Tips to Do a Free CIBIL Score Check

New Delhi : When establishing your creditworthiness, lenders consider your CIBIL score as one of the most vital factors. The CIBIL score ranges between 300 and 900, where above 700 is generally considered favourable for securing credit. 

Therefore, your chances of getting a loan improve if you have a good credit score. Consequently, you can maintain track of your CIBIL score by frequently reviewing your credit record. Please keep reading to learn how to do a free CIBIL score check. 

6 Easy Steps to Check CIBIL Score Using PAN Card

Here are the steps you need to follow to do a free CIBIL score Check online with your PAN Card. Please take note that you can access your free CIBIL score only once a year. After that, however, you need to pay a subscription fee and run multiple credit score checks.

Step 1: Visit the official CIBIL website at cibil.com

Step 2: Click on the “Get your CIBIL score” option after scrolling down.

Step 3: You can select a subscription type if you want to sign up to check your CIBIL score in the future periodically. However, if you need to check your score once, you can also skip this step.

Step 4: Next, you must enter your PAN number, gender, email address, birth date, and a CAPTCHA code on the following page. Once you've completed all the necessary text boxes and agreed to the terms and conditions, click the "Proceed to Payment" button.

Step 5: Choose a payment option of your convenience.

Step 6: Your CIBIL score will show up on a page when you've finished the aforementioned process.

Importance of a PAN Card to Check Your CIBIL Score

To check your CIBIL score, you must have a PAN card for various reasons, such as:

• Your bank accounts and financial details are all recorded on your PAN card.

• Your PAN card number is the primary way to validate your identity and credit history. In addition, because it is specific to you, the PAN number makes it simpler for bureaus to trace down and access your credit information.

• Your PAN card and Aadhaar card are interlinked. Therefore, checking CIBIL scores with a PAN card helps lenders identify people with multiple loans.

Benefits of Checking Your Credit Report and CIBIL Score Regularly

Doing a CIBIL score check online on a regular basis will provide you with the following benefits:

● Identify How Your Actions Affect Your Credit Score

You can manage your finances better by monitoring your credit score. This will allow you to assess whether your actions have a favourable or unfavourable impact on your credit score. Therefore, understanding your risk factors will help you avoid them and maintain a high CIBIL score.

● Ensure Accuracy in Information

Regular CIBIL score checks will help you to eliminate inaccurate information and errors. An error or inconsistency in your credit report can sometimes result in a poor credit score. In this scenario, you need to immediately get in touch with your lender and the credit bureau to straighten things out.

● Get Better Loan or Credit Card Offers

You can stay informed about your present financial condition by checking your CIBIL score whenever it's convenient for you. Moreover, based on this information, you can decide whether you're a low-risk candidate and qualified for new credit.

● Keeps Your Credit Utilisation Ratio Under Control

A high credit utilisation score says you are credit hungry and have over-spending habits. Ideally, credit utilisation should be within 30% of your credit limit. Thus, a regular CIBIL check can help ensure that you have kept your credit-utilisation rate under control.

How to Increase CIBIL Score

There are several ways on how to increase your CIBIL score to be a suitable loan candidate. Here are the top 3 methods:

1. Maintaining a Spotless Repayment Record

Your credit repayment history indicates if you can balance your finances well by paying your bills and dues on time. It also shows if you have outstanding loans, which means you may not be a reliable borrower, failing to repay on time. Hence, you must try to keep a clear repayment history.

2. Avoiding Too Many Loan Applications

Applying for multiple loans within a short period affects your CIBIL score through multiple hard enquiries. Therefore, avoid making multiple loan applications as it tells the lenders that you are in a financial crisis which does not make up for a desirable candidate. 

3. Maintaining a Healthy Credit Mix

Your capacity to effectively handle the various available loan options is indicated when you can service a mixture of secured and unsecured credits. In addition, it makes your profile appear more creditworthy and strengthens your chances of getting a loan.

Usually, lenders check your financial profile to make lending decisions. You can benefit from having a good credit score as it gives you access to good loan facilities with affordable interest rates, rewards, and other perks. Therefore, you should keep a close eye on your credit score and only apply when your profile is suitable. You can do so with just a few clicks online on the websites of various lenders offering a free CIBIL score Check.