What is CIBIL Score?
A CIBIL scorealso known as a credit score, is a three-digit number that shows how well you’ve managed credit in the past, such as a home loan, personal loan, or credit card. It’s basically a calculation of your borrowing capacity based on your credit history.
Simply put, your credit score tells lenders whether you’re a reliable or risky borrower, as well as how likely you are to repay a new loan responsibly.
When you apply for a loan or a credit card, the lender bank or NBFC looks at your credit score and history, both of which are kept on your credit report. On a scale of 900, your CIBIL score is calculated.
Why a Good CIBIL Score is Important for Loans?
You have an excellent CIBIL score if it is between 700 and 900. This will be taken into account when banks and NBFCs assess a loan application for most retail loans, whether it’s a home loan or a vehicle loan.
A high credit scorealso known as a credit rating, offers a number of benefits during the loan application process, including The the loan application should be completed as quickly as possible.
- It is simpler to complete loan documentation.
- Low-interest loans are available.
- Increasing the amount of the loan
- Longer or more flexible repayment terms are available.
To find the best loan for you, you can choose from a number of lenders. A high score will also result in a quicker and easier documentation process. You can expect to borrow up to 80% of the total cost of the house for a home loan if your credit score is between 700 and 900.
How to Check Your CIBIL Score Online:
Here’s how to determine your CIBIL score:
Step 1: Go to the official CIBIL website, https://www.cibil.com/.
Step 2: From the drop-down menu, select ‘Get your CIBIL Score.’
Step 3: Click “Click here” to get your free Annual CIBIL Score.
Step 4: Enter your name, email address, and password into the form. a photocopy of your identification (passport number, PAN card, Aadhaar, or Voter ID). Then enter your personal information, including your PIN code, date of birth, and phone number.
Step 5: Click ‘Accept and continue.’
Step 6: Your phone number will receive an OTP. After entering the OTP, click ‘Continue.’
Step 7: Look at your credit score on your dashboard.
Step 8: You’ll be redirected to myscore.cibil.com.
Step 9: Once you’ve logged in, click ‘Member Login,’ and you’ll be able to see your CIBIL score.
How to Improve Your CIBIL Score?
- If you don’t have a good CIBIL score, being disciplined with your credit and repayment habits can help you improve it in a few months.
- Check your credit score online and keep it healthy by paying your loan Equated Monthly Instalments (EMIs) and credit card bills on time.
- Your credit score will improve if your credit report is free of EMI defaults and late payments.
- Regularly review your online credit score and CIBIL report for any discrepancies and to determine your loan eligibility.
- Your online credit score should have a good mix of unsecured and secured credit. In this case, the lower your credit score is, the more active unsecured loans you have.
- Your credit card credit utilization must be 30% to 35% of your current credit limit or less. Infrequent use of your card, on the other hand, can lower your CIBIL score.
- Before applying for a new loan, check your credit history online. Your credit score may suffer if you service multiple loans at the same time while applying for new credit.
How to Check CIBIL Score using PAN Card?
Your PAN number can be used by credit rating agencies to precisely identify your credit records. As a result, to check your credit score, you’ll need your PAN number. While checking your CIBIL, keep your PAN Card handy and double-check that the Name and Date of Birth you enter match those on your PAN Card. Simply follow these steps to check your CIBIL for free on HomeFirst using your PAN card:
- Go to ‘Free CIBIL Score‘ on the HomeFirst website.
- Fill in your full name and birth date as they appear on your PAN card.
- All required fields are gender, email address, residential address, and phone number.
- Fill out the form below to find out your score.
Why is CIBIL Score better than other Credit Scores?
TransUnion, a credit rating service, generates the CIBIL score. When applying for a loan, the TransUnion CIBIL Credit Score is the gold standard of credit scores and the only one that matters. CIBIL is the most trusted credit bureau among banks, despite the fact that several credit bureaus produce credit ratings. A credit score in India can range from 300 to 900, with a score of 700 or higher being preferred for loan or credit card acceptance. The lender verifies your credit score and credit history before proceeding with any credit application.
Also Read:
Minimum Documents Required for Home Loan