The importance of the credit score has grown manifold over the recent years. It is a determining factor that drives most financial decisions. Made up of 3-digits, it can make or break your chances of availing credit products. This is why finance experts constantly emphasize the need for people to maintain a good credit score. Apart from fetching you the best credit offers, it also enables you with lucrative benefits that include a higher lending maximum, lower interest rates and longer repayment tenures.
In India, CIBIL is one of the most prestigious RBI-approved credit rating agencies. The company evaluates the credit behaviour of individuals by generating the credit score. The data evaluated by CIBIL is collected through leading banks and financial institutions across the country. The CIBIL score is backed by robust data analysis, making it highly trustworthy. Banks and NBFCs closely consider the CIBIL score before making a credit offering. This makes it extremely imperative for you to pay attention to your CIBIL score when seeking a loan approval.
Read on to know more about how you can check CIBIL score to get the best offers on lending products.
CIBIL Score – When is it Good?
A CIBIL score between the range of 700 to 900 is considered to be a good indicator of a borrower’s repayment behaviour. Irrespective of the type of loan you seek, the CIBIL score increases or detriments your ability to get an approved loan. An excellent CIBIL score will ensure that you get the best offers on personal loans, home loans, car loans and more.
Maintaining your CIBIL Score – actions to avoid
Undertaking certain actions can have a negative impact on your CIBIL score. Thus, it is important to keep a tab on your unintentional but impactful behaviour. Some of the things that you must steer clear of include:
Missing Repayment – Quite often, your demanding lifestyle may lead you to missing out on repayments. You must note that missing out even on a single payment can cause your CIBIL score to drastically drop. Late payments are reflected in your CIBIL report. Lenders will view your profile as that of an irresponsible borrower thereby dampening your prospects of enjoying credit.
Missing the Debt-to-Credit Ratio – The market is inundated with lenders making lucrative offerings from time to time. However, it is important that you borrow funds responsibly. As a borrower, you must limit your borrowing depending on your income. As a rule you must limit your debt to about 30% of the available credit. Utilizing more than this percentage regularly can have a bad influence on your CIBIL score.
Creating Multiple Credit applications – Creating multiple credit applications within a short span of time implies that you are a desperate borrower. Lenders check your CIBIL report and become wary upon spotting too many credit enquiries. Having too many credit enquiries also leads to a drop in your CIBIL score.
Step to Check the CIBIL Score
To check your CIBIL score, you have to visit the official CIBIL site. Follow the below-mentioned steps to get an update on your CIBIL score.
Step 1 – Visit the official CIBIL website i.e https://www.cibil.com/
Step 2 – Click on ‘Help Center’ listed under the Personal tab.
Step 3 – Next, select the ‘Free CIBIL Score and Report’ Option.
Step 4 – The site will prompt you to enter your personal information including your email address, phone number, name and any personal ID number. You must also create a password.
Step 5 – Once complete, click on ‘Accept and Continue’ against the conditions laid out.
Step 6 – After completing the enrollment process, you can view your CIBIL score.
The site restricts the number of times that you can check your score. After the given limits, you will have to subscribe to the membership plans offered by CIBIL.
As you now understand, you must pay particular attention to your CIBIL score before you apply for a loan. Check your CIBIL score and ensure that it is good enough to put in your application. If your score is not as good, you do not have to worry. Financial discipline and consistency in maintaining good borrower habits go a long way in helping you attain the best score. You can also use the Finserv MARKETS Credit Health Report Check to always keep a tab on your score.