF credit score – is a 3 digit number that falls between 300 to 900. With 300 being the lowest or the worst score and 900 being the highest or the best score.

A high CIRF credit score indicated a person who is low risk and has high financial credibility. In short, a person with such a score should be considered a low loan risk. Likewise, a low credit score indicates a person with low financial credibility, who is a risk candidate for a loan.

This is how the CIRF credit score is used by lenders to gauge the creditworthiness of a person.

Must Read: Factors That Can Affect Your Credit Score

Points to Note about the CRIF Highmark Credit Score

The CRIF Highmark Credit score is:

  • A 3 digit score given to you based on your credit history.
  • A number that ranges between 300-900
  • The CRIF credit score can be read as:
    Poor: if it is between 300–500
    Fair: if it is between 500–700
    Good: when between 700–850
    And at 850+ your score is Excellent. 
  • It is a reflection of your creditworthiness 
  • One CRIF credit report a year is free – thereafter it is chargeable at the rate of INR 399/- every year.
  • CRIF scores can be checked online.
  • There are PCS – or Personal Credit Scores for individuals and BCS or business credit scores for businesses 

Criterion used by CRIF Highmark to Calculate the Credit Score

The CRIF Highmark uses certain important criteria to calculate a person’s credit score. These criteria include the outstanding debts of a person, the repayment history, the length of period for which they have been taking loans, the credit mix utilized by the person, the ratio of debt to income, the number of new loan applications made, etc. These are the same things a person must be aware of as a part of their credit history and credit usage.

Some Tips If you want to Improve your CRIF Credit Score

Now that you know the criterion used to judge the credit score – how to improve your credit score is an interesting derivative of the same.

  • You must ensure your loan servicing is done in an efficient manner and all dues are paid on time.
  • Credit Card dues should be paid off in a timely manner and not kept rotating with minimum payments being done.
  • The credit utilization should be ideally below 40% of the available limit.
  • Monitor your credit report on a regular basis and before and after making any important decisions.
  • Have a good credit mix for your use.
  • Do not apply for multiple loans at the same time.
  • Do not max out your credit cards.
  • Do not miss any payments due.

These would help you raise your CRIF credit score over a period of time.

When to Check your CRIF Highmark Credit Score

You should check your CRIF credit score on a timely basis – but especially before you apply for a loan. This is because by being informed of your credit rating – you will know where you stand with respect to the following:

  • Your chances of getting approved for a loan
  • Your chances of getting favourable terms for a loan 

With a low score – you stand to be rejected for the loan or get a smaller amount at higher rates of interest. . Even the approval process can involve more documentation and the process could take longer.

Obtaining a CRIF Highmark Credit Report

Only banks and other lending institutions can get other people’s CRIF report and CRIF scores for evaluating their creditworthiness while deciding on a loan application. Individuals and businesses can get their own reports of PCS or BCS on the official CRIF Highmark website. On entering details and being able to answer the security question as per the outlined procedure, you will be able to get your credit report and credit score.

Must Read: 10 Smart Ways to Increase Your Credit Score Fast

Is there a Difference Between Credit Score and Credit Report?

The CRIF Credit Report – contains details of a person’s credit behavior and repayment history. It identifies the borrower’s name, date of birth, and creates a report based on the same. The credit score is a 3 digit number that signifies this information in a grade based manner.

The Importance of CRIF Highmark Credit Score

For the Lending Institutions or Members of CRIF: the Credit score and credit report help them to make lending decisions, as well as protect them from fraud. They also provide Predictive analytics & scorecards for Identification and anti-fraud services.

For the individual – it gives the ability to check credit score and improve Credit score, as well as the opportunity to correct any errors in reporting.

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