The CIBIL score is used to determine the creditworthiness of a candidate. It’s a three-digit numerical summary of your credit history and rating that ranges from 300 to 900. The CIBIL score is used to assess a candidate’s ability to repay a loan. This is why banks verify a borrower’s credit score before proceeding with the loan application procedure. If your CIBIL score is strong, there’s a good possibility you’ll be able to receive a loan without any difficulties and with a speedy loan amount disbursement. The nearest your credit score is to 900, there are more chances of yours to get approved for a no-hassle loan. There are several CIBIL-related websites where you get to know how to check CIBIL score by submitting some basic information.
Free CIBIL Score Check
On the official CIBIL website, you can check your CIBIL score for free, however there is a fee associated with this.
On the official CIBIL website, you can check your CIBIL score for free only once.
Because CIBIL scores are such an important factor in acquiring any type of loan nowadays, many of our partners and other banks provide free CIBIL score checks. You won’t have to worry about costs, and you’ll be able to verify your CIBIL scores in a matter of seconds. You should use CIBIL Score Check free to look up your scores on CIBIL-powered websites so that you can get your true credit scores and create plans to improve your credit history.
Various third-party companies in India, such as Amazon Pay, Wishfin, Paytm, and others, offer free CIBIL score checks. Instead of paying exorbitant fees to check your credit ratings on a regular basis, free CIBIL scores are a more convenient solution.
CIBIL Score Composition
The variables that make up your CIBIL score are as follows. The CIBIL score is generated based on following components :
- 30 percent as repayment history
- Types of credit used and the length of time they were used as 25 percent
- 25 percent as credit utilisation ratio
- 20 percent as due to other variables
The causes of a low CIBIL score
This can happen if you haven’t applied for a loan or credit card, or if the credit bureaus lack sufficient information about your credit history. In this case, your CIBIL score will include a note about the lack of credit history. To build a substantial credit history, you’ll need both time and patience. Depending on how successfully and frequently you use and manage credit, it could take six months or a year. A good credit score takes time and work to get. If you want to obtain and maintain an excellent credit score range, you must continue to work and pay your obligations on time. It’s impossible to overestimate the value of consistency in building and maintaining a solid credit score. Most common causes of a poor CIBIL score are.
- Absence of credit history or payments
- Loans obtained in the incorrect combination
- Several loans have been acquired.
- Credit utilisation ratio is high.
How to Raise Your CIBIL Score
- Paying your bills on time is important more than you can realize.
- Keep your credit utilisation to a minimum. To put it another way, keep your credit usage ratio low.
- Applying for many credit cards is a bad idea.
- Maintain a close eye on your credit report on a regular basis.
- Balance the many types of credit limits and other loans you have. A proper mix of secured and unsecured loans should be on your credit account.
- Keep track of previous loans or debts on your credit account, especially the ones that have a longer loan tenure.
- Finally, remember to be patient and consistent.
The CIBIL score is one of the most essential considerations when applying for a personal loan or any other type of credit. In the case of unsecured loans, such as personal loans, the CIBIL score is the only element on which lenders can base their decisions. They evaluate your repayment capability based on your credit score, and if the lenders are confident that you will be able to return the loan on time, you will be approved for the loan without difficulty. Always check CIBIL score before obtaining any form of credit or any loan such as a personal loan or a home loan.