Nov 17, 2023
Know How to Check CIBIL Score Online & its Benefits
Oct 13, 2023
The process of checking your CIBIL score online is a straightforward process, and it can provide you with several benefits. In this article, we’ll discuss how to check CIBIL score online and what are the main benefits of a good CIBIL score:
What is a CIBIL score?
A CIBIL score is a three-digit numeric summary that represents an individual’s creditworthiness based on their credit history and repayment behaviors. CIBIL scores typically range from 300 to 900, with higher scores being better. In getting the right interest rate or approval for any loan, the CIBIL score plays a crucial role for every individual.
Full form of CIBIL:
We often get a question from the user: what is the full form of CIBIL? Or like CIBIL Score meaning? The actual full form or the CIBIL score meaning is – Credit Information Bureau India Limited. It is the credit score given to individuals by this credit rating agency known as TransUnion CIBIL.
Importance of CIBIL score:
As we now know what is a CIBIL score is, it is crucial to understand the importance of CIBIL score. CIBIL score is more than just a credit score. Borrowers can learn about their credit status by looking at their CIBIL score. A person who manages his finance we’ll always have a higher CIBIL score. A lower CIBIL score signifies the applicant has low creditworthiness and banks and other financial organizations can reject their loan applications.
How CIBIL score gets calculated?
To know how to check CIBIL score it is important to understand how the CIBIL score gets calculated. Calculating the CIBIL score often can be a complex process and it depends on different factors. Credit scores are calculated based on a number of factors, including payment history, credit utilization, credit length, and recent credit inquiries. Checking your CIBIL score online is easy with multiple tools that are easily available online.
CIBIL Score Check Process:
The process of Checking your own CIBIL score is pretty simple. There are multiple tools that are available for CIBIL score checks. To do a CIBIL score check online you can visit https://www.cibil.com/ and follow the below steps:
Create an account: If you are doing this process for the first time, then you need to create your account by providing personal details and documentation such as PAN card or basic other personal identification.
Verify your details: After submitting all the details, you may need to verify all the details with some security questions or by uploading the documents to the portal.
Generate your CIBIL score:
After submitting all the details you can generate your CIBIL score and the CIBIL score will be visible on the platform itself. You might also receive an email with the same details.
Review your CIBIL report:
The credit report will offer comprehensive insights into your credit history, encompassing information about your credit accounts, payment track record, existing loans, and additional particulars. Examine the report meticulously to verify its precision and confirm the absence of any inconsistencies.
Please note: as CIBIL is not a free platform to check CIBIL score online, you may need to pay a nominal fee to check your CIBIL score. To know how to check CIBIL score for free? You may refer to some different online options for CIBIL score check for free. They might help you to generate a free CIBIL score. Or you can opt for different options of CIBIL score check online for free.
How much CIBIL score is good?
According to various reports, in India, a CIBIL score which is above 650 is considered as a good CIBIL score. For a better understanding, you can check the below table to have a better idea of different CIBIL score range:
Benefits of a Good CIBIL score?
Having a good CIBIL score is always going to help any individual to access quick funds, quick approvals on loans, lower interest rates on loans, and many other benefits. Here are some of the key benefits of having a good CIBIL score in India:
| CIBIL Score Range | Rating |
|---|---|
| 300-499 | Poor |
| 500-649 | Average |
| 650-749 | Good |
| 750-900 | Excellent |
Access to Credits:
Individuals with high CIBIL scores are more likely to qualify for loans and credit cards since lenders are more likely to approve their applications.
Better Loan Terms:
Lenders often provide lower interest rates and better loan terms to people who have higher CIBIL scores.
Higher Credit Limits:
It is very easy to get a higher credit limit on credit cards, line of credit, or even on personal loans if you have a good CIBIL score and good credit history.
Increases the Creditworthiness:
A higher CIBIL score actually proves the creditworthiness of the applicant. If the applicant has a Good CIBIL score then the chances of approval of his loan are much higher as compared to others who have a lesser CIBIL score.
Quick Loan Approvals:
A high CIBIL score can expedite the loan approval process, helping you access funds swiftly when needed.
Lower Insurance Premium:
Individuals with higher credit scores may be offered lower premiums by insurance companies due to their perception of lower risk.
Personal Financial Management:
A good credit score reflects responsible financial management, which can encourage better financial habits and decisions.
How to Improve Your CIBIL Score?
As now we know the benefits of a good CIBIL score, now let’s discuss what are the steps that you can take to increase your CIBIL score:
Disciplined Repayments:
Never miss or delay any repayments of your credit card bill, your EMIs, or any other loan that you have taken so far. Delaying any repayments makes a huge impact on your credit score. You can avoid this by adding reminders for your repayments.
Maintain your old Credit Cards too:
If you have old credit cards then it is a good habit to maintain them as well. It will help you to make a long credit history and it will improve your creditworthiness as well as your CIBIL score.
Avoid Multiple Loan Applications:
Applying for multiple loan applications at once significantly affects your CIBIL score. Multiple loan applications in a very short duration can have a negative impact on your credit score. We suggest having a financial plan accordingly.
Have Different Types of Credits:
Having different types of credits also can improve your CIBIL score. Having different credit such as – Credit Cards, Personal Loans & Line of Credit can have a positive impact on your CIBIL score since it proves your ability to manage different credits at one moment.
Settle Current Outstandings: To have a good CIBIL score is always great to settle all the current outstanding credits. Make sure not to have any defaulted account as it can have a negative impact on your credit history.
Maintain your Credit Inquiries: Only apply for credit when you truly need it. Avoid making too many inquiries for new credit. Each inquiry can lower your CIBIL score.
In conclusion, understanding the CIBIL score meaning, learning how to check your CIBIL score is a crucial step to maintaining your financial portfolio. Even if you don’t have to pay the additional fee for the CIBIL score check, you can opt for a CIBIL score check free and other options as well. The benefits of maintaining a good CIBIL score are manifold. A high CIBIL score opens the door for quick access to funds, lower interest rates, quick approvals, and a higher credit limit. A high CIBIL score also enhances your creditworthiness and it also supports your financial management.
