In a world where needs and aspirations are changing every second, the need for a financial product, particularly loans, is rising among the masses. Gone are the days when cars were the privilege of a few elite. But now, with the advancements in banking technology and an uplift in the economy, anyone earning decent can buy a car on a loan, if not by paying the whole price in one go. Similarly, one can buy a house or holiday with his/her dear ones on the back of a loan.
Since the applications can visit the banking desk fast, there becomes the need on the part of the lending institutions to check your credit profile before disbursing you the credit. The profile is checked through your credit score and report highlighting your ability to service the debt. To your delight, you can check your credit score free. Let’s check out the process by which you can do the same.
How to Check Credit Score Free?
Well, the credit scores are generated by several credit bureaus including CIBIL on the basis of servicing a debt, be it a personal loan or a credit card, for at least 6 months. Of the bureaus operating in India, it’s CIBIL whose credit score is given more weightage than the ones generated by other bureaus. It’s because of the massive credit data available with CIBIL.
Coming back to checking the score free, you would be glad to know that it can be done on the website of CIBIL. You just need to create a login by mentioning a few personal and credit details. Make sure to enter your name, PAN number, residence address, loan or credit card account number, etc, correctly for the login to be created smoothly. Once the details are verified successfully, you can choose the User ID and password as per the instructions.
As soon as you create a login, you can just use your credentials to enter into a page wherein you can check the CIBIL score. Checking the score remains free once a year. There are three subscription models you can choose from. The monthly, half-yearly and yearly subscriptions come at ₹550, ₹800 and ₹1,200, respectively.
How Much CIBIL Score Should You Have?
An ideal CIBIL score should be 750 and above for a hassle-free approval to credits, particularly the unsecured personal loans and credit cards. However, the lending institution can give a nod even if the score ranges between 700-750. A score of 650-700 can be deemed okay for secured debts such as home loan and loan against property.
Personal Loan for CIBIL Defaulter – Is It Possible?
Being a CIBIL defaulter means the repayment history is fraught with payment defaults made with respect to the previous loan or card dues. Although it’s a negative marker but can still help you gain an approval. Yes, a personal loan for CIBIL defaulter is quite possible. You can get it by virtue of mortgaging your fixed deposits you may have. It’s called a secured personal loan and can be given at a lower rate of interest.