Your CIBIL score is a reflection of your creditworthiness, and you should check your CIBIL score often. It is based on your history with credit and lenders use it to assess your profile. In most cases, lenders have a minimum requirement, which is a score of at least 750.
This is considered a good score and is the ideal CIBIL score range for most loans. Naturally, a score closer to 900 would help you qualify for better credit deals, whereas a score lower on the CIBIL score range will make it challenging to get approval.
Today, you can check your CIBIL score with free services offered by various financial institutions. This can help you stay credit ready and avail new credit with ease. Read on to know the steps to check your CIBIL score and the factors that affect it.
Easy guide to check your CIBIL score
There are two ways to check your CIBIL score – via the official CIBIL website and through the official CIBIL partner websites.
- Through the official CIBIL website
Step 1: Visit the CIBIL website
Step 2: Click on ‘Get Free CIBIL Score & Report’
Step 3: Create your account by filling in the required details
Step 4: Click on ‘Accept & Continue’ after ensuring the information is correct
Step 5: Verify your identity by submitting the OTP
Step 6: Click on submit to get your login credentials
Step 7: Login with your credentials and click on ‘CIBIL Score’ tab
Step 8: Check your CIBIL score
If you have already created your account, you can directly login on the official website to check your CIBIL score. Keep in mind that CIBIL only allows you to conduct a free CIBIL score check once a year. To check your score frequently, you will need an active subscription.
- Through third-party websites
Step 1: Visit a lender website of your choice
Step 2: Find and select the tab to check your CIBIL score
Step 3: Fill in the required details
Step 4: Submit the information
Step 5: Check your CIBIL score
Many lenders allow you to check your CIBIL score for free multiple times a year. You can take advantage of this service to improve your creditworthiness and stay within the optimal CIBIL score range.
Factors that affect your CIBIL score
- Repayment history: This refers to your repayment behaviour. You can have a score in the optimal CIBIL score range if you pay your dues in full, and on time.
- Credit utilisation: This factor refers to the credit you have used against your total credit limit. You should try to keep your credit utilisation at 30%, meaning you should not use more than 30% of the total credit assigned to you.
- Credit mix: This refers to the mix of unsecured and secured credit. It is crucial to maintain a balance in these two credit types.
All these factors ultimately dictate how well you can handle credit and your CIBIL score. Moreover, these factors are recorded in your credit report, and lenders assess it too.
The score gives them an idea about whether you are a low-risk or a high-risk borrower. Generally, a low-risk borrower gets affordable loan terms such as competitive interest rates, flexible tenor, high loan amount, and more.
On the other hand, as a high-risk borrower, it can be challenging to get approval for a loan or access favourable terms. This is why you should check your CIBIL score before you apply to ensure you make the cut.
Steps to improve your CIBIL score
There are a number of factors that positively and negatively affect your CIBIL score. By focusing on the former, you can improve your score with ease. Here are a few helpful tips.
- Pay your dues on time and in full
- Avail credit only when absolutely necessary
- Regularly check your CIBIL score and credit report
- Avoid sending too many credit applications in a short time
- Be mindful about how you use your assigned credit
Benefits of a regular CIBIL score check
Regularly checking your CIBIL score has its benefits, which are:
- Ensures that the report is error-free
- Informs you about the effects of financial actions on your score
- Makes sure that your credit mix and utilisation ratio is ideal
- Provides insight into your current financial situation
- Enables you to make informed decisions
When checking your score, review your credit report too. It contains detailed insights about your score and your financial standing. It can also pinpoint the areas you need to focus on. With this information, you can work towards an excellent score and avail favourable credit deals.