How to check your Credit Score & download your CIBIL report?

A credit score is a three-digit number that indicates how creditworthy you are. When you apply for a loan or a credit card, it’s the first thing lenders look at. It provides them an indication of whether you’ll be able to repay the loan on time or not. As a result, maintaining a decent credit score is critical. Making all your payments on schedule, monitoring your credit reports frequently, paying off existing credit card debt, and keeping your credit utilisation low below 30% can help you maintain your credit score.

What factors go into determining a credit score?

Each credit agency uses a different credit scoring model to calculate your credit score. Although your score may differ, the elements that each bureau considers are the same, and they are as follows:

• 35 % payment history
• 30 % credit utilisation
• 15 % of people have a long credit history.
• 10 % credit mix
• 10 % new credit

Lending institutions favour borrowers with strong credit histories and reliable repayment records. A corporation is better positioned to obtain the necessary funds from lending institutions if it has a strong credit history. The same benefits are available to an individual in the form of loans with cheaper interest rates and quicker disbursal times.

• Make changes to errors.

You must promptly contest any mistakes by going to the official website, www.CIBIL.com. After reviewing your CIBIL report, you can decide which transaction is incorrect or with which you disagree. Within 30 days, you must respond to the disagreements and make the necessary corrections.

• Note Your Credit Usage Ratio

Make cautious not to use your credit card for every purchase. Maintain a credit utilisation ratio of no more than 30%. Your CIBIL score will increase because of doing this.

• If you get rejected, stop applying for credit.

Your credit report will contain information on any loan or credit card applications you have made and were denied. If you immediately apply to another bank, they may reject your application if they see your low score and the previous rejection. The best course of action in these situations is to refrain from applying again and wait for the score to rise.

• Reduce the number of applications submitted.

The fact that every time you apply for credit, the bank will request your credit report from CIBIL and the inquiry will be noted in the report is another reason why you should refrain from applying for loans and credit cards too frequently. After each request for your report, the bank’s investigation could also lower your score. This means that even when you have every intention and ability to repay the loan or credit card on time, you have two disadvantages: first, you exhibit credit-hungry behaviour, and second, your credit score declines.

• Repay your debts

Make it a priority to start being on time with your payments if there are any loans for which you have been paying late. You can ask your bank to assist you restructure your debt if you are having trouble making ends meet with your existing EMI payments.

• On time credit card payment

The wisest course of action while using credit cards is to avoid exceeding the limit on those cards. Additionally, you need to make sure that you are paying back the entire balance or at least a sizeable sum on your cards rather than just the minimal amount required.

What is the best way to check one’s CIBIL score?

Let’s start with a definition of CIBIL (Credit Information Bureau (India) Limited). In India, CIBIL is a significant credit rating agency that assesses your creditworthiness. India can readily be described as a financially literate country because of CIBIL. It has improved the transparency, reliability, and structure of financial markets in order to raise awareness among financial institutions and businesses on how to manage risks and control bad loans.

A CIBIL check is done via the internet. Before giving any loan, banks and financial institutions assess the CIBIL score. Examine your credit profile on a regular basis to ensure that it accurately reflects your creditworthiness and is free of errors and anomalies. This allows you to keep track of changes and spot questionable activity. Here’s how to check your CIBIL score online in a variety of ways.

1. Through the CIBIL website

• Click “Get Your CIBIL Score” on the CIBIL official website.
• Complete the form with the necessary information (Name, DOB, ID proof, loan history).
• After submitting the form, you will be directed to the payment page. To obtain a credit report, CIBIL charges a fee.
• After you’ve made your payment, you’ll be directed to the authentication page. For authentication, at least three of the five questions about your credit history must be answered accurately. The report will be provided to your mailbox within 24 hours after it has been validated.

2. Use your PAN card to check your CIBIL score.

• Visit the TransUnion CIBIL website to get a free CIBIL score.
• Complete the form with the necessary information (name, DOB)
• For ID proof, choose ‘Income Tax ID Number (PAN)’ and fill in the required details.
• Select the sort of income and the amount of money you earn each month.
• Submit your address and contact information, such as your phone number and email address.
• Within 24 hours, you will receive the free report in your mailbox.

3. Use your Aadhaar card to check your CIBIL score.

For address verification, an Aadhaar card is necessary. For all the ways to check CIBIL score online, the address given must match the address on the Aadhaar Card.

4. Obtain a CIBIL Score by Entering Your Phone Number

Personal information must first be entered on the site in order to check your CIBIL score via mobile number. The user must then confirm their identification by sharing the one-time password (OTP) that they are given. To see their CIBIL score, they must submit the same information on the next page.

Besides income, CIBIL Score is one of the most important factors lenders consider when approving loans. The Credit Information Bureau India Limited, in collaboration with different authorised credit bureaus throughout the nation, calculates the CIBIL score. Your payment record, payment behaviour, current credit outlets, and the quantity of credit you have are factors in your score.The Indian lending industry has changed dramatically during the previous ten years. The credit bureau has increased financial literacy and urged consumers to keep their credit ratings in good standing. Since a personal loan is unsecured, such rules cannot be established. So, you can go for a personal loan for a CIBIL score of 550. Borrowers that are curious may get their CIBIL report and see where they are financial. When people know how much money they can borrow, it pushes them to keep their finances in order.