CIBIL score is a three-digit numerical representation of a person’s overall credit history, comprising details like their performance in handling finances, debts, expenses, payments, etc. It helps estimate an individual’s creditworthiness; this score goes on to imply how credible or responsible a person is, in the financial front.
CIBIL or the Credit Information Bureau (India) Limited is the nodal credit bureau which maintains the financial records of every Indian citizen. It came into existence in 2000. Ever since its establishment, CIBIL collects, maintains, and provides credit-related details of individuals as well as entities.
CIBIL score, being one of the key determinants of a person’s creditworthiness, is usually referred to by lending institutions before sanctioning a loan. Applicants who do not have a good CIBIL score risk chances of loan rejection, and they are more likely to pay a higher rate of interest when compared to others. It is advisable to keep a check on your CIBIL/credit score from time to time if you intend to borrow in near future.
How to check your CIBIL score for free?
If you go on to apply for a personal loan with a poor credit score, you risk greater chances of application rejection because of high risk associated with lending. Such scenarios can affect your CIBIL score, further lowering your chances of successful approval. It is one of the many mistakes which you must avoid while applying for a personal loan.
You can check your credit score completely free of charge once in a year, a facility extended by the credit bureau for any Indian citizen. Read the steps below to understand how to check your CIBIL score online for –
Step 1: Visit the official website of CIBIL.
Step 2: On the top right corner of the home page, click on the option saying ‘Get your CIBIL Score’.
Step 3: You will then be redirected to the annual subscription page. Here, you need to select your ‘Free Annual CIBIL Score’ subscription plan.
Step 4: Create your account by providing your name along with email ID, password, date of birth, mobile number, and identity proof (PAN card, Aadhaar card, voter ID card, passport, or driving license).
Step 5: After entering all the details, click on the ‘Accept and Continue’ button.
Step 6: Next, you will have to verify your details by entering the OTP sent to your mobile number. After that, click on ‘Continue’.
Step 7: On the next page, you will get a notification confirming your enrollment success.
Step 8: Proceed to check your CIBIL score by clicking on the dashboard.
Step 9: You will be redirected to a new page where you can see your CIBIL report and score for free.
Once you have registered yourself on the site, you can log in with your email ID and password to check your CIBIL score. But if you wish or need to check your score more than once in any fiscal year, you will have to buy a subscription plan.
One of the main reasons behind applying for a personal loan only after checking your CIBIL score, as recommended by financial experts, is that if you look up your credit score beforehand and find that it is marginally low to avail funds, you will still have the chance to improve CIBIL score instead of worrying about the possibility of rejection.
A borrower himself has a major role to play in his or her loan approval. If you check the pre-requisites and meet the specified eligibility criteria of a loan, the possibilities of successful loan approval automatically increase.
If you want to increase the chances of successful loan approval even further, you can look for special offers extended by financial institutions. For example, companies like Bajaj Finserv provide pre-approved offers to existing customers. Available on several financial products (including personal loan, business loan, etc.), these features will simplify your application procedure. Check your pre-approved offers now by sharing only some essential details.
Do not neglect the role of CIBIL score while availing funds. Check your credit report and credit score to understand your credit profile, and make the necessary changes in your spending habit to improve the same.