CIBIL Score (Credit Information Bureau) are three-digit numbers that represent the summary of your credit history, rating, and report, with a range from 300 to 900. In my opinion, it plays an extremely critical role when it comes to students and loan seekers. Now the question arises: “How to check CIBIL score?.” The article below will give you all the answers you need regarding your CIBIL score, so don’t worry if you don’t have one.
Credit Information Bureau (India) Ltd., an authorised credit rating agency, provides the CIBIL score. The CIBIL credit score and credit reports are offered to both individuals and companies, including banks and non-banking financial companies (NBFCs). Your credit score is determined by your credit history, which can vary from your loan repayment history to the track record of your credit card repayments.
How to Check CIBIL Score?
The following are the steps you need to take to check CIBIL score:
- Step 1: Visit CIBIL’s official website.
- Step 2: Select ‘Get your CIBIL score’
- Step 3: Now you need fill your email address, name, and password. YA valid ID proof is required (passport, PAN card, Aadhaar card or voter ID card).Next, enter your PIN, DOB – date of birth, and phone number
- Step 4: Click on the ‘Accept and continue’ button
- Step 5: An OTP will be sent to your mobile number. Select ‘Continue’ after entering the OTP
- Step 6: Check your credit score by selecting ‘Go to dashboard’
- Step 7: You’ll be redirected to the website, myscore.cibil.com
- Step 8: Log in to your account and you can view your CIBIL score.
Why does the CIBIL Credit Score matter?
It is crucial to have a good CIBIL score when applying for a loan. Whenever someone approaches a bank or financial institution for a loan, the lender checks his/her CIBIL score and reports first. In the case of a low CIBIL score, the bank may not even consider the application. To determine whether an applicant is creditworthy, the lender will examine the application and consider other details, including the CIBIL score.
CIBIL scores act as a first impression for lenders; the higher the score, the more likely it is that the loan will be approved. CIBIL does not in any way decide whether a loan or credit card should be sanctioned or not by the bank. A score of 710 is considered good in most cases.
How to Improve Your CIBIL Score?
High CIBIL scores are important since they help banks decide whether or not to extend credit to you. You are more likely to receive credit approval if your CIBIL score is good. These four simple and effective methods will help you improve your CIBIL score.
- Track your CIBIL Score: You should know your CIBIL Score regularly as it provides an insight into your credit status. Subscription-based credit scores allow you to monitor your CIBIL score. Additionally, you can track your score using CIBIL reports from the top credit bureaus in India. You can also check your CIBIL score to see if there are any errors or false records regarding your credit account.
- Credit Card Usage: Maintaining discipline when using credit cards is essential. Don’t exhaust your credit limit. It is recommended not to spend more than 50% of your credit card limit until your CIBIL score reaches 750.
- Increase your credit limit: Your credit limit determines how much you can borrow. You can request an increase in your credit limit from your credit card company.
- Pay debts on time: You should always pay your debts on time to demonstrate that you can manage them efficiently. Make sure you pay your bills on time to maintain a good credit rating. Your CIBIL score may be lowered if you pay partial amounts because it could portray you as an undisciplined credit payer.
CIBIL Score FAQs
Q1 – What is a good CIBIL Score?
It is important to note that a CIBIL credit score of 750 and above is considered to be a good score and increases the chances that your loan application will be approved.
Q2 – How is CIBIL score calculated?
According to the Credit Information Bureau India Limited, the CIBIL score is calculated in conjunction with a number of registered credit bureaus across the country. There are many factors that contribute to the credit score, such as the payment history, the payment pattern, the amount of credit you own, and even your existing credit channels.
There are numerous advantages associated with having a good CIBIL score, and this is a necessary step. As a result, it is vital to inform an aspiring loan applicant about the checking procedure & the benefits of good CIBIL score before applying for loan.