The terms “Credit Score” and “CIBIL Score” must be used regularly in conversation. These idioms are now often used in speech. But it’s crucial to comprehend what these expressions mean. Particularly if you intend to seek a bank for a loan to get financial support, your credit score may influence the entire application and approval procedure.
A credit score: what is it?
A credit score is a numerical expression used to quantify a person’s creditworthiness. It is based on a level analysis of their credit files.
Your creditworthiness is ultimately determined by your credit score. Your ability to repay the borrowed funds is demonstrated to lenders or other financial organizations by this rating. Typically, a three-digit CIBIL Score ranges from 300 to 900.
The terms “credit scores” and “CIBIL scores” are frequently used synonymously. One of the most reputable providers of credit information in the country is CIBIL, also referred to as TransUnion CIBIL Limited. Millions of people’s credit histories and information are gathered by this company. The CIBIL Score is frequently referred to as the “Credit Score” in India because of its excellent reputation.
Credit evaluation is not just used by banks. The same strategies are used by other businesses like mobile phone providers, insurers, landlords, and government agencies. Alternative data sources are being used by digital finance organizations, such as online lenders, to determine a borrower’s creditworthiness.
Why is having a good credit score important?
A lender uses your credit score to determine if you’d be a good candidate for loans, credit cards, etc. Whether you want to get a personal loan, pay for urgent medical expenditures, plan a family event, or help your loved ones, your credit score will be crucial. If your credit score is low, it’s conceivable that your loan application won’t be granted. It is essential that you check your credit score before applying as a result. A personal loan from HDFC Bank is available to you with a low-interest rate and several benefits. You can repay the loan in several ways using straightforward EMIs as well.
What factors might affect your credit score?
One of the many factors used to determine your credit score is your payment history. Your credit score may also be affected by the following factors:
Your credit score may be affected if you utilize your credit limit excessively—more than 30% of the time. Your credit score may be lowered by a history of irresponsible payments, such as failing to pay credit card bills on time and failing to pay loan EMIs. If you have delinquent debt and only make the minimum credit card payment due, your credit score will suffer. Finally, the length of your credit history determines how your credit score is seen. Check your credit score for free.
How can I check my CIBIL score for free online?
How to check your online CIBIL score:
- The first step is to go to the official Bajaj Finserv website.
- In step two, select “Get your CIBIL Score.”
- Step 3: Key in your name, email address, and password.
- Step 4 is to click the “Accept and continue” button.
- Step 5: Your cell phone will receive an OTP.
- Step 6 is to enter the OTP and choose “Continue.”
- Step 7: Click “Go to dashboard” to access the credit score checker.
- Step 8: There will be a redirect to the website myscore.cibil.com.
- Check your CIBIL Score.
- Step 9: To view your CIBIL score after logging in, select “Member Login.”
Online payment and CIBIL score checking: You can check your CIBIL credit scores online by following the instructions below.
1. After logging into the official Bajaj Finserv website, click Know Your Score.
2. Complete the online form, which asks for information such as your name, age, address, means of identification, past loans, and other relevant data.
3. Following the completion of the form and your acceptance of any modifications, you will be taken to the payments page. There are numerous ways to pay, such as prepaid cards, credit cards, net banking, etc. To get your credit report, you must pay CIBIL Rs. 550. After making the payment successfully, you will be taken to an authentication screen.
Hope you found this article helpful and would like to follow these instructions from next time onwards.