Free Online CIBIL Score Check: Why and How?

CIBIL score plays a significant role for both borrowers and lenders during a loan application. CIBIL or the Credit Information Bureau (India) Limited is a credit information repository that issues CIBIL or credit score to an applicant. This score denotes an individual’s creditworthiness and his/her repaying ability and behaviour.

A loan application might get rejected if an applicant has a low CIBIL score; thus, one must opt for a free CIBIL score check online. Before that, one must know why checking credit scores routinely is important.

Why are routine credit score checks important?

Routine checking of credit scores is a vital part of the credit borrowing process. Below are some of the salient pointers explaining the need for CIBIL score checks:

  • Makes it possible to check errors in the credit report
  • Helps an individual to get good rates on loans
  • To ensure one’s home loan application does not get rejected
  • Helps to control the credit utilisation ratio
  • Spot any potential identity theft or fraud
  • Help to analyse and improve CIBIL score

How to do a free CIBIL score check online?

One can check their CIBIL score from the official site of credit bureaus, third-party financial portals and other bank websites. Follow the below-stated steps to learn how to check one’s credit score online:

Step 1: Visit the official website of CIBIL.

Step 2: Click on the ‘get free CIBIL score & report’.

Step 3: Enter a few details such as name, mail ID, and password.

Step 4: Attach any one ID proof (Aadhaar card, PAN card, voter ID, etc.)

Step 5: Enter the PIN code, mobile number, and DOB.

Step 6: Hit the ‘Accept & continue’ option.

Step 7: Enter the OTP sent to the given mobile number.

Step 8: Click on the ‘Continue’ button.

Step 9: Click on the ‘Go to dashboard’ option.

Step 10: After clicking on the ‘Member login’ option, log in successfully to check the CIBIL score.

CIBIL score range and its meanings

Getting approval for a home loan application is much easier with a CIBIL score ranging from 750 to nearly 900. Given below are the different CIBIL score ranges and their meanings:

<600 (very low CIBIL score)

  • Creditworthiness: Needs attention
  • Approval probability: Low

600 – 649 (low CIBIL score)

  • Creditworthiness: Doubtful
  • Approval probability: Difficult

650- 699 (fair CIBIL score)

  • Creditworthiness: Fair/ Satisfactory
  • Approval probability: Possible

700- 749 (good CIBIL score)

  • Creditworthiness: Good
  • Approval probability: Good

750-900 (excellent CIBIL score)

  • Creditworthiness: Excellent
  • Approval probability: Very high

Why is it important to have a good CIBIL score?

Having an excellent CIBIL score (750+) increases the chances of home loan approvals. Additionally, it increases the chances of getting higher credit limits and lower interest rates. Higher credit score not only gives a borrower the authority to negotiate with their lenders but also get approvals for loans on rented properties.

Another evident perk of having a good CIBIL score is that many lenders offer pre-approved offers. These offers are related to numerous loan products like home loans, loans against property, etc. The borrowers have to provide some details such as full name, contact details, and others. This way one can check their pre-approved eligibility and fasten the overall loan application process.

How to improve the CIBIL score?

An ideal CIBIL for a home loan application is above 750. With this excellent credit score, one can be assured that lenders would not reject their loan application. Additionally, lenders will give good rates on the loan.

In case of a low credit score, one can consider taking the following steps to improve their CIBIL score:

  • One must restrict their credit utilisation as it gives a negative impression to the lenders as it shows that the person is too dependent on borrowings. One must keep the credit utilisation ratio below 30% for credit limits on all loans.
  • Financial debts have a negative impact on credit scores. Henceforth, one must clear all their existing debts within the chosen period to boost up their overall credit history.
  • One must make a habit of checking their credit score at an interval of time to spot any discrepancies in the credit report. In case of any error, one must get it corrected as soon as possible.
  • Without borrowing credit, the score would not increase. One has to take a varied type of credits to boost the CIBIL score gradually.
  • Paying EMIs within the chosen period is the most effective way of improving one’s credit score.

To conclude, use free CIBIL score check online and get into the habit of routine credit score checking. This will help in maintaining a discrepancy-free credit report.