You can also check CIBIL score online.
If you have ever applied for a loan or credit card, then you must have heard the name of CIBIL score. But many people do not know what it means and how it can be checked without paying money. The good thing is that you can check your CIBIL score online for free very easily and in just a few minutes.
What is CIBIL score?
CIBIL Score It is a three digit number, which ranges between 300 to 900. This tells you your credit worthiness. This is based on your past credit behaviour. Like whether you paid EMI on time or not, how you used credit card, and how you managed the loan. A score above 750 is considered good and increases the chances of getting the loan quickly and at a lower interest rate.
Also read- CIBIL score is not only important for loan, it is also important for job, this mistake can prove costly!
How to check score for free
You can check your credit score for free once a year on the official website of CIBIL. For this you just have to enter some basic information. Like PAN card number, date of birth and email ID. After the information is verified, your credit report and score will be visible. Apart from this, many banks and financial apps also provide the facility to check CIBIL score for free anytime, so that you can track it from time to time.
Why is CIBIL score important?
Whenever you apply for a loan or credit card, the first thing the bank or lender looks at is your CIBIL score. If your score is high, it means you are a trustworthy borrower. The bank faces risk if the score is low. Having a good score not only helps in getting the loan approved faster, but you also get lower interest rates, higher credit limits, and better deals.
What things affect the score
Payment history is most important. If you pay EMI or credit card bill late, the score falls. Overusing your credit limit, applying for multiple loans at once, or closing old credit cards. All these things can damage the score. At the same time, timely payment and responsible use of credit gradually improves the score.
Easy Ways to Improve and Maintain Score
Pay attention to your score even before you need a loan. Always pay bills and EMIs on time. Keep credit card usage less than 30% of the limit. Avoid applying for multiple loans simultaneously. Check your CIBIL score and report from time to time, so that if there is any mistake in it, you can get it corrected.