PayPal is nothing but an online path to transfer and collect payments globally. You need a Paypal ID to transact (send and receive) payments.
Short description of PayPal:-
PayPal is an e-commerce company in America founded in December 1998 as Confinity and October 1999 as X.com. Its headquarters are in San Jose, California, US. With the help of two companies named Confinity and X.com PayPal was formed.
What is a credit bureau?
- Credit Bureau is a cooperative repository of information,
- Credit Bureau gathers and stores consumer credit payment history from lenders about how individual consumers pay their bills, that is, credit obligations,
- Provides consumer credit payment history to lenders,
- Assures the privacy and limited use of consumer data.
Which Credit Bureau does PayPal use?
PayPal uses Equifax and Experian Credit Bureaus.
About Credit Information Company:-
Credit Information Company is a company that keeps records of your Loans, and the banks send this loan-related information to this company.
Credit Information Companies are built up because of few reasons like:
a. To take loans, people started cheating
b. Due to fraudsters, the bank seemed to be at a loss
To stop this all, Credit Information Companies built up, and so if anyone takes a loan from a bank, the bank transfers every detail of the loan to a Credit Information Company.
How many types of Credit Bureaus are there?
There are four types of Credit Bureaus:-
- TransUnion CIBIL
- Equifax
- Experian
- CRIF Highmark
How do Credit Information Companies work?
When a customer goes to a bank for a loan, the bank asks Credit Information Company( CIBIL, Equifax, etc.) about the customer details like the customer’s previous loan records and whether the customer repaid the loan on time or not. By this, the bank decides whether the bank should give a loan to the customer or cancel the loan.
Note:- The Bank loan not only depends on the Credit Information Company but also depends on a customer’s income, mortgage value, documentation, and ongoing liability.
What information does the Credit Bureau maintain and doesn’t maintain?
It maintains:
a) Personal information like Name, DOB, Contact number, Address.
b) Identification numbers like PAN, Aadhar, Driving License, Voter ID, Passport
c) Loan or Credit account details.
d) Enquiries
It doesn’t maintain:
a) Mobile or any bill defaults.
b) Cheque bounces for Saving Accounts.
c) Loans that are not governed by RBI and taken from local institutes like Patpedi, Chit Funds, Private money lenders.
Important information on Credit Bureau:
- Credit Information Companies (CIC) are private companies regulated by RBI, and the Indian Government does not own this company.
- There is an Act called Credit Information Companies Regulation Act 2005-06 (CICRA) is the name of the rules of running the company.
- As per law, without the consent of Banks or Credit Institutions, CIC cannot add, modify or delete any information.
- CIC has to maintain all the information in their database for a minimum period of 7 years from the last reported date.
- Approval or denial of loans depends on the Bank’s decision, and CIC is not involved in this decision.
How to check credit score in Equifax and Experian used by PayPal?
First, you have to go to Equifax’s website. Now, in this process, you have to put in some of your details. If you are concerned about your security, then you can visit a free Equifax or Experian website, and there you will see an option ” Get my free Equifax credit report. ” After clicking on the button, you will see a page where you have to be an eligible customer to get a free credit score report.
*Eligibility criteria:-
- You have been declined credit in the last 90 days,
- You have an item corrected on your Equifax credit report,
- You have to keep your credit report up-to-date once a year.
If you are eligible, click on the button(Get Now):
After that, you will get some questions related to your eligibility criteria. You can answer them honestly or can ignore them.
Then, you have to put your details like Name, Gender, DOB, Driver’s License Details, Medicare Card Details, Contact Details, Address, Employment Details, and Credit Provider Details(Optional).
Note:- Make sure that the name you use is the name you have in your IDs(E.g. Driving License).
After filling up the details, click on the CONTINUE button.
Now, it may take 1-2 business days to process, and then you’ll get your credit report.
*Same process with your Experian credit.
Conclusion
So, if you are an active PayPal user and you want to know your credit score, then visit the website from which credit bureau you want to check and get your free credit report.
Frequently Asked Questions (FAQ)
1) Does a Credit Bureau allow unverified customers?
Ans:- Yes, the Credit bureau removes and doesn’t allow unverified customers.
2) What is the purpose of the Credit Bureau?
Ans:- The Credit Bureaus’ purpose is to collect the credit information of an individual and sell that information to creditors.
