The TransUnion CIBIL (Credit Information Bureau India Limited) assigns a three-digit number to individuals, known as the CIBIL score. This number summarises an individual’s credit history, report, and rating. Lending institutions use this score to determine a borrower’s eligibility for a loan or credit card. The CIBIL online check option on the official website allows individuals to easily find out their credit score.
How to check online CIBIL scores?
Checking your credit score regularly helps you improve cibil score and your financial habits and maintain a good credit history. Here is a simple guide on how to perform a CIBIL online check:
Step 1: Visit the official CIBIL website.
Step 2: Click on the ‘Get your CIBIL Score’ option.
Step 3: Provide your name, email, PIN code, mobile number, and date of birth.
Step 4: Click ‘Accept and Continue’.
Step 5: You will receive an OTP on your registered mobile number; enter it and click ‘Continue’.
Step 6: You will be directed to the ‘Member Login’ page; use your user ID and password to check your CIBIL score.
What are the different important sections in a free CIBIL report?
A free CIBIL report will comprise four key sections:
- Credit summary
This section provides details on the types of credit accounts that an individual currently possesses. It categorises accounts into segments like credit cards, car loans, home loans, and collections.
- Account history
This part encompasses all details related to an individual’s credit accounts. This includes the lender’s name, borrowed amount, account number, account opening date, most recent payment date, current balance, and a monthly repayment record of up to three years.
- Profile information
This section outlines significant financial issues, both current and previous, such as bankruptcies or legal troubles. Individuals are advised to carefully review this section, identify the causes of these problems, and take steps to avoid similar issues in the future.
- Credit inquiries
In this segment, individuals will find a list of occasions where third parties accessed their credit reports within the past two years. Each time a lender checks the credit report, it counts as an inquiry. While individuals can view all credit inquiries in their free CIBIL report, it is important to note that lenders or financial institutions may only have access to a limited subset.
What are the ways to improve CIBIL scores?
Improving a CIBIL score involves several steps. Here is what individuals can do:
- Make timely payments: Always pay credit card bills, EMIs, or any loans on time. Missing or delaying payments can significantly impact one’s credit score. Reminders can help individuals stay disciplined in repayment.
- Keep old credit cards: Maintaining old credit cards is beneficial. It contributes to a longer credit history, enhancing a person’s creditworthiness and his/her CIBIL score.
- Be mindful of loan applications: Applying for multiple loans simultaneously can negatively affect one’s CIBIL score. It is advisable to have a well-thought-out financial plan.
- Settle outstanding payments: Clearing current outstanding credits contributes to a good CIBIL score. Avoiding defaulted accounts is crucial to maintaining a positive credit history.
- Diversify credit types: Having various types of credit, such as credit cards, personal loans, and lines of credit, positively influences the CIBIL score. It showcases the ability to manage different credits concurrently.
- Control credit inquiries: Apply for credit only when necessary, minimising inquiries for new credit. Excessive inquiries can reduce one’s CIBIL score.
To track progress, individuals are encouraged to use the CIBIL online check feature available on TransUnion CIBIL’s official website. Through regular monitoring of one’s credit score, one can ensure to maintain high Cibil score and easily get approval for credit facilities like credit cards or a home loan.
Lending institutions extend pre-approved loan offers to existing borrowers with elevated credit scores for loans such as home loans and loans against property. These offers make the loan application process easier and quicker. Borrowers can review their eligibility for pre-approved offers on a lender’s website by inputting details such as their names and email IDs.
In conclusion, using the CIBIL online check option provides borrowers with a convenient and risk-free way to monitor their credit scores regularly. This inquiry does not harm the credit score, granting individuals the freedom to assess their financial standing without any adverse effects. Regular evaluations not only aid in error detection within the CIBIL report but also contribute to the continuous improvement of one’s credit score.
