What is CIBIL Score?
a CIBIL Score, also known as credit score, is a three-digit number that reflects how well you have managed credit such as home loans, personal loans or credit cards in the past. It is basically a calculation of your borrowing capacity based on your credit history.
Simply put, your credit score tells lenders whether you are a reliable or risk-averse borrower, as well as how likely you are to responsibly repay a new loan.
When you apply for a loan or credit card, the lending bank or NBFC looks at your credit score and history, both of which are kept in your credit report. On a scale of 900, your CIBIL score is calculated.
Why a good CIBIL score is important for loan,
If you have an excellent CIBIL score between 700 and 900. This will be taken into account when banks and NBFCs assess loan applications for most retail loans, be it home loans or vehicle loans.
the high credit scoreAlso known as credit rating, the loan application offers several benefits during the process, including that the loan application should be completed as soon as possible.
- The loan documentation is easy to complete.
- Loans are available at low interest.
- increase in loan amount
- Longer or more flexible repayment terms are available.
To find the best loan for you, you can choose from several lenders. A higher score will also result in a faster and easier documentation process. If your credit score is between 700 and 900, you can expect to borrow up to 80% of the total cost of the home for a home loan.
How to check your CIBIL score online:
Here’s how to determine your CIBIL score:
Step 1: Visit the official CIBIL website https://www.cibil.com/.
Step 2: From the drop-down menu, select ‘Get your CIBIL Score’.
Step 3: Click on “Click Here” to get your free annual CIBIL Score.
Step 4: Enter your name, email address and password in the form. A photocopy of your identity (Passport Number, PAN Card, Aadhaar or Voter ID). Then enter your personal information including your PIN code, date of birth and phone number.
Step 5: Click on ‘Accept and Continue’.
Step 6: An OTP will be sent to your phone number. After entering the OTP, click on ‘Continue’.
Step 7: View your credit score on your dashboard.
Step 8: You will be redirected to myscore.cibil.com.
Step 9: Once you are logged in, click on ‘Member Login’ and you will be able to view your CIBIL score.
How to improve your CIBIL score?
- If your CIBIL score is not good, being disciplined with your credit and repayment habits can help you improve it in a few months.
- Check your credit score online and keep it healthy by paying your loan equated monthly installments (EMIs) and credit card bills on time.
- Your credit score will improve if your credit report is free from EMI defaults and late payments.
- Review your online credit score and CIBIL report regularly for any discrepancies and to determine your loan eligibility.
- Your online credit score should have a good mix of unsecured and secured credit. In this case, the lower your credit score, the more active unsecured loans you have.
- Your credit card credit utilization should be 30% to 35% or less of your current credit limit. On the other hand, frequent use of your card can lower your CIBIL score.
- Before applying for a new loan, check your credit history online. Your credit score may suffer if you pay off more than one loan at the same time when applying for new credit.
How to check CIBIL Score using PAN Card?
Your PAN number can be used by credit rating agencies to accurately identify your credit record. As a result, to check your credit score, you will need your PAN number. While checking your CIBIL, keep your PAN card handy and double check that the name and date of birth entered by you match with your PAN card. Follow these steps to check your CIBIL for free on Homefirst using your PAN card:
- go for ,free cibil scoreOn the HomeFirst website.
- Fill in your full name and date of birth as they appear on your PAN card.
- All required fields are gender, email address, residential address and phone number.
- Fill the form below to know your score.
Why is CIBIL score better than other credit scores?
TransUnion, a credit rating service, generates CIBIL scores. When applying for a loan, TransUnion CIBIL credit score is the gold standard of credit score and that is the only thing that matters. sybil Credit bureaus are the most trusted among banks, despite the fact that many credit bureaus produce credit ratings. A credit score in India can range from 300 to 900, with a score of 700 or higher being preferred for loan or credit card approval. The lender verifies your credit score and credit history before proceeding with any credit application.
Read also:
Minimum Documents Required for Home Loan