Do you plan to apply for a loan? If you are thinking of doing so, then it would be quite useful to check your CIBIL score.
What is a CIBIL score?
CIBIL score is a three-digit number which reflects a loan seeker’s creditworthiness and comes in useful while applying for a loan, whether it a home loan, auto loan or a personal loan.
Lenders consider your CIBIL score while approving your loan and new credit application and finalising the terms to offer.
Having a good CIBIL score helps you to secure a loan smoothly and even at lower interest rates in many cases. Also you can get a loan for a higher amount if your CIBIL score is good.
You should always be aware of your credit score. Checking before applying for loan can help you avoid sending an application with a high possibility of rejection.
Also, checking your CIBIL score helps in rectifying any discrepancy or error in your profile. So let us find out how to check the CIBIL score.
How to check CIBIL Score?
With several platforms offering free CIBIL score checking solutions, it is possible to complete the process online in minutes. You can either log on to the CIBIL website to check credit score or use other service providers and tools from financial institutions for a free CIBIL Score check.
You need to fill a simple form with your details. These include your name, date of birth, ID proof, contact number, address and income details.
Once you get access to your CIBIL score and credit report, check for any errors and go through the factors that influence your score.
What is a good CIBIL Score?
CIBIL considers four important factors, which include your repayment history, credit utilisation, credit enquiries, and the types of credit you have. Each of these factors accounts for a certain percentage of your CIBIL score. Generally, a CIBIL score of 850 and above is excellent and implies high creditworthiness.
After this, a CIBIL score between 750 to 849 is considered good enough for your creditworthiness, while and a score between 700-749 is considered okay.
On a credit score check, if your score is below 650, you need to analyse and take the necessary actions to improve your score.