All information regarding your credit history is mentioned in your credit report. Lenders assess your credit report at the time of credit approval. A credit report portraying the disciplined credit behaviour of a borrower will contain a high credit score. This not only increases the trust of the lender but also makes it more convenient for the borrower to access credit, whereas defaults and missed payments in the report can make it difficult for the borrower to access credit in future.
Four credit bureaus in India issue credit reports to all borrowers, namely – CIBIL, Experian, Equifax and CRIF High Mark. It is a good habit to check your credit report regularly, but it is a better habit to check credit reports from multiple credit bureaus regularly. Let us understand below why it is recommended to check credit reports from multiple bureaus regularly.
1. Spotting the Origin Point of the Error
An error in your credit report can originate from either the lender’s part or the credit bureau’s part. If you witness the same error across all credit reports, it shows that the error originated from the lender’s end, which has shared incorrect data with all bureaus. Here, you should raise the rectification issue with the lender first.
When you see an error in a specific credit report and other reports don’t have it, it signifies that the error occurred due to an administrative fault of that bureau. So your issue will be resolved by raising a grievance directly with the bureau.
Also Read: Found Error in your Credit Report? Here’s How to Raise a Grievance
2. Credit Reports May Differ Across Bureaus
Some lenders may not share credit information diligently with all credit bureaus. Due to this, some loan accounts or credit cards may not feature in one report, but they would show in other reports. This can also be a reason for the difference in credit scores from different bureaus.
If you find that your latest information is not provided to a credit bureau by the lender for a long time, you can write to the lender and request for sharing your updated details with the credit bureau. However, as per the latest RBI guidelines, all lenders have to share the latest information of a borrower to all credit bureaus in a specified format that would help in keeping the credit reports of all bureaus updated.
Suggested Read: 5 New RBI Rules that Make Tracking Credit Health Easy
3. Lenders Use Different Bureaus
Various lenders have tie-ups with different credit bureaus for fetching credit reports of applicants at the time of credit approval. Staying aware of your credit standing in the eyes of all credit bureaus will help you stay prepared for every loan opportunity.
For example, one lender might use CIBIL, while another checks Experian or Equifax. This means your application may be evaluated using a report that shows a different credit score or loan history. Knowing your credit standing across multiple bureaus helps avoid surprises and improves your chances of approval.
4. Helps You Understand Score Discrepancies
Your credit scores may vary across bureaus because they collect and update data at different times, and lenders may report to some but not all. One bureau might show an overdue EMI while another doesn’t, causing a score gap. By comparing reports side by side, you can identify the cause of any inaccuracy, such as outdated DPDs, incorrect balances, or missing new accounts, and take steps to resolve it.
5. Better Credit Planning
When you have a clear view of how each bureau is reporting your credit behaviour, you can plan more strategically. For instance, if your CIBIL score is low but your Experian score is healthy, you can prioritise lenders that check Experian. However, it is very difficult to figure out which lender requests credit reports from a certain bureau.
You can check credit scores from multiple bureaus for free on Paisabazaar and get monthly updates to stay on top of your credit health. In case you find errors, get them resolved at the earliest and be eligible for the best loan and credit card offers.
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