CIBIL score is a rating given to borrowers for their past credit repayment history, which shows the credit discipline of the person and also creditworthiness. It can help the lender reduce losses due to credit default by customers. Financial institutions look into the CIBIL score of the person while approving loans or credit cards to a borrower.
What is CIBIL Score?
The CIBIL Score is a three-digit number ranging between 300 and 900. The higher the score, the better it is. Generally, a score above 750 is considered good where the chances of loan approval become higher. The report containing this score is called CIBIL Report.
The CIBIL report allows the bank to have a look at a person’s credit history, including whether the person has ever defaulted on any of his/ her previous debts. It also shows how many loans has the person taken so far, including the amount and the duration of the previous credits. It helps banks mitigate risks of defaults and hence reduces losses.
How To Check CIBIL Score Online?
CIBIL provides one Score and Report without any charge once a year. That can be checked online. Following are the steps through which you can check the CIBIl score:
1) Go to 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) Type in 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 a one-time password (OTP) on your registered mobile number. Type in the 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 see your CIBIL score
How to Improve CIBIL Score And Maintain It?
Keeping a good credit score is important to get a loan or credit card from any bank. Here’s are some of the important tips:
Pay Dues Within Time: Repayment of loans or credit card dues has a very big impact on your CIBIL score. So, any loan or credit card dues must be repaid within time to maintain good CIBIL score.
Low Credit Dependency: The credit utilisation ratio should be limited to 30 per cent for a good CIBIL score. It is advised to get a credit card with a higher top limit, if you are struggling to stay within the existing limit of the card.
Diversified Loan Products: It is better to diversify the loan portfolio with a good mixture of both secured and unsecured debt in order to get a high CIBIL score. A credit card is an unsecured debt, whereas a home or vehicle loan is a secured debt.
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