All you need to know about the CIBIL score and how to check it for free
The credit score of an individual is an instrumental factor in determining the approval of a loan. Therefore, lenders tend to check applicants’ credit reports to assess and understand the credit history and determine the creditworthiness of an applicant.
The Credit Information Bureau (India) Ltd., also known as CIBIL, compiles and provides the credit scores and reports of individuals based on their debt history and repayment behavior.
CIBIL score is a three-digit number ranging from 300 to 900. An individual with a higher credit score enjoys greater loan approval chances than those with a lower score. Before applying for a loan, borrowers can check the CIBIL score online for free.
Steps to check the CIBIL score
Individuals can check the CIBIL score for free once a year. Follow these steps to know your CIBIL score conveniently:
- First, visit the official website of CIBIL.
- Now, look for the ‘Get your CIBIL score’ option and click on it.
- Thereafter, tap on the ‘Click here’ option to continue with the process.
- Submit your name, email ID, and password along with a valid photo ID proof like Voter’s card, PAN, or Aadhaar card. In addition, you need to provide the Date of Birth, contact number, and PIN code.
- After you enter all the necessary details, check them before hitting the ‘Accept and Continue’ option.
- Now, you will receive an OTP on the provided mobile number. Enter the OTP and click on ‘Continue’.
- Once you are successfully registered, select the ‘Go to Dashboard’ option to check the CIBIL score.
- After this, you need to log in with the credentials to view your score.
In addition to this, one can check the CIBIL score for free within 2 minutes on websites of leading NBFCs such as Bajaj Finserv.
Why is it essential to check the CIBIL score?
Every individual must keep track of their CIBIL score. Here’s how knowing the CIBIL score is going to help a borrower:
- Helps maintain healthy credit: Knowing the CIBIL score can help a borrower keep track of their creditworthiness. So, if individuals have a low credit score, they can try to improve it by taking the necessary steps.
- Ensure accuracy: A CIBIL report consists of crucial financial and credit-related information of an individual. Therefore, one can check this report to ensure the accuracy of the data provided. In case of any error or discrepancy, an individual can report the same to the dispute resolution forum of CIBIL.
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- Efficiently manage loan accounts: Borrowers with multiple loan accounts can easily track their loan accounts by checking the CIBIL report and score.
Tips to boost your CIBIL score
A high CIBIL score is crucial to securing loans with convenient terms. Borrowers can get better loan terms and a higher amount of loan on a CIBIL score of more than 750. If you have a low CIBIL score, try to improve and rebuild it through the following steps:
- Make timely repayments
One of the proven ways to increase your CIBIL score is to make all the repayments on time. Whether it is your loan EMI, credit card bills, or other utility expenses, timely payment is crucial to improving the credit score.
- Avoid incurring multiple debts
Ideally, a borrower should obtain a loan only after entirely repaying an existing loan. Moreover, individuals should avoid applying for too many loans in a fixed period as it leads to frequent hard inquiries. Too many hard inquiries can harm your CIBIL score.
- Choose different forms of credit
To build a strong CIBIL score, you can mix various credits, including secured and unsecured, long-tenor, and short-tenor loans. This healthy mix of credit forms will help boost your score in the long run.
CIBIL score is one of the most important parameters to determine your financial health. Hence, it would help to maintain a standard CIBIL score to enjoy faster loan approval, better loan terms, and other financial perks from a lender. You can follow the steps mentioned above to check the CIBIL score online and plan your finances and credits accordingly.