Wednesday, September 28, 2022

A Complete Guide to The Top Financial Credit Bureaus

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New entrepreneurs have a lot of questions about credit bureaus. What are they exactly? How do they function? On what grounds do they differ from one another? Why does CIMSME India advise improving business performance on these platforms? This blog looks at these questions closely and provides a definitive guide to the top financial credit bureaus

What is a Credit Bureau?

Credit Bureau is an organization that packages and analyzes the credit report of individual borrowers and derives a credit score from them. It is primarily done for the scrutiny of government and lenders, and they decide the creditworthiness of a person and impact his loan qualification. 

Lenders visit these bureaus to acquire your business credit report and judge whether to offer you a loan or not. These private companies are highly monitored under the Fair Credit Reporting Act (FCRA). They collect, disburse and disclose consumers’ information according to proper legal procedures. If your credit report on these bureaus is proper, then you can get better loans and, in turn, lower the company CIR. 

What are the functions of Credit Bureaus?

Credit Bureaus partner with lending institutions or investors by assisting them in their decisions. Lending institutions work on a two-way business model, such as banks and credit unions. 

They allow people to deposit money in return for a certain interest rate. They use this money by lending out a portion of deposits to individuals and companies. Usually, they charge a higher interest rate from the loan seekers than what they offer to depositors. The difference in interest rates is what makes their profit.

 As a huge risk is involved in lending, checking credit reports becomes an important parameter. Credit Bureaus help simplify the credit score procedure and provide lenders easy access. This is done so that better B2B solutions are produced. 

Top Financial Credit Bureaus

There are various credit bureaus, but only a few can top the list and get universally acclaimed. These are Equifax, Experian, and TransUnion credit information Bureau (CIBIL).

CreditQ

What started as a simple credit-giving company is now a certified business credit rating agency. CreditQ has come a long way since its launch in 2019. The range of its credit score lies between 1 to 999. It operates in India and has more than 1000 employees all over India. Besides the standard business credit scores, CreditQ provides business scores & Business credit management services as well. Large organizations like companies or corporations offer additional services like business credit reports, portfolio management, and industry diagnosis reports.

Experian

Shortly after its launch, Experian gained the license to run a credit agency in 2010. It is known for conducting credit report analyses on individuals and businesses. Experian maintains a range of 300-900 for credit scores. It takes around 20 days for report formation and is quite pocket-friendly. It has established itself as a leading global information service company in the credit market and is actively providing credit services to thousands of companies and lenders.

TransUnion

Credit Information Bureau (India) Limited or CIBIL is a renowned credit service company that laid its foundation in 2000. Its credit score varies between 300-850, and scoring above 720 is considered to be excellent. For companies or large entities, it has a separate score called the PERFORM score that seeks to describe their payment history. It markets itself as an insight company that makes trust possible and has set its foot in more than 6 countries.

Author bio:

Hello, I am a professional SEO Expert & Write for us technology blog and submit a guest posts on different platforms- we provides a good opportunity for content writers to submit guest posts on our website. We frequently highlight and tend to showcase guests.

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