A credit score is a three-digit number that reflects one’s creditworthiness and is used as a standard parameter to gauge a loan applicant’s credibility. It is calculated based on past repayment history, the number of existing debts, previous credits, etc. All these details are recorded in an individual’s credit report prepared by a given credit bureau. Individuals can access their credit information by following a simple process of how to check good cibil score online.
On that note, there are four main credit bureaus in India – Experian, TransUnion CIBIL, Highmark, and Equifax. Further, as per the RBI mandate, borrowers can access one credit report, and perform a credit score check in a year for free from any of the four credit bureaus in the country. Opting for such a check can be considered a good financial practice as it will allow users to make a timely decision regarding any related funding parameter like information update, timely payments, etc.
To know how to check CIBIL score online for free, follow the steps below –
Step 1: Visit the official website of any of the four credit bureaus.
Step 2: Click on the option ‘how to check my credit score for free’. Once you click on this link, you will be taken to a new page.
Step 3: Next, you need to create an account by entering personal details like your name, contact information, email ID, date of birth, ID proof details, and the likes.
Step 4: Recheck the information before submitting it. Then click on ‘Accept’ to continue.
Step 5: You will receive an OTP on your registered phone number as a part of identity verification. Enter the OTP to continue to the next step.
Step 6: Your enrollment or registration will be confirmed once you enter the OTP. You will also receive a confirmation email on the email address provided by you.
Step 7: After getting enrolled, go to the dashboard to view your credit report and score for free.
You can also go for paid subscription plans of your convenience if you want to check your credit score for more than once in a year.
Why should one check their credit score?
One should know how to check CIBIL score online from time to time because of the following reasons –
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Eligibility parameter –
The credit score is one of the essential eligibility parameters that lenders refer to in case of the loan application, especially unsecured credits like personal loans, to gain an idea regarding a borrower’s repayment behavior.
Consequently, a favorable score indicates that the borrower makes timely repayments and follows financial discipline. In contrast, a poor credit score means that he or she cannot manage the credit responsibly. Plus, in cases where an individual carries a poor score, he/she should also know how to get a personal loan with a poor credit score.
Borrowers must also check their credit report and score at least two or three months before applying for a personal loan. They must also know what is a good credit score in India and confirm their status accordingly. A credit score of 750 and above is considered ideal for personal loans. Apart from a good credit score, one should also know other easy approval tips for a personal loan.
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Detection of fraudulent activity –
Knowing how to check CIBIL score online can help individuals learn about any errors in recording credit details in their name and help with prompt actions like applying for a rectification.
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Understanding credit status –
As mentioned earlier, a credit score is an essential eligibility requirement for unsecured loans. Lending institutions assess the risk profile of a borrower by referring to their credit score. Accordingly, they make decisions regarding the sanction of a loan application, interest rates, etc. As for the latter, apart from the CIBIL score, you should also know about other factors that affect your personal loan interest rates.
Further, besides credit bureaus, some financial institutions also provide free online CIBIL score calculator to individuals for quick score assessment. Apart from that, some financial institutions like Bajaj Finserv also provide pre-approved offers for a hassle-free loan application procedure.
Besides personal loans, such offers can be availed on several other financial products like credit cards, business loans, etc. Individuals can quickly check their pre-approved offer by entering details like their names and contact information.
Knowing how to check the CIBIL score online is thus crucial as it will help you take prompt actions that can help build up a positive credit history. Applying for unsecured advances like personal loans also increases the chances of quick application approval.
