edited by: Mohammad Haris
Last Update: February 24, 2023, 18:05 IST
Regular credit score monitoring minimizes the effects of identity theft by promoting prompt and appropriate action.
The CIBIL score is a three-digit number, which ranges between 300 and 900; the higher the score the better
The CIBIL score of the borrower is looked at while seeking loans from banks or any other financial institution. Scores range from 300 to 900. The higher the score, the better. Generally, a score above 750 is considered good, where the chances of loan approval become higher.
What is CIBIL score?
The CIBIL score is a three digit number, which ranges between 300 and 900. The higher the score, the better. Generally, a score above 750 is considered good, where the chances of loan approval become higher. The report containing this score is called the CIBIL Report.
The CIBIL report allows the bank to take a look at the credit history of an individual, including whether the individual has defaulted on any of his previous loans. It also shows how many loans the person has taken so far, including the amount and tenure of previous credits. It helps the banks to reduce the risk of default and hence reduce the losses.
Importance of CIBIL Score
If you go for a loan or apply for a credit card, the bank checks your CIBIL score to ensure your creditworthiness and risk profile. The CIBIL report allows the bank to take a look at your credit history, including whether the person has been on time in repaying his previous loans. It also shows how many loans the person has taken so far, including the amount and tenure of previous credits. This includes both credit cards and loans. It helps the banks to reduce the risk of default and hence reduce the losses.
Banks approve loans only if your CIBIL score is good. So maintaining a good score is very important. The score saves individuals from any paper hassle to prove past credit records. Banks also give cheap loans to those who have a good CIBIL score.
How to check CIBIL score online?
CIBIL provides a report once a year at no cost. Which can be checked online. Following are the steps through which you can check CIBIL score:
1) Visit the official website of CIBIL 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 receive 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 log in, you can view your CIBIL score.
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