CIBIL Score

Credit Score: Why It Matters & How You Can Check Your CIBIL Score Online?

Once in a lifetime, one has undoubtedly come across the term “ Credit Score or CIBIL Score.’ Whenever we take any loan or apply for a credit card, the first and foremost thing taken into consideration is the credit score. A credit score typically denotes your ability to pay back the loan or credit card bill on time. But why does this even matter?

Well, there’s a sure-shot reason for everything, and so for the concern. In this technology-driven world, one can very easily check credit scores online. You can visit our official website and check your score very easily. Moving ahead, we’ll clear all your concerns and doubts related to your credit score in this article. So, buckle up and read this article till the end! 

What is a credit score?

If an individual’s entire financial life could be boiled down to one number, it would be the credit score. It is a three-digit number that summarises your borrowing and repayment patterns. Creditors will view you as a competent borrower if your score is higher.

The creditworthiness of a consumer is predicted by their credit score, which ranges from 300 to 900. The better a borrower seems to potential lenders, the higher their score.

A credit score is based on a person’s credit history, including the number of open accounts, the total amount of loans taken so far, the history of repayment, and other factors. Lenders use credit scores to determine the likelihood that a borrower would make timely loan repayments.

What is a credit score range, and what does it mean?

In India, a credit score might be anything from 300 to 900. We always make an effort to get your credit score toward 900. Your chances of receiving a decent deal on personal loans and credit cards increase with a higher credit score. You will understand better after referring to the data below: 

CIBIL Score Range

Meaning

NA/NH

This denotes that it is “not applicable” or that there is no history. You won’t have a credit history if you’ve never used a credit card or applied for a loan.

350-549

This range of CIBIL scores is regarded as a poor range of CIBIL scores. It indicates that you have missed payments on loan EMIs or credit card obligations. You will find it challenging to obtain a loan or credit card if your CIBIL score is at this level.

550-649

This range of CIBIL scores is regarded as fair. It implies that you have had trouble making on-time payments of the bills. The loan’s interest rate may potentially be greater.

650-749

You are on the right track if your CIBIL score is in this range. You should maintain your good credit habits to raise your rating even higher. Lenders will take your credit application into account and make you a loan offer. You still do not have the ability to negotiate for the best loan interest rate.

750-900

This CIBIL score is very impressive. It implies that you have a solid payment history and have made timely credit payments. Banks will provide you with loans and credit cards because they believe you have a low risk of defaulting.

Who is responsible for computing the credit score?

Whenever you make a transaction, the bank sends your information to all four credit bureaus if they are important to determining your credit score. The RBI has mandated that information needs to be sent to each and every credit agency. In essence, banks inform Credit Information Companies about your spending patterns. Any of the bureaus can be contacted by a bank if they need to check an online credit score. It makes no difference which one you choose because they will all receive the same grade from you because they are all equally credible and equal in value.

Credit bureaus begin gathering additional data about your financial habits from other banks and financial organizations after receiving information from the bank. After processing this data, the credit bureaus generate the Credit Report.

What factors can have a bad impact on my credit score?

It is well known that carrying high credit card debt can significantly lower your credit score. In addition to that, there are a number of other things that can lower your credit score:

What are the benefits of having a credit score?

You can obtain loans and credit cards more quickly and easily if you have a strong credit score. Now check yours and understand the benefits of having a good credit score: 

What is the best way to improve your credit score?

With various types and sources of credit scores, working toward good credit might feel overwhelming.  But if you take a step back and concentrate on the fundamentals, you may easily raise your credit score.

A borrower’s credit score varies when information on their credit report is updated, and it may increase or decrease depending on the new data. The following are some approaches for consumers to raise their credit scores:

How to check credit scores online?

Follow the steps below to check your credit score online:

Bottom Line

Without a doubt, your credit score is a digit that can cost or save you a lot of money in your lifetime. A good credit score can land you lower interest rates, which means you will pay less for any line of credit you take out. But it’s up to you, to make sure that your credit remains strong so you can have access to more opportunities to borrow if you need to.

FAQs

The PAN card is necessary to appropriately calculate the person’s credit score. The credit score can also be obtained by using other valid Proof of Identity (PoI) in place of the PAN card. The PoI helps in identifying individuals in the database.

No, the inquiry won’t have an impact on your credit score. Your credit score may be slightly impacted when you apply for a loan or credit card, but not when you check your credit score.

The ability to check your credit score is not restricted. You are free to check your credit score as much as time you wish. The credit score inquiry is regarded as a soft check because only hard checks have the power to lower your credit score.

The credit score is influenced by changes to the credit report; if and when these changes are made, the credit score will change based on whether they have a positive or negative effect. For instance, your credit record and score will be impacted, when you apply for a credit card or loan and make payments on the credit.

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