Here’s How You Can Check Credit Score Online

CIBIL, or the Credit Information Bureau (India) Ltd. is one of the four licensed credit bureaus in India. They collect information regarding the credit history of individuals and assign a three-digit number between 300 and 900 that indicates the person’s creditworthiness. This number is called the credit score, or here, the CIBIL score. The higher the CIBIL score, the more creditworthy the individual. 

Maintaining a good credit score can come in handy, especially when availing loans. Knowing that you have high creditworthiness, financial institutions will readily give you loans. It also helps you obtain loans at lower rates of interest. A regular credit score check will help you know where you stand and what you can do to improve your CIBIL score.  

Let us look at the significance of a good CIBIL score, the parameters for credit score checks, how to improve your CIBIL score, and how to easily check your credit score online. 

How to check credit score online?

You can get both a free credit score check, or you can get a paid credit score check. The process is roughly the same in both. 

1. Go to the website – If you are looking to get a free credit score check, go to the CIBIL website. You can even subscribe for services according to your preference. 
2. Register with CIBIL – If you don’t already have a CIBIL account, this is where you register an account with them. Enter details like email address, preferred password for CIBIL account, name, mobile number, ID type and number, pin code, etc. If you already have an account, you can log in using your credentials. 
3. Verify your identity – This is for those who create their accounts for the first time. You are required to confirm your identity in response to the verification email sent to your registered email address. 
4. Provide credit information – If required, add information regarding your credit history. Once this is submitted, your credit score check begins and you will receive your CIBIL score in the inbox of your registered email ID. You can also view the same in the Dashboard of your CIBIL account. 

Parameters for Credit Score Check

A CIBIL score is the summary of the credit history of an individual presented in a numeric form. The parameters that weigh in on a credit score check are as follows:

• Repayment history – Here, the repayment pattern of an individual is considered. If the individual consistently pays off dues before the due date, it leads to a higher score. Consistent delayed repayments on the other hand, cause the CIBIL score to drop. If these delayed repayments are more recent, they will affect the CIBIL score negatively more than older delays.
• Loans vs Income – The income of the individual is compared to the quantum of the loans taken. If the individual consistently takes loans much higher than their income can afford, it leads to a lower CIBIL score. In other words, the higher the loan balance, the lower the CIBIL score, and vice-versa. There is a misconception that the slab of income tax for salaried employees affects the credit score, but this is not so. The CIBIL score only looks at the income, to compare it to the credit history. Information regarding income alone does not have any effect on the CIBIL score. 
• Write-Offs and Defaults – If there have been write-offs in the recent past and if the frequency of write-offs is high in the credit history of an individual, the CIBIL will be lower. Multiple instances of default in repayment of secured loans will drag down the CIBIL score significantly. 
• Type of loans taken – Loans are either secured with collateral, or unsecured (credit cards). There should be a good mix in the types of loans taken. Higher the credit card balances, lower the CIBIL score. If the individual has shown a pattern of relying on unsecured loans more than secured loans, it is considered negative and will lower the CIBIL score. 

Significance of a Good CIBIL Score

A CIBIL score over 700 is considered good. This score can be shown to banks and other financial institutions to establish your creditworthiness when you apply for loans. A good CIBIL score has many benefits, some of which are:

• Loans are approved faster
• During credit score checks, you can also receive a credit report. When you have a good credit score, the report will also reflect that. Such a credit report will serve as good verification document, and you won’t have to submit multiple references to prove your creditworthiness. 
• As mentioned above, you can receive loans at lower interest rates. 
• The higher your CIBIL score, the bigger the loan amount you can borrow. 
• A good CIBIL score also allows you to set up flexible repayment terms and tenure. 
• If you have a good CIBIL score, financial institutions will readily lend money to you. This gives you many excellent options to choose from. 

Get a free credit score check now and based on your credit score, determine the changes you can make to your credit patterns.