If you want to check free credit score, there are many online platforms from where you can get a free credit score. However, if you want to get a free credit report from CIBIL’s website, you can do so anytime only once a year. Below is the information about how to do a credit score check free online.
A Credit Score Checker is an online tool or service, often provided by credit bureaus or third-party websites, that allows individuals to view their credit score. The checker requires certain personal and financial details to fetch the score. Some platforms also provide insights into the factors influencing your score.
Navigating the financial realm today demands a keen awareness of one's credit score. With banks and lending institutions often utilizing this score as a barometer for creditworthiness, the ability to check free credit score has become essential for everyone. This guide offers a comprehensive insight into understanding, accessing, and optimizing your credit score without any cost.
A credit score is a 3-digit number that shows how well you have managed credit in the past, like a personal loan, home loan or credit card. It is a measuring tool to know your ability to borrow funds from any lender. CIBIL Score Calculation is based on your past credit history and behaviour.
In simple words, your credit score tells lenders whether you are a reliable or a risky borrower and how likely you are going to repay a new loan responsibly. While applying for any kind of credit, such as a loan or a credit card, the lending bank or Non-Banking Financial Company (NBFC) checks your credit score and the history maintained in your credit report.
The credit score is calculated out of 900, and the higher your score, the more your chances are of getting approval for a new credit. Usually, a CIBIL score of 750 or above is considered is preferred by lenders for any kind of unsecured loan or credit card. For secured funding, the criteria could be a little relaxed.
If you tend to miss paying your loan Equated Monthly Instalments (EMIs) often or timely credit card bill payments, your credit score is likely to be impacted negatively. Being disciplined with the EMIs and credit card bills payment and not displaying any credit-hungry behaviour by applying for credit frequently will help in improving your credit score.
Credit Information Bureau (India) Limited (CIBIL) is a credit bureau of India that maintains and calculates the credit score of individuals. It is the oldest bureau for maintaining the credit record of people. Apart from CIBIL, there are three other credit rating agencies in India that provide credit reports viz. Experian, CRIF High Mark and Equifax.
Be it Experian credit score, Equifax credit score or CRIF Highmark credit score, a credit score is calculated independently by each credit bureau based on your credit information provided to them by banks and Non-Banking Financial Companies (NBFCs) on a regular basis.
Also Read : CIBIL Full Form
If you want to check free credit score from CIBIL, according to CIBIL’s credit policy you can access 1 free credit report in a year. Follow the steps mentioned below to get free credit score for free from CIBIL’s website:
Below are 4 leading credit bureaus in India:
CIBIL is a complete credit bureau that provides credit analysis for individuals as well as organisations. The CIBIL Score Range from 300 to 850, with 720 or above being an excellent score. TransUnion CIBIL members include all major financial institutions, lenders, banks, and NBFCs. The bureau provides one free credit report each year.
Equifax gives portfolio scores as well as risk scores, with credit scores usually ranging from 1 to 999 for individuals. Since 2010, it has been working as an approved credit rating agency. Equifax provides different reports such as industry diagnosis, portfolio management, credit fraud, or risk management report for companies.
Experian was established in the year 2010. It conducts an analysis of the credit reports of companies as well as individuals. Their credit score ranges from 300 to 900. You can get your report in just 20 days.
Approved by the Reserve Bank of India (RBI), CRIF High Mark conducts analysis for the credit rating of corporates as well as individuals. Their credit rating ranges from 300 to 850.
Each bureau might have a slightly different scoring model, but the core components remain similar.
|Factors||TransUnion CIBIL||Experian||CRIF Highmark||Equifax|
|Year of Establishment||2000||2006||2007||2010|
|Primary Services||Credit scores||Credit scores||Credit scores||Credit scores|
|Free Annual Report||Yes||Yes||Yes||Yes|
Also Read : CIBIL Dispute
While the exact formula used by credit bureaus is proprietary, the following components usually influence the calculation:
To calculate Credit score for free:
The definition of 'good' or 'bad' can vary slightly across credit bureaus, but generally:
While a lower score isn’t the end of the road, it does make financial processes more challenging. On the other hand, maintaining a higher score paves the way for financial flexibility and advantages.
Your credit score is like a financial passport. The better it looks, the smoother your financial journey. Regularly checking and understanding it, especially through free means, can be a game-changer, ensuring that you remain on top of your financial game. It's more than just a number; it's a reflection of your financial discipline.
Know how good your score is
Get insights on how to improve it
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Below are some tips to keep your finances and credit score in good shape:
Below are the tips you can follow to improve your credit score:
Most banks and NBFCs consider a minimum credit score of 750 or above to approve a personal loan application. A higher CIBIL score makes you a less risky borrower for lenders as they think you will less likely to turn into a defaulter. A high credit score can help you get a higher loan amount at better interest rates and affordable tenure.
Read More: Credit Score for Personal Loan
For home loan approvals, most lenders require borrowers to have a credit score of a minimum 650. A score between 650 and 749 is considered good for housing loans as these are secured loans. Scores below 649 are considered average and need to be worked on.
Read More: Credit Score for Home Loan
The credit score requirement for obtaining credit cards may be different for each credit card issuer. However, a credit score of 750 or above is usually considered good for getting approved for a credit card.
Read More: Credit Score for Credit Card
It is not necessary but important to check your credit before applying for a loan. That is because it prepares you to get better rates and terms on loans. You can check free credit score once a year.
You can opt for a credit score check free online once a year and if your score is low, follow the tips mentioned below to improve and maintain your CIBIL score:
To check free credit score, you just need to provide the following basic details to create your account:
There could be a number of reasons like:
The minimum CIBIL score requirement may vary from loan to loan and lender to lender. Most banks and NBFCs consider a minimum credit score of 750 or above to approve a personal loan application. For home loan approvals, most lenders require borrowers to have a credit score of minimum 650. The credit score requirement for obtaining credit cards may be different for each credit card issuer. However, a credit score of 750 or above is usually considered good for getting approved for a credit card.
It means that the credit rating agency was unable to find your credit report based on the details submitted by you.