FAQs - Financial Services

This section outlines some of the most important FAQs pertaining to the Financial Services module. If you have any other queries, please reach out to us at [email protected].

1. Can anyone be found on the credit bureau?

No. Only certain individuals who have ever applied for a credit card or a loan will have an inquiry record. If they have availed of a loan or a credit card, they will have a repayment track record.

2. What’s the benefit of using a credit bureau?

Credit bureaus are a single source of accurate customer repayment information. They are easy to access and require very few data points to pull the same. The rich data from credit bureaus can be used to facilitate credit decisions.

3. What are the types of bureau pulls?

Bureaus provide APIs for 2 types of pulls - hard pulls and soft pulls.

  • Hard pulls are provided only to regulated entities and impact a customer’s score. Also, hard pulls don’t disclose the name of the lender due to confidentiality reasons.
  • Soft pulls are provided to any entities that have a strong info-sec setup in place. Soft pulls intimate the customer and the bureau shares the credit report with the customer. In addition, the platform can get to know the lender names.

4. What are the types of bureau soft pulls with Decentro?

  • Decentro has implemented a regular detailed credit report where all the fields have to be passed. The benefit here is the hit rate is 100% due to all the details being present.
  • Decentro has also implemented the simplified pull using Mobile & Name where the same report can be pulled but with lower hit rates (~70% for consumers).
  • Decentro recommends using the detailed credit report where the customer’s PAN number is available and a simplified report otherwise.

5. What’s the benefit of using soft pull?

Unlike hard pulls, soft pulls have 2 major benefits -

  • The customer’s score is not impacted and
  • The platform can access the lender’s name. This allows the platform to better understand the customer’s preferences and profile.

6. Can this be used for businesses as well?

Yes. All lenders report tradelines against individuals in the case of proprietorships, OPC, and Individuals. For companies and partnerships, the individuals who have been assessed by the lender will have a tradeline against them on the bureau.

That said, lenders use a separate Corporate Credit Bureau to access business tradelines, especially for large businesses.

7. How does the bureau score translate from one to another?

Here is an example translation below between Equifax scores and CIBIL for reference -

Equifax (Min Score)

Equifax (Max Score)

CIBIL (Min Score)

CIBIL (Max Score)

300

559

463

603

561

632

604

650

633

666

651

673

667

690

674

690

691

707

691

706

710

720

707

720

721

726

721

726

727

735

727

737

737

748

738

757

751

900

758

900


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