CIBIL/Credit Score is a numeric representation that summarizes your credit summary and depicts your creditworthiness and repayment capability. When you apply for a loan, the first thing any lender checks is your CIBIL score, before processing your application. CIBIL, now known as TransUnion CIBIL (Credit Information Bureau (India) Limited) generates and delivers a 3-digit number that ranges between 300-900, wherein any score closes to 900 is considered good by banking institutions and NBFCs. Therefore, if you meet the minimum credit score limit set by the lender, your application will be processed further and faster. Maintaining a good credit score helps in getting a loan approval faster and at lower interest rates.
Checking your CIBIL score is one of the easiest and simplest tasks, as it just requires you to fill in few personal details and get the report/score emailed periodically at your email address. As we know that CIBIL score is considered as a backbone of one’s financial health. Therefore, to keep a regular check on one’s CIBIL score is just like being financially fit. Most of the times people with score less than 750 find it difficult to avail lending products at lower interest rates. So, to ease up your loan approval process it’s better to maintain credit score as close to 900.[/vc_column_text]
Components of a CIBIL score
Personal Information: Consists of your full name, gender, date of birth, PAN, voter’s ID and passport number
Contact Information: Contains telephone numbers and up to 4 latest addresses
Employment Information: Monthly or annual salary information provided to bureau by banks and NBFCs
Account Information: Holds information of types of loans, account numbers, ownership details, balance payments, etc.
Enquiry Information: Record of each and every application submitted by the customer for lending purposes.
Advantages of a good CIBIL score
- Lower interest rates on loans
- Easy loan approval
- Ease at availability of credit cards
- Increased negotiating options
- Easy credit availability
Generally, rebuilding of credit score is a time consuming process and improved results are gained gradually. Therefore, getting discouraged in seeing your low credit score is not a good idea. Working on the same to get better results will be wise decision. Therefore, be patient and continue to work to get even stronger hold on your finances.
Steps to Improve Your Credit Score
- Paying bills on time
- Regular reviewing of credit report
- Maintaining good mix of credit
- Lowering credit utilization ratio
- Monitoring co-signed loans
- Not closing old accounts
- Not availing unsecured loans
- Not exhausting available credit limit
Good credit score doesn’t mean that your loan application will be accepted/approved automatically. The lender will surely check and consider your repayment capabilities before disbursing any loan amount.
If in case you are planning to avail a loan, it is advisable that you check your credit score for mistakes. The credit bureau doesn’t collect the information on its own, they compile the information provided to them by various lenders, therefore the possibility of errors during the compilation of records cannot be ruled out. Errors in your credit report can delay the loan approval process or at times result in rejection of loan. So, it is better that you check your credit score before going for loan, to avoid any unnecessary delay.
How to check CIBIL score @ Paisabazaar.com?
Get CIBIL report or check credit score, absolutely free from Paisabazaar.com with regular updates, by just filling in few important details. You just need to follow these simple steps to get your CIBIL report instantly:
- Go to Paisabazaar.com, click on ‘Get Report’
- Select your Gender
- Add your name as per your PAN card
- Select your Date of Birth
- Add your PAN card number and the PIN code of your residential address
- Select your City
- Provide your PAN card and mobile number
- Mention your specific email address on which you want to get your CIBIL report
- By selecting the below check box, you agree to the terms and conditions of Paisabazaar.com
- Click on ‘GET FREE REPORT’ and get CIBIL report within minutes.
After adding all the details, kindly recheck that the mentioned details are correct as per your information.
Alternatively, you can also check CIBIL score from TransUnion CIBIL’s official website, as well.
By choosing Paisabazaar.com you can get your credit score absolutely free, moreover you have an option to compare and choose from multiple deals available on various lending products from credit cards to types of loans. However, your CIBIL score will eventually play a vital role in getting you any lending product at comparatively lower interest rates. So, it’s advisable to check your CIBIL score at the first instance and if found it not satisfactory, then apply the required measures to improve it at the earliest.