What is CIBIL score – the answer to this question is easy, a CIBIL score is nothing but a three-digit number that reflects the credit summary. These three-digit numeric numbers are obtained by using the credit history, found in Credit Information Report or CIBIL report.
A CIR is a person’s individual credit payment history that reflects types of loans and credit institutions from which loan has been taken over the period of time.
Since it is established what is CIBIL score, let’s try to understand what is credit score. Though, often credit score and CIBIL score are considered to be the same. However, there is a slight difference among these.
Let’s commence with what is credit score, a credit score is basically, a numerical expression created depending on the distinct level of analysis of an individual’s credit files, that determines an individual’s creditworthiness.
However, as similar as the definition of what is CIBIL score or what is credit score sounds, there is one slight, yet the noticeable difference between both. So, the credit score is the score of any four credit bureaus in India, although, however, only CIBIL provides CIBIL score.
Now that we have understood what is CIBIL score is and what credit score is established, let’s understand why a good CIBIL score is important to obtain loans.
Why is a Good CIBIL Score Important to Obtain Loans?
As mentioned, a CIBIL score is a three-digit numerical number, these three digit numbers would be between 300 to 900, the highest being the most preferred score. Moreover, lenders, banks, and financial institutions prefer to provide loans to individuals with CIBIL scores above 700. Let’s see, why a good CIBIL score must be maintained –
- Seamless and quick loan application processing.
- Easy loan documentation process.
- Minimum or low rate of interest on a loan.
- High quantum of loan.
- Long or flexible loan repayment duration.
- The choice to choose one lender among others.
With that, let’s understand how CIBIL score is calculated or the summary of a CIBIL score.
How CIBIL Score is Calculated | Factors That Affect CIBIL Score
How CIBIL score is calculated – to calculate CIBIL score distinct factors need to be taken into consideration, some of the major factors that affect CIBIL score are –
- Record of past payments.
- The previous settlement, defaults, and write-offs.
- Loans as a proportion of income.
- Dependence on unsecured loans or secured loans.
- Loan equities.
Let’s understand how to check CIBIL score, then we will get into how to check credit score.
How to Check CIBIL Score | CIBIL Score Check Online | How to Check Credit Score?
- Visit CIBIL score website.
- Click on, “get CIBIL score.”
- Select, “"Click here" to obtain your free Annual CIBIL Score.
- Enter your name, email address, along with your ID documents such as PAN card, aadhar card, and others.
- Thereafter, provide your PIN, date of birth, and also phone number.
- Once done, click on, “accept and continue.”
- Provide the OTP sent on your mobile.
- Once done, you have successfully registered and now to check your CIBIL score click on “dashboard.”
- On the redirected page, you can view your CIBIL score.
Understood? How to check CIBIL score?
It is not rocket science, though, if you are struggling to know how to increase CIBIL score or how to improve CIBIL score – we have a solution for you in the next section.
How to Improve CIBIL Score | How to Increase CIBIL Score
If you want to know – how to increase CIBIL score or how to improve CIBIL score, well we have a solution for you, follow below-mentioned steps and avail loans seamlessly.
- Check your CIBIL score, for a better understanding of your credit status.
- Check your credit score to eliminate all the potential errors which could occur.
- Restrict your credit usage, especially until your credit score reaches a 750 CIBIL scores. Moreover, it is advised to only utilize 30% of your credit limit, including making payments on time.
- While not utilizing or minimum utilization of credit limit, you must also ask your bank to increase your credit limit with time.
- To improve your CIBIL score, manage your debt deficiency by making payments on time.
Since, we have understood major aspects in respect to CIBIL score, be it understanding what is CIBIL score, how to increase CIBIL score or how to improve CIBIL score, how CIBIL score is calculated, and how to Check Credit Score. With that, let’s move on to credit score check free.
Credit Score Check Free | How to Check Credit Score Free
If you are looking for a way to check credit score free – you can check on several platforms, such as –
- Bajaj finserv
- Paisabazaar
While platforms like these provide seamless access to your credit score, let’s see, what are the exact steps you are required to follow for a credit score check free.
- Visit the concerned website.
- Enter your details, personal name, phone number, email address, and city.
- Provide details of your PAN card, net salary, and Date of Birth.
- Submit the details.
Once the details are submitted, you can check your credit score for free. So, like how to check CIBIL score, credit score check free. Likewise, you can check your credit score free on platforms such as Paytm.
Conclusion
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