credit score

How to Check CIBIL Score Online?

It won’t be wrong to say that people dream even if they don’t disclose that in the open. The dreams remain undetached till the time it’s come true. When the dreams need a financial impetus, the focus remains pretty much on loans or even credit cards for that matter. Yes, we all dream to have a luxurious car and a well furnished flat in the city we reside in.

The cost of those dreams, however, can be much more than the balance lying in your bank accounts, making you apply for a loan or credit card to achieve the same. You can apply but bear in mind that the application will go through the stern eligibility test. The applicants will be tested rigorously on several fronts like income, savings, repayment capabilities, etc. But banks will first check your credit score before evaluating you on the parameters stated above.

The credit scores are generated by the credit bureaus such as CIBIL. It is one of the leading credit information companies providing credit scores and reports to those wanting to access these. So, you would ask this question, how to Check CIBIL score, won’t you?

Check Your CIBIL Score Free

You can check your CIBIL score free, but only once a year. More than that will cost you 500 and more. To check the same, you need to visit the official website of CIBIL and then fill all the relevant personal and credit-related details. The personal information would be your name, date of birth, PAN number, residence address, etc. On the other side, you need to furnish details of your loan or credit card accounts. Subsequent to filling these details, you can create a login ID and password to check the score, which ranges from 300-900.

CIBIL Score Calculation

CIBIL calculates your credit score on the basis of the credit details sent by member banks and non-banking financial companies (NBFCs) monthly to the credit bureau. These include your repayment track, any skipped or late payment incidence, the number of debts you are under, any debt settlement initiated, etc. Taking all that into account, CIBIL prepares a matrix and assign the scores accordingly. It also provides a detailed credit report highlighting the strong and weak areas. While you should keep up the good work, you must look to weed out the deficiencies to raise your CIBIL score. The report can even suggest the measures you should adopt to improve your CIBIL score.

What if Your Score Comes Out Lower Than Desired?

Well, when you check your score, it may come below the comfort zone of 700 and thus could make you wait till the time it goes past that level. So, if your score falls below the desired, you should then look to improve it. At first, you must know the reason for a poor score before taking steps to improve the same. A lower score can be a result of the following.

Late Payment or Default – Call it the mounting expenses or reckless spending, one can fall into the trap of late payment. Once or twice, late payment may not hurt your credit record much. But if it becomes a regularity, the score will come down rapidly. Also, with constant late payment, the eventual EMI or due grows big in number with the addition of penalties. This leads to a default and denting a massive blow to your credit profile.

Greater Credit Utilization Ratio A higher utilization of credit limit does make credit bureaus feel that you are credit hungry, raising question marks over the smooth repayment of a loan or credit card. This often translates into a poor credit score and makes fresh debt well out of your reach.

Too Many CIBIL Score Enquiries Not only checking CIBIL score regularly costs you but also lower it. So many enquiries create an impression that you are chasing credit like anything. You must not give such an impression as that leads to a poor score and shuts the door for a fresh loan or credit card.

You should thus bring a spending discipline that helps repay the loan EMI or credit card dues on time to raise your CIBIL score. Also, a higher credit limit does not tell you to utilize a majority of that. Be judicious with your credit card spends. Ideally, the credit utilization ratio should be well below 50-60% of the limit available.


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