If you are planning to take a loan at an affordable interest rate, you must ensure that your CIBIL score is on point. It is certainly the most crucial factor that lenders take into account when evaluating one’s eligibility. Read on to know what CIBIL score is and how to check it online.
What is CIBIL Score?
CIBIL or Credit score is a three-digit number that denotes the borrower’s credit history, report and rating. In simple words, it determines one’s creditworthiness. The CIBIL score ranges between 300 and 900. The higher one’s score is to 900, the better the credit history.
When opting for a loan, banks and lending institutions check creditworthiness through credit history before preparing a credit report. Credit history refers to the borrower’s repayment record – repayment of debts, credit card bills, previous loans, etc. The credit score typically takes over 18 to 36 months to build up.
Importance of CIBIL Score
When a borrower approaches the lender for a loan, the first thing the lender checks is the credit score and credit report. A low CIBIL score gives a poor impression of the borrower’s repayment history and thus, leads to the rejection of the loan application. On the other hand, a high score denotes high credibility, thus prompting the lender into sanctioning the loan at competitive interest rates.
Usually, a score of 750 or above is considered an ideal CIBIL score for home loan or any other type of loan for that matter. It puts you in a better position of getting the application sanctioned. For those wondering what CIBIL score is good, here is a look at the range and ratings –
|CIBIL Score Range||Rating|
|300 – 500||Poor|
|550 – 650||Average|
|650 – 750||Good|
|750 – 900||Excellent|
5 Easy Steps to Check CIBIL Score Online
In case you are wondering how to know your CIBIL score, you can simply refer to these easy steps below:
- Visit the lender’s website
- Access the ‘Get Your CIBIL Score’ tab
- Share the following details –
- Employment type (Salaried/Self-employed)
- Name (as mentioned on PAN card)
- Contact number
- PAN card number
- Monthly salary
- Email ID
- PIN code
- Name of city
- Type of loan desired (Personal loan/Gold loan/Business loan/CA loan/Doctor loan/EMI card/Home loan in India)
- Carefully go through and tick the checkbox to agree to all Terms & Conditions
- Hit the ‘Submit’ button
You will instantly be able to view the CIBIL score on the screen. Once displayed, you can plan your loan application accordingly or work towards improving your low credit score (if applicable) to get the loan sanctioned in no time.
Tips to Improve CIBIL Score
While a low credit score can reduce one’s chances of getting lower interest rates and increase the odds of the loan application being rejected, there are ways to boost the CIBIL score. Here are a few quick tips:
- Be sure to pay your dues on time as late payments are often negatively viewed by lenders
- Maintain a good credit balance of secured and unsecured loans as too many unsecured loans (credit cards and personal loans) can be negatively viewed
- Have your credit limit customized
- Avoid opting for new credits or loans too often
- Closely monitor joint/guaranteed/co-signed accounts at regular intervals – keep in mind that any default in payments or negligence will adversely affect the credit score
- Review credit history throughout the year to spot any discrepancies
- Choose a longer loan tenor
In the event of an emergency or when looking to achieve your financial goals, you may require access to credit. Therefore, it is important to keep a check on the CIBIL score and regularly monitor your credit profile to ensure you stand an excellent chance of getting the desired loan on time.