The term ‘CIBIL score’ is quite common for individuals who have already borrowed funds or are planning to do so. This score signifies borrowers’ credit behaviours such as how responsibly they repay the debt or how often they apply for an advance, etc. Moreover, a CIBIL score is one of the vital qualifying measures for every loan facility. Thus, applicants must take necessary measures that help maintain a high credit score.
As it reflects payment habits and history of borrowers’ credit accounts of all times, individuals need to check CIBIL score for accuracy. If any errors or entry omissions are spotted, they need to send a request to the CIBIL resolution forum for rectification. Especially before applying for any credit facility, borrowers must review their report so they can improve their eligibility, if possible.
A step-by-step guide to check CIBIL score for free
- Step 1
Firstly, individuals need to open the official website of CIBIL. Once the home page appears, they need to proceed with the ‘Check Credit Score’ option.
- Step 2
Now, users need to navigate to the option ‘Get Yours Now’, which will be placed somewhere at the bottom left-hand corner of the home page, under the tab ‘Personal’. This option allows one to check CIBIL score for free.
However, users will be required to pay certain charges to check CIBIL score if they click on the tab ‘Get Your CIBIL Score’ somewhere in the upper right-hand corner of the page.
- Step 3
Once they click on the ‘Get Your Now’ option, they will be redirected to another page. On this new page, individuals need to open an account by providing personal credentials such as name, email ID, mobile number, etc.
- Step 4
After creating an account with email ID and password, users now have to verify their identity. They can use a government-authorized identity proof such as Aadhsar, PAN, voter ID, passport, driving license, etc. for verification.
- Step 5
However, existing users do not need to open any further accounts to check CIBIL score. They can enter their password and email ID, and sign in to their existing account.
- Step 6
Once users have signed in to their respective accounts, they can receive the credit rating in their provided mail address.
While this was the most useful way to check CIBIL score, one must also know the importance of knowing this score.
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Importance of knowing CIBIL score
- Monitoring credit accounts
Individuals can keep track of their all credit accounts such as cards and loans by monitoring their CIBIL report. For example, if the calculation shows any default payment, borrowers should either check with the credit account provider or report it to the authority for rectifications.
- Maintaining credit profile
Checking credit rating can also be helpful to maintain the profile. This report conveys the total debt and repaid amount by evaluating all existing credit accounts. So, if the credit report reflects poor CIBIL score, individuals can follow some measures that can help improve it in the long run.
Ways to improve credit score
After concluding the importance of this rating in the debt market, here are some things you can do to improve personal credit score –
- Make timely repayment
The most effective way to improve the CIBIL score is by repaying the dues in time. When using any debt product, borrowers need to be extra cautious about their repayment timing. They can either use a reminder service or send standing instructions to their lender to ensure that they never miss any loan instalment or card bills. Moreover, if individuals use credit cards, they should try to clear the total bill amount rather than the minimum amount due to enhance their credit rating.
- Keep the credit utilization ratio low
Another way to increase the credit score is to maintain the credit utilization ratio below 30% of the total credit limit available. For instance, if borrowers’ credit limit is Rs.10,000, its utilization must be kept under Rs.3,000 for maximum positive impact on the score.
Notably, a healthy credit profile with a score of above 750 is eligible for advance facilities at better terms. For example, financial institutions like Bajaj Finserv provide personal loans at attractive interest rates to individuals who hold a credit rating of 750 or more.
Also, this financer provides pre-approved offers to simplify loan processing. One can avail these offers on several debt tools like business loans and personal loans. Individuals can check their pre-approved offer only with their names and phone numbers online.
So, one should check CIBIL score often to track their credit health along with profile and eligibility for loans and advances. Also, to ensure loan approval, they must check if their CIBIL score is getting them down, or if they are eligible enough to obtain the credit.