Credit score is a 3-digit numeric summary of your credit history and ranges between 300 and 900. It represents your past credit behaviour and depicts how well you have managed credit products, like personal loans, credit cards, home loans, etc.

• CIBIL is one of the 4 Credit Information Companies (CICs) or Credit Bureaus in India that maintain your credit score and credit report.
• Credit score, also commonly referred to as "CIBIL score" - provided by TransUnion CIBIL, is primarily a measure of your ability to borrow from banks and NBFCs/HFCs.
• Your credit score calculated and generated based on your credit information provided by the lenders to these credit bureaus. 

To ensure bureaus have your latest credit information, RBI has mandated all lenders to report the updated credit information to all bureaus every 15 days.

Paisabazaar enables you to check your Credit score free from CIBIL and other bureaus. You can track your updated score from these bureaus seamlessly every month - at zero cost. Here’s how you can check CIBIL score for free in 3 simple steps:

1. Navigate to the ‘Credit Score form’ to get started.
2. Enter basic details, such as name, gender, mobile number, and email address and click on the ‘Get Free Credit Report’ button.
3. On successful verification through OTP sent to your mobile number, you will get credit scores from multiple credit bureaus.

You have to follow these steps only when you check credit score for the first time. After that, you can simply login to your Paisabazaar account using your mobile number and OTP to check latest credit score from multiple bureaus for free.

Do note that your credit score is not impacted when you get it at Paisabazaar or through a credit bureau’s platform directly.

Your credit score is one of the first things that a lender, bank or NBFC will check while evaluating your loan or credit card application. Your CIBIL score shows lenders whether you are a reliable borrower with minimum risk or a risky one, as well as the likelihood of you repaying a new loan on time.

• A good credit score would not only help you access credit, but it may also help reduce your interest outgo for a loan.
• Many banks/NBFCs offer preferential low-interest rates to applicants with a good credit score and repayment history.
• The higher your credit score, the more likely lenders are to approve you for new credit.
• Usually, a CIBIL score of 760 and above is considered a standard benchmark and preferred by lenders for loan or credit card approval.
• Many Banks and NBFCs also approve applications if the CIBIL score is between 700 and 760.
• In case your credit score is low (below 700), then try to improve it at the earliest or else the lender might reject the application without even considering it further.

Also Read: How Long Does it Take to Improve Credit Score?

However, your credit score is not the only factor considered for a person’s ability to get a new credit. Lenders also consider your income, repayment capacity, debt-to-income ratio, employment history, profession, etc., before approving or rejecting your loan or credit card application.

Today, most lenders consider a credit score of 760 and above from CIBIL as a good credit score. Getting the loan or credit card application approved becomes relatively easier if you have and maintain a CIBIL score of 760 or above.

However, it is possible to have a CIBIL score of 760 or above and have a credit score from another bureau below 700 at the same time. Hence, you must keep a tab on credit scores from multiple bureaus. It is advisable to check your credit score once every month.

Your credit score ranges from 300 to 900, where the score closer to 900 is considered better for credit approval.

Let us have a look at the credit score ranges that most lenders and bureaus consider while evaluating your credit applications:

*These credit score ranges (i.e. Excellent, Good, etc.) are based on Paisabazaar's own criteria and are generally accepted in the industry.

Your credit score depends on a lot of factors that the credit bureau takes into consideration while calculating your credit score. These factors depict your past credit behaviour and are fetched by banks and NBFCs, every time you apply for a fresh credit product.

Factors that Affect your Credit Score

Some of the key factors that influence your credit score are:

• Repayment History (High Impact): Timely payments can boost your credit score and help improve it significantly, whereas defaulting on your EMIs or making late payments negatively affects your credit score.
• Duration of Credit History (Moderate Impact): The duration or age of your credit history also affects your credit score. If you have had credit cards/loans for a long period and showed responsible usage, then it is a sign of good credit behaviour.
• Number of Hard Inquiries (Moderate Impact): Every time you apply for a new credit product, the lender inquires about your credit score. Such inquiries are known as hard inquiries. Multiple hard inquiries in a short span may have a considerable short-term impact on your credit score.
• Credit Utilisation (Moderate Impact): The ratio of the credit amount you spend to the credit amount available to you is known as the credit utilisation ratio. Experts recommend keeping your credit utilisation ratio to less than 30% of your available credit limit, though even a higher CUR barely has an impact on your credit score as long as you pay your credit card bill on time.
• Credit Mix (Low Impact): If you have taken different types of credit, such as secured products (auto or home loans) or unsecured credit, like personal loans or credit cards, and have responsibly paid them back, it shows your ability to handle different kinds of credit and has a positive impact on your credit profile.

In addition to the 5 primary factors affecting your credit score, issues like credit report errors, lack of credit history, or default by someone you’ve guaranteed a loan for can also have a mild negative impact.

Also Read: Common Myths about Credit Score

Though your CIBIL score is not the only thing lenders assess while considering a loan or credit card application, it is arguably one of the most important factors. Maintaining a good credit score comes with several benefits that include:

• Greater chances of your loan applications being approved, as a high credit score indicates higher creditworthiness and lower risk for the lender
• You are more likely to receive lower interest rates on loans
• You can get easy and quick approval for your loan and credit card applications
• Access to pre-approved loans based on your eligibility
• You can avail higher limits on your credit cards
• Discount on processing fees and other charges

Suggested Read: What Are the Benefits of a Good CIBIL Score?

Reasons Why you may have a Low CIBIL or Credit Score

There can be several reasons for a low credit score. Some of the main factors that can lower your CIBIL score are:

1. Missed or late payments of credit cards and loan EMIs
2. Maxing out your credit limit or having a high credit utilisation ratio regularly
3. Errors in your credit report/ CIBIL report can also lower your score significantly
4. Frequent or multiple hard inquiries for credit can also damage your credit score
5. Closing the oldest credit account if other credit accounts are relatively new (It reduces the age of the credit history)
6. Settling the loan or credit card account instead of paying it in full and closing the account

A low CIBIL score can make it difficult for you to get your loan or credit card applications approved. You can take the following steps and adhere strictly to it to increase your CIBIL score:

• Start paying your loan EMIs and credit card bills on time. Do not miss payments under any circumstances.
• Reduce your excessive dependency on credit and try to reduce your credit utilization ratio, especially if you max out your credit card limit regularly
• In case of errors in your credit report, get it rectified at the earliest from the credit bureau. For this, you should fetch your credit score online regularly through Paisabazaar and if there’s a fall, do check the report for errors.
• Avoid applying for multiple loans or credit cards very frequently. It is advisable to wait for six months to avail the latest credit instrument before you apply for credit again.
• Avoid closing your oldest credit card. A longer credit history helps lenders make credit-related decisions with more confidence.
• Keep a good mix of secured (home loan, car loan, etc.) and unsecured credit (personal loan, credit card, etc.) in your profile.
• Seek expert advice from Paisabazaar’s Credit Advisory Services to improve your credit score significantly.

Apart from the fact that Paisabazaar offers CIBIL score for FREE with monthly updates, you can also check, monitor, and compare your credit scores from other credit bureaus like Experian, CRIF High Mark, and Equifax. Paisabazaar helps you check, track, and build your score by enabling you to:

Check your credit score seamlessly

• Through Paisabazaar (web & app), you can check and compare your credit score from multiple bureaus instantly and for absolutely free.
• Since it's a digital instant process, you can access your latest credit score in a few seconds from anywhere, anytime for free.

Get customised offers

• Those with healthy credit profiles can also avail of the best pre-approved loan and credit card offers from India's top banks and NBFCs.
• These offers have no/minimum documentation and usually have instant disbursals and issuance.

Chances of Approval feature

• You will be matched with the most-suited lender and offer for personal loans, based on your credit score along with other eligibility factors.
• This will help you apply for the right offer from the right lender, minimising the chances of rejection of your loan application.

Build or repair credit score

• To improve access to formal credit, Paisabazaar also offers a personalised credit advisory service that helps customers understand their credit report and improve their CIBIL score.
• Paisabazaar also provides an exclusive credit health report, with deep analysis and insights.

Paisabazaar’s Credit+ Program – Credit Improvement Service

To help consumers with poor credit health rebuild their credit profile, Paisabazaar offers Credit+: A credit improvement service.

• Understand the reasons for damaged credit and the actions needed to improve it
• Get personalised advice and recommendations
• Get assistance in resolving all errors in the report.
• Best-suited for consumers, with low CIBIL score due to negative account
• Those who are seeing a sudden dip in their credit score can also benefit

Credit Health Report (CHR) - Understand Credit Score Better

Paisabazaar also offers a subscription-based Credit Health Report (CHR).

• Get detailed credit report with personalised advice and insights
• Check what has changed in the credit report recently
• Know the factors impacting your CIBIL score.

Seamless Experience via Technology Innovations

Paisabazaar is committed to helping consumers take informed credit decisions, enabling strong credit health across segments using technology. Our state-of-the-art technology innovations include:

Credit Score Predictor

• Simulate how different credit actions can impact CIBIL score
• Enter details such as the addition or closing of a credit account, missing payments or prepaying the loan outstanding, increasing or reducing the credit utilisation ratio, etc.
• Based on the input, Score Predictor forecasts the CIBIL score

PB Assist AI Chatbot

• This industry-first chatbot empowers consumers to make informed credit decisions
• Choose an option from various scenarios and get detailed insights
• You can also ask a question directly on the platform and get the answer in real-time.

PB Video Credit Report (PB VCR)

• This AI-powered VCR explains your credit profile in a self-explanatory video.
• Provides actionable insights to build and maintain a high score
• This first-of-its-kind visual and intuitive format of this tool is integrated with Credit Health Report

• TransUnion CIBIL Limited (formerly known as Credit Information Bureau (India) Limited) is a credit bureau that generates, maintains, and calculates your CIBIL score.
• While TransUnion CIBIL is the oldest, three other credit bureaus in India offer credit report services, such as Experian, CRIF High Mark, and Equifax.
• Each credit bureau calculates your credit score independently based on the credit information that is provided to it by banks/NBFCs regularly.
• Each credit bureau has its own model or algorithm for calculating your credit score; hence, your score from each credit bureau shall vary.

Also Read:

• Difference between CIBIL, Experian, Highmark, and Equifax
• Tips to Repair Faulty Credit Report

At Paisabazaar.com, you can check your credit score online for FREE and download customised credit reports. We have a partnership with all four leading credit bureaus, including CIBIL, that enables you to check, track and build your credit score at absolutely zero cost.

Please note that fetching your credit report once or multiple times does not have any impact on your score, and it takes just a few minutes.

• At Paisabazaar, you can get your free credit score with monthly updates on the app and the website.
• You can also have a look at various factors that impact your score and how you have performed against them.
• In case you want to download a detailed Credit Health Report generated by Paisabazaar, you will have to subscribe to it.
• It is worth noting here that your credit score from various credit bureaus, such as CIBIL, Experian, Equifax, etc., remains the same in both cases (free and paid).
• The subscription enables Paisabazaar to provide detailed analysis in the Credit Health Report.
• A subscriber can see what’s changed in the report, how the factors are impacting the credit score, important suggestions to rebuild the falling score and raising a dispute with the bureau in case of a grievance.
• The paid report has proven to be very beneficial for people who want to improve their low scores and become eligible for some of the best loan and credit card offers.

Also Read: Found Error in Your Credit Report? Here's How to Raise a Grievance

• There can be errors in your credit report, and these have the potential to damage your credit score significantly.
• You should check your credit score regularly and whenever you find such an error in your credit report, get it resolved immediately.
• Errors that occur in your credit report can be incorrect account status, repayment not updated, inaccurate personal details, wrong credit enquiry information, etc.
• You can raise a grievance immediately with the lender/credit bureau or seek expert assistance to rectify it by subscribing to Paisabazaar’s Credit+ program.

Written By: Shamik Ghosh

Paisabazaar in News

• Paisabazaar Launches PB VCR - India's First AI-based Video Credit Report - The Week
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• Paisabazaar Launches PB Assist, India's First AI-driven Credit Advisor - Business Standard
• Paisabazaar launches ‘Score Predictor’ to help you understand credit behaviour - CNBC TV18
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