Your CIBIL score is a crucial factor when it comes to securing a personal loan. A high CIBIL score can increase your chances of loan approval and help you secure favourable interest rates. Here’s a step-by-step guide to checking your CIBIL score, ensuring you’re well-prepared before applying for a personal loan.
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What is a CIBIL Score?
The CIBIL score, provided by TransUnion CIBIL, is a three-digit number that ranges from 300 to 900, summarising your credit history and creditworthiness. A score above 750 is generally considered good and significantly improves your chances of getting a personal loan on favourable terms.
Why is Your CIBIL Score Important?
Lenders use your CIBIL score to evaluate your creditworthiness. A high score indicates that you have a good track record of managing credit responsibly, while a low score suggests potential risk. Knowing your CIBIL score before applying for a loan helps you understand your credit standing and take the necessary steps to improve it if needed.
Step-by-Step Guide to Checking Your CIBIL Score
Step 1: Visit the CIBIL Website
Go to the official CIBIL website (www.cibil.com). This is the most reliable source for checking your CIBIL score.
Step 2: Sign Up or Log In
If you are a new user, you’ll need to sign up for an account. Provide basic details like your name, email address, phone number, and create a password. If you already have an account, simply log in using your credentials.
Step 3: Fill in Your Details
You will be asked to fill in personal information such as your date of birth, PAN card number, and address. This information is used to verify your identity and fetch your credit report.
Step 4: Verify Your Identity
CIBIL may ask a few security questions based on your credit history to verify your identity. Answer these questions accurately to proceed.
Step 5: Choose Your Subscription Plan
CIBIL offers various subscription plans, including one-time reports and annual subscriptions that provide continuous access to your credit report. Select the plan that suits your needs. For a single-time check, choose the one-time report option.
Step 6: Make Payment
You will need to make a payment to access your CIBIL score and report. CIBIL accepts various payment methods, including credit/debit cards and net banking.
Step 7: Access Your CIBIL Score
Once the payment is successful, you will be able to access your CIBIL score and detailed credit report. Review the report carefully to understand your credit standing.
Understanding Your CIBIL Score and Report
1. Credit Score
Your credit score is displayed prominently on the report. It reflects your creditworthiness based on your past credit behaviour. A score above 750 is ideal for securing personal loans with favourable terms.
2. Personal Information
This section includes your personal details such as name, date of birth, and contact information. Ensure this information is accurate.
3. Account Information
This section provides details of your credit accounts, including credit cards, loans, and their repayment history. Review this information to ensure all accounts listed are accurate and belong to you.
4. Enquiry Information
This section lists the number of times lenders have enquired about your credit report. Multiple enquiries in a short period can negatively impact your score.
Tips to Improve Your CIBIL Score
1. Pay Your Bills on Time
Timely payments of your credit card bills and loan EMIs have a positive impact on your score. Set reminders or use auto-pay features to avoid missing due dates.
2. Maintain a Low Credit Utilisation Ratio
Try to keep your credit card balances below 30% of your credit limit. High utilisation can lower your score.
3. Avoid Multiple Loan Applications
Each loan application can result in a hard inquiry on your credit report, which can slightly lower your score. Apply for new credit only when necessary.
4. Review Your Credit Report Regularly
Regularly checking your credit report helps you identify and dispute any errors or inaccuracies that may be affecting your score.
Conclusion
Knowing how to check CIBIL score is an essential step before applying for a personal loan. By following this step-by-step guide, you can easily access your score and take the necessary steps to improve it if needed. A good CIBIL score not only increases your chances of loan approval but also helps you secure better interest rates, ensuring you get the most favourable terms for your personal loan.