Credit score or CIBIL score is a numerical representation of an individual’s financial history, where the previous debts, their repayment history, and other details are summarised in numbers. Here are important facts on CIBIL score –
- CIBIL score ranges between 300 and 900.
- For assured approval of credit card or unsecured loans, a score above 750 is considered.
Before extending any credit facility, a lender would check an applicant’s CIBIL score as well as credit history to apprehend the risk associated with lending. Individuals have the option to check CIBIL score without login from several third-party websites; they can also check the same from the official website of CIBIL by logging in with their personal details.
How to check CIBIL score?
A borrower can check credit score in two ways –
1. Via the official website of the credit agency
Step 1: Log in to the credit agency’s official website
Step 2: Make a request for credit report
These steps are, however, preceded by necessary details being furnished by the customer. A user is required to submit his or her valid ID details, for example their PAN, passport, Voter ID, etc. for verification. After document verification, credit score and report can be accessed through the dashboard.
It is to be noted in this regard that credit report is different from CIBIL score. While credit score is a 3-digit number between 300 and 900, the report is an elaborate document. CIBIL score is included in the credit report. The credit report reflects credit behaviour across all loans.
2. Check CIBIL score without login
CIBIL score can be checked without login or even without having to lodge the request through the credit agency. All it is needed is to furnish the Permanent Account Number (PAN). Here are the simple steps by which CIBIL score may be checked in just 2 minutes –
Step 1: Visit the CIBIL score page
Step 2: Enter the name as mentioned in PAN card
Step 3: Enter correct date of birth
Step 4: Mention gender
Step 5: Enter correct PAN card number
Step 6: Provide the required details like residence address, email address, and mobile number
Step 7: Enable the ‘Agree to Terms and Conditions’
Step 8: Click on the final submit button
Many lenders also provide a live link on their official website for borrowers to be redirected to the CIBIL page. This allows an individual to check whether they are eligible for a credit or not, and apply for the same immediately afterward.
Reputed lenders also extend pre-approved offers to make the loan application process easy and less time-consuming. The offer is usually associated with different financial products such as business loan and personal loan. You can check your pre-approved offer by simply sharing your name and contact number.
3. Factors that impact the CIBIL score
The CIBIL score of an individual is affected by a whole range of factors. The major factors are –
- Delay in repayment
Any delay while repaying the outstanding due is likely to negatively impact the credit score. Such delay may be of any kind, be it missed, partial or delayed payment.
- Credit limit exceed
It is advised to keep the credit utilization ratio capped at 30%. If it exceeds 50% of the sanctioned credit limit, the CIBIL score can get affected.
- Maintaining balance between unsecured and secured loans
Loans can be both secured and unsecured. In the first case, collaterals such as gold or property are pledged against the funds. Example of a secured loan is a home loan.
On the contrary, in case of unsecured loans, such as a personal loan, no security or collateral needs to be pledged. It is a good idea to avail a personal loan to meet unexpected financial needs. However, one’s credit portfolio should have a healthy mix of both secured and unsecured credit.
Checking CIBIL score without login or from the official website of a credit bureau can help a prospective borrower understand where they stand with their credit profile. CIBIL score is important for personal lending as it offers a complete overview of an individual’s creditworthiness.