You can now check your CIBIL score in 8 simple and easy steps. Checking your CIBIL score has never been easy and it is also important to check your credit score before you apply for a credit card or any kind of loan. Whether you apply for a credit card or a loan, your CIBIL score has a significant role in your application approval process. CIBIL score check is vital for maintaining a good status. Often some top companies reject your credit card approval if you have a low CIBIL score.
What is a CIBIL score?
The RBI authorises the Credit Information Bureau India Ltd. (CIBIL) to yield detailed credit records of people. A CIBIL score or credit score indicates your creditworthiness. It is a three-digit number on a scale of 300-900. So, the closer your score is to 900, the more trust any loan or credit card issuing company will have in you. Top companies consider a score below 500 as bad. Therefore, you must strive to maintain a good CIBIL score to enhance your credit card or loan approval chances.
How to Check Your CIBIL Score?
Follow the steps given below for a free CIBIL score check:
Step 1: Visit the official CIBIL website for a CIBIL score check.
Step 2: Click “Get your Free CIBIL Score” on the landing page.
Step 3: Enter your email address and create a password.
Step 4: After filling in all the details, click ‘Accept & Continue.’
Step 5: You will receive an OTP. Enter the OTP and click ‘Continue.’
Step 6: Your enrolment on the CIBIL website is complete. Now click on ‘Go to Dashboard.’
Step 7: On the homepage, tap the ‘Member Login’ tab and log into the account using your credentials.
Step 8: Once you successfully log in, you will have your CIBIL score.
Benefits of A Good CIBIL Score
You are eligible for the following advantages if you have a good CIBIL score, i.e., 750 or above:
- You can easily get a lower rate of interest on loans.
- Banks and top companies quickly approve your loan and credit card applications.
- You enjoy a stronger negotiation power with lenders.
- You have better chances of higher limits on loans.
- It gets easier for you to have higher limits on your credit cards.
- You multiply your chances of getting pre-approved loans from banks.
Consequences of A Low CIBIL Score
You might face the following challenges if your CIBIL score turns out to be low on a CIBIL score check:
- Your access to mainstream funding gets limited.
- You get higher interest rates.
- There are fewer loan options as some top companies have a set minimum score requirement.
- It can get harder to find housing and acquire certain services.
- Your insurance premiums rise.
- CIBIL score can also count against you in a job hunt.
How To Improve CIBIL Score?
If you have a low score then you can follow the methods on how to improve CIBIL score that are as follows.
- Ensure timely payments: Always make your due payments on time to maintain a good CIBIL score. It would be best if you kept in mind that repayment history has a significant weightage on your CIBIL score. Therefore, maintaining timely payments for credit card bills and loans is essential to get a good record in your CIBIL report.
- Do not stick to minimum dues: You might fall into the trap of paying only minimum dues each month while avoiding full payments. This practice affects your CIBIL score negatively. Moreover, you might often land huge debts due to high outstanding payments. The interest rates reach high values up to 30-40% annually, making it difficult to clear off pending payments.
- Thoroughly scan your credit report for errors: You must review your credit report for errors. See what error is present in your report, i.e., whether it is transaction-related or personal detail. Try to rectify the error as soon as possible, as it can affect your CIBIL score.
Concludingly, a CIBIL score check is essential to maintain a good track record. Keep a check and pay all the dues on time to benefit from the best deals from banks and top companies.