Credit bureaus rate credibility of customers based on scorecards. These scorecards are designed by the credit information companies to arrive at a credit score for the customer.
CIBIL works on hub and spoke model which facilitates in reducing redundancy and inconsistency.
It believes in maintaining data quality based on standard 3C approach: Complete, Correct and Current. Complete data refers to one which is free of redundancy, is exhaustive and bears details of individual items. Correct data means data which is accurate and current data means one which is regularly updated with recent details.
CIBIL provides information in reference to current outstanding loan amount, credit limits, payment history etc while negative information refers to late payment, default etc.
CIBIL has received the ‘In Principle Approval' for certificate of registration from the Reserve Bank of India in 2009 which allows it to extend its services to individual customers also. Many analytical reports are also published by CIBIL based on trends and developments in business.
CIBIL shares information only with those companies which are its members and who provide data to it.