MUMBAI: A credit report is a financial statement that provides information related to your current credit situation and credit activities. Both the terms, Consumer Credit Report and Company Credit Report refers to the credit report that comprises a comprehensive report that signifies the financial stature of an individual or a company.
Both the company and the consumer credit report help in analysing the creditworthiness and financial stability of an individual or an enterprise. It contains all the relevant information that is useful for prospective lenders and potential borrowers. These reports also inform the lending institutions regarding the amount of risk involved in offering funds to various eligible individuals, companies, enterprises or organizations.
Most of the lending institutions check and analyse your consumer credit reports or the company credit reports thoroughly before offering you funds. Therefore, before applying for any loan, you can check your consumer credit report or credit score for free online from Paisabazaar web and app platforms. Once you check your report, you also start receiving monthly updates. Your free consumer credit reports from this platform are available in English and six other regional languages as well for better insights and analysis.
Consumer Credit Report and Company Credit Report may seem a bit similar, but these two terms have numerous differences in their nature, role and significance. Read on to get a better understanding regarding the major differences between these two terms.
Know the difference between Consumer Credit Report and Company Credit Report
| Consumer Credit Report | Company Credit Report |
| Generated by credit bureaus for individuals | Generated for companies and enterprises |
| Provides credit score that ranges from 300-900, wherein any score as close to 900 is regarded as good by lending banks and NBFCs | Calculates credit rank that ranges from Rank 1-10, wherein Rank 1 is considered best and 10 being the lowest |
| Generated by Credit Information Companies (CICs) | Generated by Credit bureaus and Credit Rating Agencies (CRAs) |
| Provides information related to past payments, existing accounts, loan EMIs and credit card dues | Provides information related to the company’s ownership, finances, payments, etc. |
| Helps in determining the chances of payment of loan EMIs and credit card dues | Helps in determining the company’s ability to repay the loans in time |
| Credit Score Range (300 – 900) | Credit Ratings Range (AAA-D), ‘AAA’ being the strongest and ‘D’ being poor |
| One free report is provided free of cost every year by bureaus | It is a paid service. Monthly, Half Yearly and Annual plans offered |
Purpose
Consumer Credit Report is generated for individuals to check and analyse their payment history, financial stability and creditworthiness, whereas the Company Credit Report is generated for companies, enterprises and organizations to know the possibility of risk involved in repaying their loans in time.
Credit Score and Credit Rank Range
Consumer credit score ranges from 300-900, wherein any score close to 900 is considered with the high possibility of availing hassle-free funds at lower interest rates. Whereas, the company credit report’s rank ranges from Rank 1-10, in which Rank 1 is considered as best with good repayment track record and least possibility of risk involved in repaying the loans in time and vice-versa.
The credit scores and credit ranks, which are generated by Credit Information Companies (CICs) are calculated and issued by using unique mathematical and statistical algorithms by each credit bureau.
Credit Information
Consumer credit reports provide information related to an individual's credit score, creditworthiness and financial stability, credit history, such as past and existing loans, credit cards usage, and other financial obligations. Whereas, a commercial credit report is solely for business-related information, including its ratings, ownership, credit history, vendor payments, loans, business credit cards and other finances.
Relevance
Consumer credit reports are used to determine the chances of repaying loan EMIs or credit card dues in time. However, commercial credit reports are checked by lenders to know whether the company or business has the capacity to repay the loan(s) in time or not.
Credit Information Companies (CICs) and Credit Rating Agencies (CRAs)
Consumer Credit Reports are generated and issued by India’s four leading Credit Information Companies (CICs) or credit bureaus named as TransUnion CIBIL, Experian, Equifax and CRIF High Mark. Whereas, the Company Credit Reports are generated by various Credit Rating Agencies, such as Credit Rating Information Services of India Ltd. (CRISIL), Investment Information and Credit Rating Agency of India (ICRA) Ltd., Credit Analysis and Research (CARE) Ltd., Acuite Ratings & Research Ltd., Brickwork Ratings India Private Ltd., India Ratings and Research Pvt. Ltd. and INFOMERICS Valuation and Rating Private Ltd.
Credit Score and Credit Rating
The credit score is displayed in numeric that ranges from 300 to 900, whereas credit ratings are expressed in letters, such as ‘AAA’ to ‘D’, wherein 'AAA' stands for the highest and 'D' considered as the lowest by the potential lenders with high possibility of default and least possibility of availing funds.
Useful Tips:
To be financially stable and generate future opportunities; checking, managing and improving your credit scoreis considered as a pivotal step to secure your financial future. At Paisabazaar web and app platform, you can check your free credit score and receive monthly updates. You can also check and compare numerous lending products available from various banks and NBFCs that meet your urgent cash requirements.
Applying and availing for funds becomes convenient, if you are aware of your credit score and credit rank in case you own and manage a company or enterprise. Both individuals and businesses should review their reports regularly to make sure there is no incorrect information that might damage your credit score or credit rank.
