April 02, 2024

How to check your credit score

Your credit score is a three-digit number that summarizes your credit history and reflects your credit behaviour in the past. This is an index of how efficiently you have managed all your credit products, including home loans, personal or car loans, business borrowing, credit cards, etc. More commonly referred to as CIBIL score, this number is a parameter that determines how much you can borrow from banks and NBFCs.

Lenders provide their customers’ credit information every month and the credit score is calculated on that basis. In other words, your credit score tells banks/NBFCs if it’s safe to lend you money, whether you can/will repay a new loan within the stipulated timeframe. So, every time you apply for a loan or a new credit card, the lender runs a background check on your creditworthiness and ability to repay with the credit bureau before accepting your request.

CIBIL score varies within a band of 300 to 900, and your aim should be to keep it on the higher side to improve your chances of securing fresh credit. Banks and non-banking lenders usually consider a credit score of 750 as a reliable parameter to approve a loan or a credit card. Some even make an exception and accept a credit score of 700-plus.

How does one check credit score?

To determine your credit score, you will have to undergo a CIBIL (Credit Information Bureau India Ltd) check. CIBIL is the foremost credit rating agency in India, tracking your creditworthiness, thus making the financial markets more transparent and better structured, while helping them to manage risks better. Since January 2017, RBI has instructed all four licensed credit information companies to provide one free credit score and report annually.

To do an online CIBIL check, these are the steps to take:

# Visit the CIBIL website

# Fill out the form provided with all the essential information sought including personal details like phone number, email address, etc, and proceed to the next step

# Furnish all the supplementary details sought, including your PAN, and proceed to the next step

# Provide accurate answers to all the queries regarding your loans, credit cards, etc, and your CIBIL score will be computed and the complete credit report generated

Once your account is created, there are a few more steps:

# You will receive suggestions on different paid subscription options (in the event of requiring more than an annual report). In case you don’t need multiple reports, it’s free and select “No Thanks”

# You can now use your login and password created in Step 2 and log into your account

# You will then need to authenticate yourself to receive an email on your registered account. Just click on the link and enter the OTP sent in the mail. This will take you to a prompt to change your password and login again

# Once logged in, all your personal details will be visible. You just have to add your contact number and click “Submit”

# Once the form is submitted, your dashboard will reflect your CIBIL score. You can also get your credit report on the dashboard

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