The ease of buying products or availing facilities on borrowed money, such as via loans or credit cards, can be a boon if you are short of money to pay upfront. However, paying the sum back with any interest accrued within the repayment tenure is critical to ensure that it does not affect your CIBIL score. So what is the CIBIL score? The CIBIL score is a three-digit number that ranges between the values of 300 and 900 and is a measure of your ability to pay back borrowed money. As a score closer to 900 can get you better access to various credit products, the range between 750-900 is considered ideal. This score is calculated by TransUnion CIBIL Limited, which happens to be India’s first company that focuses on credit information by collecting and maintaining credit reports. These reports include your personal loans, home loans, credit card purchases, and other credit activities.
Importance of Having a Good CIBIL Score
The credit information collected by CIBIL is used as a database of all lenders to verify the creditworthiness of a borrower or credit applicant. A CIBIL score of over 750 is considered to be optimal by lending platforms and financial institutions. Having no credit history too is bad, as it makes it difficult for financial institutions lending money to be able to assess your level of creditworthiness. Maintaining a good CIBIL score, therefore, becomes essential to ensure that your application for borrowing money from a lender is not rejected owing to your payment history and credit exposure. Other advantages that you can expect with a good CIBIL score are better rewards and benefits from credit cards, higher card limits, quicker approvals when it comes to credit card applications, and better negotiation power. Your good credit score could also help you enjoy low loan interest rates, avail pre-approved loans, get longer tenure on loans, as well as gain access to discounts when it comes to loan processing charges and other fees.
How to Check CIBIL Score Online and Offline?
With so many advantages, it is wise to keep a check on your credit and repayment history using the CIBIL score. So, how do you check CIBIL score? You can easily get the online CIBIL score report form the CIBIL website.
Ø Steps to generate your online CIBIL score
- Log on to the official CIBIL website
- On the top right corner, click on ‘Get your CIBIL score’
- Opt for the membership package of either one month, six months, or a one year and pay the fee requested
- Complete the member registration by filling all the details such as username, password, name, email address and telephone number
- Once your account has been created, you will be able to check your CIBIL score and report.
Along with the CIBIL website, the online CIBIL score can also be checked using the Finserv MARKETS app.
The CIBIL score report can be generated offline too.
Ø Steps to generate your offline CIBIL score
- Download the CIBIL score form from the CIBIL official website
- Accurately fill out the details requested for
- Attach a demand draft of INR 550 for CIBIL score and CIBIL report, or INR 164 for CIBIL report only, in favour of TransUnion CIBIL
- Mail the form with the demand draft to the following address:
TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited), One Indiabulls Centre, Tower 2A, 19thFloor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013
- After receiving and processing your request, your detailed CIBIL report and score, or only CIBIL score, will be mailed to your mentioned address
In 2017, the RBI or Reserve Bank of India ordered all credit bureaus of the country to compulsorily offer one free CIBIL score report in every calendar year. To get your free CIBIL score report, you need to follow the steps below.
Ø Steps to check your free CIBIL score
- Log on to the official CIBIL website and click on free CIBIL score
- Click on ‘Get yours now’
- Fill out your Personal Information which includes email address, password, name, ID details (Valid IDs- Income Tax ID No., Passport Number, Voter ID Number, Driver’s License Number, Ration Card Number), date of birth, and mobile number, and click on ‘Accept and Continue’
- Next you will have to verify your Identity by entering the OTP sent by CIBIL or provide additional information requested to verify if its you
- Once verified, you will get your free CIBIL score as well as your free CIBIL report.
Your entire financial history reflects on your CIBIL score and report. This has direct repercussions on your credibility as a borrower in the future. As a result, paying your bills in time, as well as keeping a tab of your credit score is critical to not jeopardize your chances of availing borrowed credit when you need it most. Opt for trusted sources of getting access to this valuable information such as the Finserv MARKETS app or the CIBIL website, and stay aware and ahead always.