Check Free CIBIL Score Online

Your CIBIL score is calculated based on the following factors:

1. Payment History: Your payment history plays an important role in generating your CIBIL score. Hence, paying your EMIs and bills on time can help you maintain a good balance.  
2. Credit Utilisation: A high utilisation of your credit denotes that you are highly dependent on credit. Having a credit utilisation ratio under 30% can help you secure a loan hassle-free. 
3. Credit Mix and Repayment Duration: A mix of secured and unsecured credit products, including credit cards, will help you maintain a healthy credit score. A longer tenure of servicing a credit product positively impacts your credit score.
4. Credit Inquiries: Credit inquiries are conducted to check your creditworthiness. If you have applied for multiple credits within a shorter duration, it will affect your credit score negatively. This will reflect credit-hungry behaviour, which is looked at negatively by lenders.

Considering the uncertainties of life, you might require a loan or credit at some point in time. When applying for a loan, a borrower with a high CIBIL score is likely to get quick loan approval compared to one with a low CIBIL score. This is one of the major reasons why the CIBIL score is important. A high CIBIL score will help build trust when it comes to loan repayment. This ensures that you receive attractive interest rates and other benefits.

CIBIL Score – Importance and Significance 

Let’s check out the top factors that highlight why CIBIL score is important. These will help you understand the role and importance of CIBIL so you can manage your finances accordingly:

•    Creditworthiness:
A major factor that stresses the importance of a CIBIL score is your creditworthiness. A good credit or CIBIL score establishes you as a creditworthy borrower. A high credit score indicates that you have been very timely and disciplined in your credit behaviour in the past. Therefore, chances are that this credit behaviour will continue going ahead, creating a good impression on lenders.

•    Loan or Credit Approval:
The importance of CIBIL score increases even more at the time of loan or credit approval as it determines borrower’s eligibility. The final call on the loan amount is made with CIBIL or credit score as a major guiding factor. A good CIBIL score ensures approval of the desired loan at a favourable interest rate. 

•    Attractive Interest Rate:
CIBIL score directly influences the rate of interest. An individual with a good credit score is eligible for the best interest rates available. On the other hand, someone with a poor credit score may get a loan at a high interest rate, which can impact repayment and finances. Therefore, maintaining a good CIBIL score is essential to get loans at attractive interest rates.

• A good credit score indicates a borrower’s creditworthiness. Hence, it would help if you made every effort to improve your credit score. A better CIBIL score will help avail a loan faster than a poor CIBIL score. As an individual, you can check your CIBIL score on CIBIL’s official website or trusted websites such as Poonawalla Fincorp. Along with a better CIBIL score, you must keep a check on your income, employment history, and other financial obligations. Below are a few ways to improve your CIBIL score. 

  •    Avoid making multiple loan applications: To improve your CIBIL score, you should avoid making multiple loan applications, as multiple rejections can negatively impact your credit score. You should make one application at a time to avoid such circumstances and wait for approval. 

  •    Maintain your Debt-to-income ratio: A debt-to-income ratio indicates that a borrower has enough money to repay a loan on time. A high debt-to-income ratio negatively impact your CIBIL score. Hence, you should maintain your CIBIL score to improve your chances of availing loan faster. 

  •    Choose your loan tenure: Tenure is a predetermined timeline between a borrower and a lender. While choosing a tenure, you must consider all the factors, as a shorter tenure will put a lot of pressure on the borrower. On the other hand, if you have a higher loan amount, you should opt for a longer loan tenure. 

  •    Make your repayments on time: Using the EMI calculator to plan your repayments in advance is advisable. Using an EMI calculator will help you plan your EMI and avoid delay or default in your EMIs. Paying your repayments on time will help you improve your CIBIL score. 

  •    Choose your Loan amount: You should choose your loan amount while considering all the factors. The outstanding loan amount and total loan amount directly impact your CIBIL score. A high outstanding balance can affect your CIBIL score.

You can get your CIBIL reports online by filling out an online form and providing verification documents. Here is the step-by-step guide for a free CIBIL credit score check:

Step 1: Click on ‘Resources’ in the top right corner of the screen. 
Step 2: Select “Check CIBIL Score”.
Step 3: Enter your details, such as first name, last name, PAN number, and mobile number.
Step 4: Verify your OTP and enter your date of birth, PIN code, and gender. Hit the ‘Submit’ button.

Once you have successfully submitted all the details, your CIBIL score will appear on your screen and will also be sent to your email ID provided.