What is CIBIL Score?
A CIBIL score, also known as a Credit Score, is a three-digit figure that indicates how successfully you have managed credit in the past, such as a home loan, personal loan, or credit card. It’s essentially a measure of your borrowing capacity, estimated based on your credit history.
Simply put, your credit score indicates to lenders whether you are a trustworthy or dangerous borrower, as well as the possibility of you repaying a new loan responsibly.
When you apply for a loan or a credit card, the lender bank or NBFC examines your Credit score and credit history, which are kept on your credit report. Your CIBIL score is based on a scale of 900. Lenders are more likely to approve you for new credit if your credit score is higher. Lenders often want a score of 750 or above.
Why a Good CIBIL Score is Important for Loans?
If your CIBIL score is between 700 and 900, you have a good score. When banks and NBFCs assess a loan application for most retail loans, whether it’s a home loan or a vehicle loan, this will be taken into account.
A high Credit score, often known as a credit score, provides numerous advantages during the loan application process, including:
- Application for a loan should be completed as quickly as possible.
- Loan documentation is easier to complete.
- Loans with lower interest rates
- Increasing the loan amount
- Repayment terms that are longer or more flexible
You can choose from a variety of lenders to find the best loan for you. Furthermore, a high score will result in a faster and easier documentation procedure. If your Credit score is between 700 and 900, you can expect to borrow up to 80% of the total cost of the house for a home loan.
How to Check Your CIBIL Score Online:
Here’s how to find out what your CIBIL score is:
Step 1: Go to https://www.cibil.com/, which is the official CIBIL website.
Step 2: Choose ‘Get your CIBIL Score’ from the drop-down menu.
Step 3: To acquire your free Annual CIBIL Score, click “Click here.”
Step 4: Fill out the form with your name, email address, and password. Attach a photocopy of your ID (passport number, PAN card, Aadhaar, or Voter ID). Then, along with your PIN code, date of birth, and phone number, add your personal information.
Step 5: Select ‘Accept and proceed.’
Step 6: An OTP will be sent to your phone number. Select ‘Continue’ after entering the OTP.
Step 7: Go to your dashboard and look at your credit score.
Step 8: You’ll be routed to the myscore.cibil.com website.
Step 9: Click ‘Member Login,’ and you’ll be able to check your CIBIL score once you’ve logged in.
How to Improve Your CIBIL Score?
If you don’t have a good CIBIL score, you may improve it in a couple of months by being disciplined with your credit and repayment habits.
- Check your credit score online and keep it healthy by making on-time payments on your loan Equated Monthly Instalments (EMIs) ahttps://homefirstindia.com/article/cibil-login-and-registration/nd credit card bills.
- Your Credit score will improve if your credit report is clear of EMI defaults and late payments.
- Check your online credit score and CIBIL report regularly to look for any inconsistencies and to determine your loan eligibility.
- A good mix of unsecured and secured credit should be present in your online credit score. In this case, the fewer active unsecured loans you have, the better your credit score.
- Your credit card credit utilization must be 30 percent to 35 percent or less than your current credit limit. Using your card infrequently, on the other hand, can lower your CIBIL score.
- Check your credit history online before applying for a new loan. If you service many loans at the same time and seek new credit, your credit score may suffer.
How to Download CIBIL Report?
The CIBIL report can be obtained by completing the steps below:
- Step 1: Go to https://www.CIBIL.com/freeCIBILscore and fill out the form.
- Step 2: Select the ‘Get Yours Now’ option from the drop-down menu.
- Step 3: Fill in the required information, which includes your name, date of birth, contact information, and ID number, to mention a few. Create your ‘Username’ and ‘Password’ now.
- Step 4: To validate your identity, an OTP is given to your contact information. You may also be asked to supply more information to verify your identity.
- Step 5: After confirming your identity, you can examine your CIBIL score and obtain your CIBIL report for free.
How to Check CIBIL Score using PAN Card?
Credit Rating Agencies can use your PAN number to precisely identify your credit records. As a result, you’ll need your PAN number to check your Credit Score. Keep your PAN Card ready while checking your CIBIL and double-check that the Name and Date of Birth you submit match those on your PAN Card. To check your CIBIL for free on HomeFirst using your PAN card, simply follow these steps:
- On the HomeFirst website, go to ‘Free CIBIL Score.’
- Fill in your name and date of birth as they appear on your PAN card.
- Gender, email address, residential address, and phone number are all required fields.
- To find out your score, fill out the form below.
Why is CIBIL Score better than other Credit Scores?
The CIBIL score is a credit score generated by TransUnion, a credit rating service. The TransUnion CIBIL Credit Score is the gold standard of credit scores and the only one that matters when applying for a loan. While several credit bureaus produce credit ratings, CIBIL is the one that banks trust the most. In India, a Credit score can vary from 300 to 900, with a score of 700 or higher being regarded as desirable for loan or credit card acceptance. Before proceeding with any credit application, the lender verifies your credit score and credit history.
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