CIBIL score is a three-digit number that ranges from 300 to 900 and shows how creditworthy a person is. It is calculated by carefully looking at a person’s credit records and files. The CIBIL number comes from the Credit Information Bureau (India) Ltd., a credit rating company that is approved by the Reserve Bank of India.
Credit reports and CIBIL scores can be viewed by anyone, not just banks and non-banking financial companies (NBFCs). These scores are based on your credit records, which could include anything from how well you’ve paid back loans to how well you’ve paid off credit cards.
Your credit past and behaviour are the only things that go into your CIBIL score, which is between 720 and 900. It has many benefits for the user, such as quick approvals, lower interest rates, and a bigger loan amount.
If you have a good CIBIL score, you have a better chance of getting the best interest rate and getting your loan faster.
So, a score of 700 to 900 will be thought of as good.
How to Check My CIBIL Score Online? : A Step-By-Step Guide
Get access to your CIBIL score for free by following this step-by-step guide. Empower yourself with valuable credit information as you easily check and monitor your CIBIL score online.
- Head to the official CIBIL website and select the “Get Free Cibil Score and Credit Report” option.
- Enter the required information like your name, date of birth, email address, pin code, phone number and attach an ID proof like Aadhar card, Passport, PAN card or voters ID. Click on “Accept and Continue”.
- Verify the OTP sent to your phone number by typing it in the next window and click “continue”. If you do not receive the OTP on the first attempt, click on “resend OTP” and follow the steps.
- Once the OTP is verified you can click on the “go to dashboard” button which will lead you to myscore.cibil.com
- Here click on member login to be able to check your credit score.
Credit Bureaus in India: Promoting Financial Transparency
In the realm of Indian finance, four credit bureaus hold the key to credit histories: TransUnion CIBIL, Equifax, Experian, and CRIF Highmark. Credit bureaus play an important role in the Indian financial system by providing lenders with information about borrowers’ creditworthiness.
Here’s a brief overview of the four credit bureaus in India:
TransUnion CIBIL: Established in 2000 with its headquarters in Mumbai,TransUnion CIBIL is India’s leading credit bureau, providing lenders and borrowers with comprehensive credit information to make informed financial decisions.
Equifax: In India, Equifax was granted the Certificate of Registration in 2010 by the RBI. The company is a global credit bureau offering valuable insights and credit solutions, empowering lenders and individuals to navigate the lending landscape with confidence.
Experian: Established in 2009, Experian is a trusted credit bureau with a vast data network, delivering comprehensive credit information and innovative solutions to lenders and individuals in India.
CRIF Highmark: Established in 2007, CIRIF Highmark is known for its cutting-edge analytics, offering lenders and borrowers advanced credit information and insights for effective decision-making.
What are the Benefits of a Good CIBIL Score?
A high CIBIL score is important and offers numerous benefits. Therefore, before asking for a loan, a potential borrower needs to be aware of the advantages. The following are some advantages of having a higher CIBIL score:
1. Lower borrowing rates
The biggest advantage of having a high CIBIL score is a reduction in interest rates. The likelihood of default affects the interest rate. As a lender, a high credit score assures you that the borrower will make timely and regular loan repayments. Because there is little chance of default, your lender can charge you a lower interest rate.
2. Higher Credit Limits
Your reliability and responsibility as a borrower are demonstrated by a high CIBIL score. Because of this, the lender might be more willing to grant you a larger credit limit on your card or a larger loan sum.
3. Higher Chances of Loan Approval
When you apply for a loan or credit card, every lender retrieves your credit report and examines your credit score. A hard inquiry is what it is, and each time one is made, your credit score is lowered. If your application is denied, the consequences could be disastrous.
However, if you have a high credit score and a solid credit history, which includes a history of making loan payments on time and regularly, your chances of getting your loan approved are very high.
A strong credit score also shows that you have not racked up debt that would make it impossible for you to repay the loan amount by taking out many loans from various lenders. Because the lender is certain that the loan will be repaid in full and on time, the approval prospects are quite high and practically guaranteed.
If your CIBIL score is between 700 and 900, you can expect a home loan for up to 80% of the total cost of the property.. Since personal loans are unsecured loans, these standards cannot be expected in this situation.
FAQ’s
1. Is 650 a good CIBIL score?
650 is quite near to the 670–739 range for a good credit score. With some effort, you could be able to improve your score to that level or even higher, giving you access to a wider selection of credit and loans with lower interest rates.
2. How can I improve my CIBIL score?
Pay your bills on time and build up a high score if you want to raise your CIBIL score. Use a service that enables automated bill payment to avoid worrying about missing due dates. There is such a thing as too much: Apply for credit responsibly. Do not take on much debt at once.
3. Why do I have a low CIBIL score? Why do I have a low CIBIL score?
Your CIBIL score will decrease if you make late payments on loans or just pay the minimum balance on credit card bills. Your CIBIL score will drop if you miss payments or default on your EMIs, which constitutes bad credit.
4. What does a (-1) credit score mean?
Negative (-1) or NH credit scores indicate that you have no credit history. It means that a person does not have any credit accounts and has not yet obtained any loans or credit from which to establish credit profiles.
5. Does taking a personal loan negatively affect CIBIL score?
Obtaining a personal loan is not in and of itself detrimental to your credit score. However, it can have a short-term negative impact on your credit score and make it more challenging for you to get new credit before the existing loan is repaid. Ensure you make timely payments towards the loan so there is no further damage to your CIBIL score.
