CIBIL score is a standard credit rating assessment criterion in India. From your Home Loan to Personal Loan, to Credit Cards and business credit line needs, all credit requirements are primarily dependent on your credit score.
It is thus vital to review your credit score regularly. Keeping an eye on your Credit Information Report (CIR) helps you maintain a healthy score and stay credit ready. Herein you must also know that every time a third party checks out your credit report, the transaction is reported on your CIR. Thus, every credit check by a bank or an NBFC is called as a Hard Check. Too many hard checks can vastly hurt your score.
However, when you pull out your report from the CIBIL, it is considered as a soft check and is not noted in your credit report. A soft check doesn’t affect your score. Hence it is worthwhile to check your score yourself and search for the loans online yourself.
While earlier credit report was available only after paying a nominal fee of around Rs 550, you can now check your CIBIL report free. To get access to your CIBIL Report for free, all you need to do is make a request online on the official CIBIL website and share your details such as Name, Date of Birth, PAN Card, Aadhar Card, etc.
The process of checking a credit report online is safe and reliable. Here are the steps involved:
Create a unique ID and password to form a CIBIL Account online. You require your name, email ID, and phone number to create an online CIBIL Account. Every time in future when you want to check your credit report and credit score, you can access the information using the username and password.
Next share your personal details such as Date of Birth, Gender, Postal Address, Proof of Identity, i.e., PAN and Aadhaar Card Number. The personal identification is involved to protect the privacy of the individual.
This is the third step and designed as a back-up to check authentication of the request. An OTP is sent to your email or phone number to check the identity. In some cases, questions are asked regarding PAN Card and Credit Accounts so as to ensure foolproof verification of the individual/ entity.
After you clear the verification steps, you are sent the soft copy on the email. You can access the physical report too.
A PAN is a unique identification code extended to individuals and entities paying income tax. It is an alphanumeric 10 digit code number which also acts a legal proof of identification for the account holder.
A large number of financial transactions such as opening a bank account, or purchasing high value assets require disclosure of a PAN Card number. This universal identification via PAN Card is designed to authenticate the transaction and protect tax evasion.
Your credit report is your financial information document. It contains your personal details and credit account details. Here is a quick overview of what all to expect in your report.
Your report includes your personal details like your name, date of birth, gender and identification numbers. The identification number could be PAN Number, passport number, voter’s number or Aadhaar number.
Always monitor the information provided. Many times, a manual or computer error can mix your personal information with any other individual and hurt your credit rating assessment. It is thus important to carefully tally the information when you review your report for the first time.
This section contains your contact details including your address and telephone number. You can add up to 4 address in this section. This is the address that CIBIL will use to contact you. It is important to keep this section updated every time you change your contact details. Updated contact details help you to safeguard against identity theft traps of online hackers as any notification would not go overlooked by you.
This section shares your monthly/ annual income. The information is derived from the report submitted by your salary account bank.
Your Account Information includes the details of credit facilities used by you. It clearly lists the name of banks and financial institutions you have credit accounts with; type of credit product such home loan, Personal Loan, etc running; loan account numbers; loan amount; date of opening for loan accounts; last payment date; current balance and a record of payments for last 3 years.
This section lists all hard “Enquiries” raised by you. Carefully read this section and make sure there is no unidentified information on this section.
CIBIL Score is the credit rating received by you from Credit Bureau. The CIBIL calculates credit score in a range of 300 to 900 points. Here, 900 is the perfect credit score; while 300 is the lowest score. The credit score anywhere above 700 is considered a good score. The better is your score; the better are your chances for availing a low-interest rate loan.
Also Check: Company cibil score?
Your CIBIL score indicates that the credit bureau has received your credit history details in the last six months. All lenders consider CIBIL score as a benchmark to assess the risk profile of the applicant. Based on your past credit history and score, the lender calculates your likelihood for repaying the future loans.
It is thus important to maintain a good Credit score and review your report regularly at least twice a year.
Also Read: Know All Ins and Outs of a Good Credit Score
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