BankBazaar’s customers can now get free credit monitoring services from Experian. The credit bureau will give a snapshot of a customer’s current credit status which will show the utilization of loans and credit cards. The report will take into account repayment behaviour, credit utilization patter, type of loan (whether it is a secured or unsecured), default in EMI payments.
Customers score will be rated from 300 to 900 and will state the reasons for influences for the score. Customers can also see whether banks have closed the loans which have been already paid off by them. BankBazaar added that the service will help them improve the quality of credit applications as users will have a better idea about their credit eligibility.
The company added the service through Experian is free. Generally, customers have to pay credit bureaus for more than one soft query in a year.
Inclusion of payment banks in credit bureaus
Currently, there are four credit bureaus operating in India – High Mark, Expreian, CIBIL and Equifax. Credit bureaus have also been looking at tying up with other entities to give a better picture of a customer’s financial status. For example, last year, credit bureaus asked the Reserve Bank of India (RBI) to consider making payments banks members to that they can share data on transactions. Note that payments banks are not allowed to undertake any lending operations but credit information companies, believe the transactions which they undertake will help them understand borrowers.
In July last year, BankBazaar raised $60 million in a round of funding led by Amazon. In July 2014, it had raised around $13 million from Sequoia Capital and Walden International. In 2011, it raised its $ 6 million Series A round of funding from Walden International.