CIBIL score is a three-digit numeral assigned by the Credit Information Bureau India Limited (CIBIL) to individuals. It is a summary of a person’s credit history, report, and rating. This score is used by lending institutions to check whether a borrower is eligible for a loan or credit card. However, an individual needs to check this score periodically to retain a healthy CIBIL score and manage their finances properly. Individuals can opt for the CIBIL online check option on the official website of CIBIL to know their credit score.
What are the steps to check the CIBIL score online?
Checking credit scores from time to time helps an individual mend his/her financial behaviour and retain a healthy credit history. Mentioned below is the step-by-step process to check the CIBIL score:
Step 1: First, borrowers should visit the official website of CIBIL.
Step 2: After this, they have to click on the ‘Get your CIBIL Score’ option in the portal.
Step 3: Then, they have to input their name, email ID, PIN code, mobile number, and date of birth.
Step 4: Once borrowers are done with the above step, they have to click on the ‘Accept and Continue’ option.
Step 5: After completing the above step, they will receive an OTP on their registered mobile number which they have to enter and click on ‘Continue’.
Step 6: On clicking ‘Continue’, borrowers will be redirected to the ‘Member Login’ page where they can use their user ID and password to check the CIBIL score.
People should not only know how to check CIBIL scores but also understand the ideal score range necessary to avail credit facilities.
What is the range of CIBIL score for availing a credit?
Individuals opting for loans or credit cards need to know the range of CIBIL scores before applying for one. Below are the ranges of CIBIL scores, categorised from what is considered healthy to poor:
- 300 to 499: Poor
- 500 to 649: Fair
- 650 to 749: Good
- 750 to 900: Outstanding
Even though the minimum CIBIL score required for a loan or a credit card varies from one lending institution to another, it is sensible to retain a good credit score. In general, the range of a good credit score lies between 650 and 700. A CIBIL score of over 750 is considered ideal to get quick approvals on loans whereas a score less than 600 may cause the rejection of the loan application.
What are the advantages of retaining a good credit score?
Borrowers having a CIBIL score of 800 or above can enjoy the following benefits while applying for loans or credit cards:
- Better loan terms: Borrowers retaining high CIBIL scores get reasonable interest rates and better loan terms from the lenders.
- Increases creditworthiness: A higher CIBIL score actually reflects the creditworthiness of the borrowers in the eyes of lenders.
- High credit limits: If an individual has a good CIBIL score and a well-maintained credit history, they can get high credit limits on loans, credit cards, or line of credit.
- Quick approvals: High CIBIL scores of 750 or above can accelerate the process of loan approval, helping borrowers avail funds instantly when needed.
- Personal financial management: Healthy credit scores and accurate credit histories reflect proper financial management. This in turn encourages increased financial discipline.
There are many popular financial institutions that provide pre-approved offers on secured credit facilities like home loans, property loans, etc. This helps in advancing the overall lending process in the market. Eligible customers can check their pre-approved offers online by entering their names and contact numbers.
Checking the CIBIL score online is a soft inquiry. Hence, it does not hamper the credit score of an individual. Borrowers have the complete freedom to check their CIBIL score multiple times. In fact, it is a great idea to evaluate credit scores on a daily basis since it helps in detecting errors within the CIBIL report and also improves the CIBIL score. People can opt for the CIBIL online check option to evaluate their credit score for free.