creditworthiness. It consists of a 3-digit numeric value that ranges between 300-900. This credit score is given by the Credit Information Bureau (India) Limited, also called TransUnion CIBIL, a regulated agency that’s authorized for providing the credit score. Some of the other credit bureaus that are in India are CRIF High Mark, Equifax, and the Experian.
To get the score through these agencies, it is highly recommended as it is required when making the application for the loan. Once the score is received, all one needs to do is download the CIBIL report and then analyze the same for planning the loan application. So, you can understand the importance of it, and therefore, you must remain aware of how to check your CIBIL score in just 2 minutes. Just make sure you give the below-mentioned information a complete read. It will help you a lot.
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How does it all Work?
The credit score in India, it ranges between 300 to 900. It then is divided into varied categories like,
- Bad CIBIL score
- 550 and below.
- Unhealthy for the individual looking for a loan.
- Advise- adopt disciplined financial habits.
- Poor CIBIL score
- 550 to 649 score.
- It indicates delayed repayment of the loan.
- Risky as it indicates the inability for repaying a loan on time or has a chance for the same ahead.
- Advise- repay previous amounts before new loan application.
- Average CIBIL score
- 650 to 699 score.
- Neither bad nor good.
- One must improve credit history by making timely payments.
- One can get loan approval with a little high-interest rate and with a little fewer benefits.
- Advise- repay loans on time.
- Good CIBIL score
- 700 to 749 score.
- Lower comfort in comparison to the excellent score.
- Improves loan approval multifold.
- Advise- Improve credit score and get an attractive rate of interest and hassle-free loan.
- Excellent CIBIL score
- 750 to 900 score must be maintained.
- Indicates all repayment on time.
- Borrowers with better scores are low-risk borrowers who would pay the credit card bills and the loan EMIs promptly.
- Eligible for a best-interest loan, approved amount of loan, etc.
- Advice- maintain the score.
The above-mentioned scores are bifurcations, they are just indicative, and they can vary.
CIBIL Score- How is it Calculated?
A prominent credit bureau, CIBIL is authorized to publish the borrowers’ credit scores. The bureau gets regulated by the RBI’s Department of Banking Operations and Development. There are varied factors that influence or determine the credit score level. They are,
- Credit/repayment category
- Utilization of credit
- Credit mix and the repayment duration
- Credit Inquiries
- Credit Utilisation Ratio or CUR
- Credit type and Tenure
- Deadlines being missed
- Many applications for the credit card
- Increased credit limit
- Credit inquiry
CIBIL Score- Importance
Accounting for life uncertainties, one can need the credit or a loan at one point in time. When making an application, the borrower with the high CIBIL score they are highly likely for getting the loan approval quick, in comparison to the lower CIBIL score. Further, a high score also helps in building trust, especially when it comes to the loan repayment. It ensures that one receives an attractive interest rate and the other benefits.
Apart from the above, the below-mentioned are the reasons why the CIBIL score is important.
- Helps establish creditworthiness
- Faster credit or the loan approval
- Getting an attractive interest rate
- Access to the pre-approved loans based on the eligibility
- Higher limit on the credit cards
- Discount on the processing fees and the other charges.
Checking CIBIL Score- Aadhaar Card and PAN Card
The PAN number allows the credit bureaus for singling out the credit records appropriately. So, the PAN number is needed for checking the CIBIL score. When checking, keep the PAN card handy and make sure the birthday and name match the details mentioned on the PAN card. Then follow the below-mentioned steps on the Wishfin portal,
- Visit the portal or download the mobile app.
- Navigate the option of CIBIL score.
- Enter your PAN number and contact details.
- Provide your name and your birthdate as per your PAN card.
- Submit entered information for the score.
When checking the CIBIL Score through the Aadhaar card, use the residence address mentioned on the card.
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Checking CIBIL Score- WhatsApp
One can check their CIBIL score even through WhatsApp. It is an easy process with the use of a meta-owned instant messaging platform. In order to do so, just follow the below-mentioned steps,
- Give a missed call at- 91-8286151151.
- You will receive a WhatsApp message through the number.
- Answer just a few questions like PAN number, contact details, and name, etc.
- Once done, you will receive the CIBIL score in the chat box.
Checking CIBIL Score Free
One can pay the charges and get the exact CIBIL score or the estimated score for free. The process is faster and simpler. It can be done by visiting CIBIL’s official portal or downloading CIBIL’s mobile app, or using banks/3rd parties finance websites.
- CIBIL Official Portal
If choosing CIBIL’s official portal,
- Visit the website and select Your CIBIL Score.
- Provide name, contact details, date of birth, ID proof, etc.
- Provide the relevant information asked and then select, Accept, and Proceed.
- The one-time password will be received on the registered mobile number with the CIBIL.
- Enter the OTP on the screen and then click the option Continue.
- Then click the panel for checking the CIBIL score.
- You will be redirected, wherein you can continue with the member login option, and when you will log in to your account again, the CIBIL score will be available.
- CIBIL Mobile App
If downloading a mobile app for score,
- Install the CIBIL app for the mobile phone.
- The complete registration process on the app.
- Log in to the account.
- Check CIBIL score.
When choosing 3rd-party websites, you can get CIBIL score for free. However, make sure the website chosen is highly reliable as well as authenticated. With these websites, you will get a score as many numbers of times as you want.
Some banks have the option of the facility for checking the scores. They even provide reports. To do so, some charge the additional fees, while others offer it for free.
To avoid huge financial liabilities, it is advisable as it would impact one’s eligibility for the credit. Further, always remember that a good CIBIL score has multiple benefits, like getting the application for the approval of a loan at a low-interest rate, etc. So, retain the CIBIL score and take advantage. You can use the below-mentioned options anytime for getting the CIBIL score. In general, it is advised to check it every 6 months. If there are any errors seen, report the same to the concerned authorities.