Checking your CIBIL score or credit score is considered a good habit. You can check your credit score anytime and as often as you wish to. It is advised that before applying for a credit card, you should check your CIBIL score. Checking your credit score before applying loan provides you with a better idea about your credit history. It will also inform you if there are any problems with the loan approval. Also, you should check your score a few months in advance, as it allows you to plan in advance.
Another issue that you can encounter when you check your CIBIL score frequently is rectifying your errors. If there are any errors in the CIBIL report, they should be rectified immediately as they will reflect in your credit report and impact your credit score negatively.
A soft inquiry does not reflect on your credit history. When you check your credit score or when you receive a pre-approved credit card offer from a lender – these incidents are considered a soft inquiry.
Who is categorized under soft inquiry?
When you apply for any credit card or car loan or home loan, the lender requests your credit history before approving your loan or credit. The requesting of your credit report is considered a hard inquiry.
Differences |
Soft Inquiry |
Hard Inquiry |
impact on credit score |
Doesn’t impact your credit score |
Impacts your credit score |
Reflect |
Doesn’t reflect in the credit report |
Reflects on your credit report |
When is it done |
For providing pre-approved offers |
Before loan or credit |
Consent |
No consent is required |
Written consent is required |
Percentage |
Factors |
30% |
Payment History |
25% |
Credit Exposure |
25% |
Credit Type and duration |
20% |
Other factors |
1. Repayment Behavior
Your repayment behavior is one of the most influential factors affecting your CIBIL score. Timely repayment of all your credit or loan will help you maintain a good CIBIL score while any default or missed payment will negatively affect your CIBIL score.
2. Exceeding Credit limit
A credit limit is an upper limit on how much you can spend on your provided credit. It is important that you adhere to the credit limit. Any spending more than your credit limit negatively affects your CIBIL score.
3. Unpaid Dues
Always clear your unpaid dues as it will allow you to plan your finance better. Any overdue repayment will negatively impact your CIBIL score.
Along with the above-mentioned factors, there are a few other factors that can affect your CIBIL score negatively such as paying only the minimum amount due, making multiple credit applications, errors in your CIBIL report, and not having a credit mix and credit history.
You can easily check your CIBIL score at any time on CIBIL’s official website.
Step 1. Visit CIBIL’s official website www.cibil.com
Step 2. Enter the required information in “Get your CIBIL score” section.
Step 3. Provide the supporting documents and confirm your details.
Step 4. Once you receive your OTP on your registered mobile number, you can check your credit score at Myscore.cibil.com
CIBIL Score |
Creditworthiness |
Loan Approval |
550 and below |
Bad |
Low |
550 and 649 |
Poor |
Difficult |
650 and 699 |
Average |
Possible |
700 and 749 |
Good |
High |
750 and 900 |
Excellent |
Very High |
Improving your CIBIL score is an ongoing process. You can’t improve your CIBIL score in a day or two. CIBIL score is improved over a period of time, the longer the credit history the better it is. Your long credit history helps the lenders understand your credit behavior over a period of time. It also helps in building a level of trust as compared to someone who has no credit history or has a negative CIBIL score.
Improving your CIBIL score is a straightforward process and borrowers complicate it with poor financial habits. You can improve your CIBIL by:
You can check your CIBIL score at any given point in time. You should not hesitate to check your CIBIL score on regular basis. Frequent CIBIL score check allows you to better manage your repayment and credit. Also, it helps you to check and rectify if there is any fraudulent activity with regard to the CIBIL report.
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