How to Check CIBIL Score Online for Free
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Updated date : 21 May 2019
CIBIL is the short form of Credit Information Bureau (India) Limited. It is one of the oldest credit information companies in India that was established in the year 2000. As the name of the company says, it gathers and maintains financial (credit) records of companies and individuals. This means the company maintains the records of payments and borrowing related to credit cards and loans.
CIBIL gets all the credit-related information from its associated partners that include members of credit institutions and banks. The information of every individual is given to CIBIL once in every month and after that CIBIL generates the CIBIL score and CIBIL report. The CIBIL provides this report to the financial institutions (such as the bank) when they request for the same in order to approve or evaluate the credit card or loan applications.
In this way, CIBIL plays an important role in evaluating the creditworthiness of individuals as well as commercial entities. The CIBIL agency is governed by the Credit Information Companies Regulation Act, 2005 and is licensed by the Reserve Bank of India.
If one wants to check CIBIL score online, he/she will get a numeric score of three-digits. This score most of the times ranges from 300 to 900. In this range 300 is the lowest and 900 is the highest.
How to Check CIBIL Score Online for Free?
Every individual or company is entitled to check CIBIL score online for free once in each calendar year. Follow the below steps to perform online CIBIL check:
- Step 1: Visit the official website of TransUnion CIBIL and click the link that is there for a free credit report.
- Step 2: There one needs to create a CIBIL account by providing his/her name, telephone number, email address, etc.
- Step 3: Fill the form by providing the following information for verification of identity – gender, date of birth, postal address, and other identity proofs such as PAN card number, Aadhar number, etc.
- Step 4: Upon completion of the form, one has to accept the conditions and terms. Soon after this, the CIBIL shows the credit report that has a credit report.
Why Is It Important to Check CIBIL Score Online?
CIBIL score gives the first impression of the borrower to the lender. As soon as one fills and submits the loan application form or an application for credit card, the financial institution or bank checks credit score and report. If the score is good, the financial institution or bank approves the loan immediately whereas one having poor CIBIL score may encounter the rejection of the application.
A good score means one is managing his/her finances well by paying the money that he/she has taken from the bank or other financial institution on time. While a poor CIBIL score shows an individual’s negligence towards his/her finances.
In this way, the credit scores provided by CIBIL are deciding factor for various banks and financial institutions when we talk about loan or credit card application consideration. However, the decision of approval and rejection of loan is completely dependent on the bank or financial institution and CIBIL is just an agency to provide the score and it does not have any interference in deciding the same.
Benefits of Having a Good CIBIL Score
A CIBIL score of more than 750 is considered as good to get loans and credit cards. Mentioned below are some of the benefits of having a good CIBIL score:
- Easy Loan Approval: As mentioned above a high CIBIL score, generally more than 750 makes one eligible to apply for any type of loan and get it approved without any hassle.
- Discounted Interest Rate: One with high CIBIL score reaches a position to negotiate interest rate of the loans to the banks. In this case, the lenders consider one has a creditworthy client and sometimes even the lenders offer discounted interest rate.
- Get Loans with Long Tenure: With negotiation on loan interest rate, one also becomes eligible to negotiate on the tenure of the loan. Being a reliable client, banks can even offer a loan for a longer tenure. Sometimes a car loan for 7 years and a home loan for 25 years can be negotiated easily.
- Get Credit Cards with Better Rewards and Benefits: One with a good credit score is also eligible to negotiate on the credit limits of the card. He/she can ask for credit cards with better benefits and rewards as well as with higher limits.
Factors that Affect the CIBIL Score
Below mentioned are the factors that affect the CIBIL score:
- The Payment History: The payment history of an individual plays a major role in deciding his/her CIBIL score. Delaying loan EMIs and making late credit card payments leaves a negative impact on the credit score.
- Having Multiple Credit Cards and Loans: Taking multiple credit cards and having taken many loans at a time are not considered wise. This is because such activities also negatively affect the credit report.
- Relying More on Unsecured Credit: Even though the facility of personal loans and credit cards is there to provide financial strength to an individual, but having a larger percentage of these is again not recommended. Credit cards and personal loans are considered unsecured credit.
- Increasing the Current Credit Card Balance: Increasing the balance of credit card can negatively affect the credit score. This is because it increases the burden of repayment on the borrower.
Simple Methods to Improve CIBIL Score
If one checks CIBIL score online, then he/she can get to know about its current status. In addition to this checking CIBIL score also gives the opportunity to improve it by following the below-mentioned methods. However, the result will not be visible instantly but within some months one can expect improvement in his/her CIBIL or credit score:
- Check CIBIL score: Before building the CIBIL score, it is suggested to check CIBIL score online. An idea about the current status enables one to reach to his/her CIBIL score target easily.
- Try not to delay the repayments of cards and loan: If an individual has taken loan or credit against the card, then it is suggested to make repayments on time. Following the timeline of such repayments improves the CIBIL score.
- Always have a mixed bag of credit: Variety always removes monotony of life and so does happens with the credit. One should have a mixed bag of secure and unsecured credits. This leaves a positive impact on the CIBIL score as well.
- Avoid multiple credit cards and loans: Even though multiple credit cards and different types of loans give one an opportunity to have financial independence, but having multiple cards and many loans can drop down the CIBIL score. Therefore, it is recommended to have a limited number of credit cards and loans and manage them easily.
- Avoid increasing the credit card's limit: Try to stick to the allowed credit limit and do not exceed it. While the bank that issued the credit card may exceed the credit limit as per the client's request, but this can negatively impact the credit score. This is because the credit issuing authorities may think one non-reliable as he/she is not sticking to his/her allowed credit limit.
Question 1: I am a guarantor for someone. Will it affect my credit score?
Answer: Yes, if the person for whom you have become guarantor fails to repay the loan amount on time, then you also become liable for the same. This means you have to pay the loan on the borrower’s behalf with the strains of not paying the loan amount.
Question 2: I am sure that my credit report is not correct. What should I do?
Answer: If you have some dispute about your credit report issued by CIBIL, you should notify CIBIL about the same in writing. Once the CIBIL receives your notification, it contacts the creditors for confirming the issue. After that, it replies to you.
Question 3: I have notified CIBIL about the inaccuracies in my credit report. Will it rectify these issues?
Answer: No, the CIBIL does not make any modifications on the data that they have for an individual. What they do in such cases is they inform the creditor for getting the latest information. If the creditor gives the said information, then only the CIBIL updates its otherwise, it takes no action.
Question 4: What is the range of CIBIL score?
Answer: The range of CIBIL score is between 300 and 900, where 300 is the lowest and 900 is the highest.
Question 5: How often can I check CIBIL score online?
Answer: It is suggested to check the CIBIL score at least once in a calendar year to keep updated about the score.