Check CIBIL Score | How To Check Credit Report and Score (FAQ)

We all must have heard about CIBIL Score and How to Check CIBIL Score. Borrowing and lending are concepts that most of us are familiar with. You’ve probably met at least one person who has a habit of forgetting to repay money borrowed. Because of their forgetfulness, this makes you think twice about lending to them. Lending institutions, meanwhile, would prefer to give loans and credit cards exclusively to people who they consider creditworthy. The CIBIL score is one of the most important indicators used by Indian credit institutions to assess an individual’s creditworthiness.

Check CIBIL Score

What Exactly is CIBIL Score?

When consumers apply for credit, their CIBIL score is one of the most essential indicators that practically every financial institution looks at. TransUnion CIBIL works with nearly every bank to assess the creditworthiness of millions of people and businesses. A high CIBIL score demonstrates both your financial management and your ethics.

Your recent score (from the last six months) is checked every time you apply for a loan or a credit card. In general, a score of 700 or higher is regarded as outstanding, while some banks set the bar high while others are willing to reduce it.

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Importance of CIBIL Credit Score

Check CIBIL Score is similar to a report card for your financial honesty. It’s a signal that advises a lender whether or not to grant a loan: “yes, you may give the loan” or “no, it doesn’t appear that he or she will return on time.” The following are some of the reasons why you should constantly maintain a good CIBIL score.

  • Unsecured Loans are Approved More Quickly

When it comes to credit scores, a clean chit from TransUnion CIBIL is critical when applying for loans with no collateral. Take, for example, personal loans. It is easier to get a loan sanctioned for a borrower with a high CIBIL score (say, 750+). If your credit score is above 800, you may be eligible for a bigger loan amount than a bank would normally offer.

  • Approval of a Secured Loan

There is a misunderstanding that it is easier to avail of secured finances such as home loans and vehicle loans, as you will be giving the lender some security. Your credit history will, however, be scrutinized by the lender. This is how the upper limit and interest rate are determined. The overall process can become challenging if your CIBIL score is low.

  • Insurance Premiums are Lower

Insurance, whether it’s life insurance, medical insurance, or other types, is another financial tool that relies heavily on trust and trustworthiness. The insurance firms keep meticulous records of your payback history, claims history, and general debt and dues management. This helps them figure out if you’ll be able to get a lower rate than other policyholders with bad credit.

  • More Negotiating Power When it Comes to Interest Rates

Are you aware that interest rates vary depending on the type of loan and the bank? Some folks are fortunate enough to get a better deal than others. You can haggle with banks for a better rate or deal if your Check CIBIL Score is higher. Creditworthy consumers are assets for any financial institution; therefore, you can quickly evaluate loan offers and negotiate authoritatively.

  • Choosing the Best Credit Card is a Chance and a Choice

Credit cards, when utilized wisely, can provide a slew of advantages. Even though they offer a fixed zero-interest period, interest rates can skyrocket if you skip or delay payment. With a higher-than-average CIBIL score, credit card firms will compete to offer you the best deal possible. Otherwise, you risk receiving a credit card with an exorbitantly high-interest rate or being turned down.

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Who is Responsible for Calculating the CIBIL Score?

TransUnion CIBIL is an Indian credit bureau or credit information organization that was founded in 2000. It was the first of its type in the country. Individuals’ CIBIL scores are calculated using consumer data recorded in the company’s database. They are well-known for their score calculating accuracy and transparency.

Check CIBIL Score Free Online

Follow the below-given steps to check CIBIL Score:

Step 1: To Check CIBIL Score, Go to TransUnion CIBIL’s official website at https://www.cibil.com/freecibilscore.

TransUnion CIBIL's official website

Step 2: On the home page, under the ‘Personal’ tab, click the ‘Get Yours Now‘ button for a free CIBIL score. After paying specific fees, you can acquire a complete report by clicking on “Get Your CIBIL Score.”

Get Your CIBIL Score Now

Step 3: Assume you’ve chosen to receive a free CIBIL score. In the first step, you’ll be sent to a page where you’ll be asked to input your personal information. The second step in the registration process is to confirm your identity using a government-issued identity proof document.

Check CIBIL Score

Step 4: You can log in to your account if you already have one.

Step 5: Your credit score will be emailed to you at the address you supplied during registration.

How To Check Credit Report and Score

It is incredibly simple to obtain your most recent CIBIL score immediately from TransUnion CIBIL’s official website.

  • Every person is entitled to a free CIBIL score check once a year. If you’ve previously used this chance, you’ll need to choose one of the following paid plans:
    • Rs.550 for a one-month subscription
    • Subscription for 6 months – Rs.800
    • Rs. 1,200 for a one-year subscription
Check Credit Report
  • Fill out the online form with your personal information.
  • Complete the captcha in the box and accept the terms and conditions before proceeding to the payment page.
  • Within 24 hours of making the payment and confirming your account, you will receive your credit report in the mail.

Aspects that Affect the CIBIL Score

Past Repayments

Poor credit histories are viewed by banks and NBFCs as a predictor of future conduct. Every time you take out a loan or take out credit, the lender is required by law to report it to CIBIL. The bank keeps track of whether or not you pay your bill on schedule. It is regarded as a favorable indicator if you make an effort to repay in advance.

Debt to Income Ratio (DTI)

Lenders generally do not encourage customers to take on additional debts that exceed 40% of their income. As a result, DTI is used to assess a borrower’s ability to repay a loan depending on his or her income. It is a wonderful metric for instilling financial discipline as well as ensuring that you can comfortably afford your future EMIs.

Credit Scores Rise

As a working person, you may be subject to a credit limit (whether it is for a loan or credit card). Using them to the brim, on the other hand, implies credit-hungry behavior, which banks view as a warning indicator. If you maintain a certain credit level month after month but suddenly find yourself spending much more, your credit score may suffer.

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Numerous Existing Loans

Lenders will always be concerned if you have too many loans in your name, such as a home loan, a few personal loans, a vehicle loan, and credit card(s) on top of that. It is usually preferable to complete one task before moving on to the next. Concentrate on completing the lesser loans as quickly as feasible.

Difference Between Credit & CIBIL Score?

Credit Score

A credit score is a three-digit figure that reveals how successfully someone has managed credit in the past. In a nutshell, it demonstrates a person’s creditworthiness. Credit is widely used in today’s world for a variety of objectives. A credit score can be thought of as a summary of your credit history.

A higher credit score (out of 900) is earned by consistent positive credit behavior, whereas blunders result in a lower score. It will be difficult for someone with a low credit score to obtain any type of loan, particularly unsecured loans such as personal loans and credit cards. If your application is approved, the interest rate will be greater than usual.

CIBIL Score

Credit scores are sometimes confused with CIBIL Scores. They incorrectly use the terms interchangeably. The Indian government has given four credit rating firms the authority to analyze people’s credit scores. TransUnion CIBIL, Experian PLC, High Mark Federal Credit Union, and Equifax Inc. are the companies involved. TransUnion CIBIL is the most well-known of these credit rating agencies.

When consumers apply for credit, their CIBIL Score is one of the most essential indicators that practically every financial institution looks at. TransUnion CIBIL is affiliated with nearly every bank and assesses the creditworthiness of millions of people and businesses. A high CIBIL score demonstrates both your financial management and your ethics. Your recent score (from the last six months) is checked every time you apply for a loan or a credit card. In general, a score of 700 or higher is regarded as outstanding, while some banks set the bar high while others are willing to reduce it.

Good Score and Bad Score

CIBIL scoreWhat it means
850 – 900It demonstrates that you have never defaulted and is an outstanding score.
750 – 850It is a fact that borrowers with a credit score of 750 or higher receive 79 percent of all loans approved. With a score of 800 or higher, you may easily negotiate a reduced rate on personal loans and credit cards.
700 – 750For secured loans, this is a decent score. However, for unsecured credit, the bank may conduct further research (such as a social score) or charge slightly higher rates.
500 – 700This indicates that you have previously delayed or defaulted. Personal loans from banks might be tough to come by. A private financier may charge a high rate of interest.
300 – 500Such a low score shows far too many inconsistencies in previous loan repayments to be overlooked. You will be unable to obtain a loan from any bank in the country until you work on credit repair or improvements.

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How Can I Raise My CIBIL Score?

It’s not the end of the world if you have a low credit score. You can raise your score by completing the following tasks. You should expect a significant change in your credit score and ‘improvements’ on your credit report to take at least six months.

  • Never Delay Payments

Because of technological advancements, the number of procrastinators is on the rise. CIBIL, on the other hand, does not accept this explanation, and you must pay your dues and EMIs on time. If you don’t, your grade will suffer. To avoid inadvertent delays, it is preferable to automate your payments.

  • Get a Copy of Your Most Recent Credit Report.

This will assist you in comprehending your current situation and where you have slipped. If your low credit score is due to a few late payments, for example, you must make sure that this does not happen again. It will also assist you in fixing any faults that may have occurred, as well as setting a goal (it has to be at least six months).

  • Gain Your Recent Credit Report

This will assist you in comprehending your current situation and where you have slipped. If your low credit score is due to a few late payments, for example, you must make sure that this does not happen again. It will also assist you in fixing any faults that may have occurred, as well as setting a goal (it has to be at least six months).

  • Have a Diverse Credit Portfolio.

This will demonstrate to the lender that you are capable of handling various types of credit. This can be accomplished by combining secured (home loan, auto loan) and unsecured (personal loan, credit card) loans. A higher proclivity for unsecured loans is not regarded favorably.

  • No Maxing Out the Credit

Just because your credit card permits you to take out a loan of up to Rs.2 lakh doesn’t imply you should. You must ensure that the debt-to-income ratio does not become unbalanced.

  • Smart Debt Management

If you manage your debts wisely, your credit score will rise. For example, we all know how a credit card works on revolving credit and how it can quickly become unmanageable if not managed properly. In this situation, paying off credit card debt with a personal loan is a wise decision. This implies you’ll pay less interest and have more time to fix a problem.

  • Tenure Extensions are Not Permitted.

Another element that can affect your credit score is the length of the loan or credit. If you accept a personal loan with a three-year term and extend it halfway for a lower EMI, your CIBIL score may suffer.

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FAQ’s

What should you do if your credit report has an error?

 You can challenge a credit report inaccuracy on the CIBIL website if you detect one. A single dispute can be used to contest errors in numerous areas.

Is my credit score affected if I acquire my credit report from a different agency?

If you obtain a credit report from an unauthorized credit reporting agency, your credit score may alter. This is because the proprietary methodology used to construct the credit report may differ from one agency to the next.

In India, are there any other credit agencies?

Four-credit reporting organizations, including TransUnion CIBIL, have been authorized by the Indian government. The following are the other three agencies:
Equifax Inc.
Experian PLC
Highmark Federal Credit Union Experian PLC

How long does it take CIBIL to handle my complaint?

The organization may take up to 30 days to resolve your complaint after you file it.

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