New Delhi, Sept. 30 -- Credit bureaus are modern credit information companies. They collect, store, and analyse credit information from individuals and companies, helping lenders make better lending decisions. Banks and lending institutions take the data provided by these credit bureaus in the form of scores to carry out a deep background check on the aspiring applicant's credit profile.

This background check helps in getting a fair idea about the creditworthiness, honesty, and repayment integrity of an aspiring borrower, and hence, better lending calls are made based on it. Currently, India has four major credit bureaus: CIBIL, Experian, CRIF High Mark, and Equifax India.

Credit bureaus compile credit data from banks, NBFCs, and card i...