Applying for a personal loan? Find out how to check your CIBIL™ score

Applying for a personal loan? Know How to check the CIBIL™ score

Checking your CIBIL™ score is important as it indicates creditworthiness. The lender accepts/denies your loan based on it. How to check the CIBIL™ score online?

Currently, In India, many banks and Non-Banking Financial Companies (NBFCs) are offering unsecured personal loans where there is no need for you to provide any kind of collateral to borrow the loan. Before approving an unsecured personal loan, the lender will check your CIBIL™ score to find how well you handle different credit lines. Your CIBIL™score is indicative of your creditworthiness. The CIBIL™ score is a 3-digit numerical value ranging between 300 to 900. If you have a high CIBIL™ score of above 750, it signifies you are a financially skilled person to repay the borrowed credit. On the flip side, a poor credit score may deny a person getting credit or offer credit at unfavorable terms like high-interest rates & inflexible tenure. Therefore, having a good CIBIL™ score will help you avail of loans seamlessly, even at low-interest rates & high loan amounts. 

4 Credit Bureau In India:

The CIBIL™ & credit report of individuals is provided by the Credit Information Bureau. These credit bureaus will collect data, combine it, and aggregate it from individual consumers & lending institutions to offer details related to one’s credit history and creditworthiness. The banks & NBFC rely on credit reports before approving any credit card or loan application. Currently, we have Four credit bureaus in India. All 4 credit bureaus are certified by the Reserve Bank of India. 

The following are the 4 Credit Bureaus in India are: 

  • TransUnion CIBIL
  • Equifax
  • CRIF Highmark
  • Experian

Read on to find out how to check your CIBIL™ score online, the best CIBIL™ score to avail of a personal loan & tips to maintain your CIBIL™ score. 

How Can I Check My CIBIL™ Score Online? 

The following are the steps you need to follow to check your CIBIL™  score online:

First, you must visit the official CIBIL™ website or Tap the below link for the same: 

  • Next, you must choose the 'Get your CIBIL™ score’ option. 
  • Press the "Click here" option to get your annual CIBIL™ score.
  • You need to mention details like your name, email ID, and password. Attach ID proofs such as passport number, PAN card, Aadhaar, or Voter ID. Then, type your PIN code, date of birth & phone number. 
  • Press the  'Accept and continue' button. A One-Time-Password sent to your mobile number. Now, you should enter the OTP number & Give 'Continue'. 
  • Choose the 'Go to dashboard' option and view your credit score.
  • Now, you will be redirected to the website: 
  • Press the  'Member Login' option. After logging in, check your CIBIL™ score.

Importance Of Good CIBIL™  Score Loans:

A CIBIL™ score between 700 and 900 is deemed a good score to avail of any kind of credit. Your CIBIL™ score is considered by banks and NBFCs when you apply for loan applications or credit cards.  Be it a vehicle loan/credit cards/business loan, the lenders will prioritize your credit score before providing you authority to use credit. 

A high CIBIL™ score has the following benefits while opting for any loan:

The loan application will be faster & chances of getting credit approval with a minimal & easy documentation process. 

You can avail of credit at lower interest rates. 

Chance of being eligible for a higher quantum of loan. 

Viable to get longer &  flexible repayment tenure.

Get a chance to choose one lender between multiple lenders. It helps you to select the loan that best suits you. Also, Such scores will facilitate the documentation process quickly and easily.  

For a home loan, If you have a CIBIL™ score between 700 & 900, you can expect up to 80% of the total cost of the property.

Essentials To Maintain A Good CIBIL™ score:

A CIBIL™score of 750 and above is deemed ideal. It is necessary to follow some tips to maintain your CIBIL™ score as it is useful when you opt for any loan or a credit card.

 The following are the handy tips for a  Good  CIBIL™ score:

Ensure Low Credit Utilization Ratio:

First on the checklist is the Low credit Utilization Ratio. Ensure to maintain your credit utilization ratio at 30% or below 30% for a good CIBIL™ score. Getting a credit card with a higher credit limit will help if you are struggling to remain within the existing limit of the card.

Disciplined Repayment: 

Usually, credit card & loan repayments strongly impact your CIBIL™score. Therefore, you should give priority to repaying your loan & credit card dues in time. It is advisable to avoid delays in repaying your loan dues or credit card to maintain good credit. Also, you should not pay partial amounts as it may depict you as undisciplined in handling credit and drop your CIBIL score.

Credit Mix: 

It is advisable to have a good mix of secured and unsecured debt to get a high CIBIL™ score. For example, A  Credit Card is categorized as unsecured debt, whereas a Car Loan is a secured debt.

How Can I Improve My CIBIL™ score?

It is essential to maintain a high CIBIL™ score as it enables the banks & NBFCs to decide how much credit is viable for you to avail. A good CIBIL score boosts the chances for instant credit approval. 

Below listed are the five simple yet effective ways to help you improve your CIBIL™ score.

Check & Monitor: 

It is advisable to regularly check your  CIBIL™ score as you will get a clear picture of your credit status. You can monitor your CIBIL™score by applying for a monthly subscription-based credit score. Fintech firms like CreditMantri offer a Credit Health Report service that enables you to get monthly updates on your credit health & unlock your credit potentially. Also,  track your score using the CIBIL™report from the leading credit bureaus in India. Checking your credit score often will help you to detect errors & resolve them. 

Limited Usage of Credit: 

Disciplined usage is mandatory when it comes to credit cards. Ensure not to exhaust your total credit limit. 

Increase your credit limit:

 A credit limit is nothing but the total amount you can borrow using the card. Ask your credit card issuer to increase the credit limit of your credit card. 

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