CIBIL Score There is a rating given to borrowers for their past credit repayment history, which also reflects the individual’s credit discipline and creditworthiness. This can help the lender in reducing the losses due to credit default by the customers. Financial institutions look at the individual’s CIBIL score while approving a loan or credit card to the borrower.
What is CIBIL Score?
CIBIL Score is a three digit number between 300 and 900. The higher the score, the better. Generally, a score above 750 is considered good, where the chances of loan approval are high. The report with this score is called CIBIL report.
The CIBIL report allows the bank to take a look at an individual’s credit history, including whether the individual has defaulted on any of his previous loans. It also shows how many loans the individual has taken so far, including the amount and the period of previous credits. It helps banks to reduce the risk of default and hence minimizes losses.
How to check CIBIL score online?
CIBIL provides a score and report once a year at no charge. Which can be checked online. Following are the steps through which you can check CIBil score:
1) Visit the official CIBIL website https://www.cibil.com/
2) Select ‘Get your CIBIL Score’
3) Click on ‘Click Here’ to get your free Annual CIBIL Score
4) Enter your Name, E-mail ID and Password. Attach an ID proof (Passport Number, PAN Card, Aadhaar or Voter ID). Then enter your pin code, date of birth and also your phone number
5) Click on ‘Accept and Continue’
6) You will get One Time Password (OTP) on your registered mobile number. Type OTP and select ‘Continue’
7) Select ‘Go to Dashboard’ and check your credit score
8) You will be redirected to the website myscore.cibil.com
9) Click on ‘Member Login’ and once you are logged in, you can view your CIBIL Score
How to improve and maintain CIBIL score?
It is important to have a good credit score to get a loan or credit card from any bank. Here are some important tips:
Pay the dues within time: Paying off loan or credit card dues has a huge impact on your CIBIL score. Hence, any loan or credit card dues must be paid off within time to maintain a good CIBIL score.
Low Credit Dependency: The credit utilization ratio should be limited to 30 percent for a good CIBIL score. If you are struggling to stay within the card’s current limit, it is advisable to get a credit card with a higher top limit.
Miscellaneous Loan Products: It is better to diversify the loan portfolio with a good mix of both secured and unsecured loans to get a high CIBIL score. A credit card is an unsecured loan, whereas a home or vehicle loan is a secured loan.
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