know your cibil score

Know Your CIBIL Score with These Simple Steps

Finance

Just as you must deserve to get something, you should have a good credit score to be eligible for a loan or credit card. Unaware of this fact, many just apply without even glancing at the credit score they have. The score is generated by credit bureaus such as CIBIL. What it results in is an utmost disappointment for the prospective borrowers with the rejections of their submitted applications, when their score is on the lower side.

Yes, there is unawareness regarding the importance of a credit score that can either enable or disable the case for an individual. Even if some are aware of it, they don’t know how to check their score.

So, a lot of queries regarding how to check score do the rounds on search engines. Taking that into account, the article has come with steps to know your CIBIL score. So, without any ado, let’s check out the steps below.

How to Check Your CIBIL Score?

You can check your score by following simple steps shown below.

  • Visit the official website of CIBIL
  • Sign in by entering your personal and credit details
  • Enter personal details such as your name, date of birth, PAN number, residence address
  • Feed credit information such as loan or credit card, amount of loan or credit card limit extended, loan or credit card account number, etc
  • Submit the details
  • Your details will be verified online
  • Once the verification is successful, you can create a login
  • Choose a User ID and Password conforming the requirements
  • Let the credentials be accepted
  • Afterward, log in to check the score  

Now that you know the steps to check your CIBIL score, you would want to know more about it, right? Let’s glance below for some critical information pertaining to your credit health.

Is Checking CIBIL Score Free?

Yes, it is free once a year. But more than a single instance would lead to a charge of 500 and above. However, if you check at CIBIL partners, you can do it for free, irrespective of the number of instances in a year.

Does a Poor Score Mean End of The Road for You in Credit Space?

Certainly not, as by following a few steps can take you to the list of eligible candidates seeking a loan or credit card. Firstly, you should know the score that lenders seek before approving an application. Well, it should be 700 and above out of 300-900, which CIBIL generates for individuals with a repayment track of at least 6 months to a year. However, a score past 750 is desirable as credit terms become attractive with the same. You can be offered more loan at lower rates of interest. On the other hand, if we talk about credit cards, the credit limit can be more on achieving such a score.

If your score is low, it clearly means you have a repayment track, perhaps not in the best of shape. It may be the past or the ongoing repayment that has yielded in a score.

How to Improve CIBIL Score?

The score can be improved greatly by following the below disciplines.

Get Your Repayment on Track – The delay or default of loan EMIs or credit card dues might have contributed to a poor score. So, go back to the drawing board to see the reasons for not able to pay on time. Is it due to the lack of fund on your bank account on date of repayment? If that is the case, speak to your lender about the same. Request it to change the date to a day or two past the credit of your salary to your bank account so as to ensure a timely repayment. However, if overspending is a reason for delay or default, you better curb on it to pay on time and let your score move up with time.

Refrain from Massive Credit Utilization – A massive credit utilization is typical to a credit card user as the plastic money helps shop for everything, be it online or offline. The faster utilization rates create a fear of potential default in the near future. Ideally, the credit utilization ratio should be around 30%-40% of the limit offered. But, due to impulsive buying tendencies, many breach the level and pile on the debt. Fearing a possible default, CIBIL pulls down the score of those individuals. So, you should make a list, keeping only the necessary spends. This would help you with the amount needed for a timely repayment.

 

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