The borrower’s CIBIL score is looked into while seeking loans from banks or any other financial institution. The score ranges from 300 to 900. The higher the score, the better it is. Generally, a score above 750 is considered good where the chances of loan approval become higher.
What is CIBIL Score?
CIBIL Score is a three-digit number, which ranges between 300 and 900. The higher the score, the better it is. Generally, a score above 750 is considered good where the chances of loan approval become higher. The report containing this score is called CIBIL Report.
The CIBIL report allows the bank to have a look at a person’s credit history, including whether the person has ever defaulted on any of his/ her previous debts. It also shows how many loans has the person taken so far, including the amount and the duration of the previous credits. It helps banks mitigate risks of defaults and hence reduces losses.
Importance of CIBIL Score
If you go to take a loan or apply for a credit card, the bank checks your CIBIL score to ensure your creditworthiness and risk profile. The CIBIL report allows the bank to have a look at your credit history, including whether the person has been punctual in repaying his/ her previous debt. It also shows how many loans has the person taken so far, including the amount and the duration of the previous credits. It includes both credit cards and loans. It helps banks mitigate risks of defaults and hence reduces losses.
The bank approves a loan only if your CIBIL score is good. So, maintaining a good score is very important. The score also saves individuals from any paper hassles to prove the records of the previous credits. Banks also offers cheaper loans to those having good CIBIL score.
How To Check CIBIL Score Online?
CIBIL provides one report without any charge once a year. That can be checked online. Following are the steps through which you can check the CIBIL score:
1) Go to the official CIBIL website https://www.cibil.com/
2) Select ‘Get your CIBIL Score’
3) Click on ‘Click here’ to get your free annual CIBIL score
4) Type in your name, e-mail ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar or Voter ID). Then enter your PIN code, date of birth, and also your phone number
5) Click on ‘accept and continue’
6) You will get a one-time password (OTP) on your registered mobile number. Type in the OTP and select ‘Continue’
7) Select ‘go to dashboard’ and check your credit score
8) You will be redirected to the website, myscore.cibil.com
9) Click on ‘member login’ and once you log in, you can see your CIBIL score.
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