The 2017 year brings a good news for me as well as for you.
Last year, former RBI Governor Raghuram Rajan announced, From 1 Jan 2017, CIBIL will provide one free CIBIL credit score & information report to everyone.
Now the time comes, check your CIBIL score online for free at any time during the year ( January to December) free of cost. Former everyone has to pay INR 550 for getting a one-time credit score. This is a direct saving of INR 550 per year. Cheers 😉
Jump to Section
- CIBIL Credit Score Meaning
- Factors Affect Your CIBIL Credit Score
- Why Check Your CIBIL Score
- What Is The Best Credit Score
- Improve Your CIBIL Credit Score
- Accounts Reflect In CIBIL Report (CIBIL Credit Report)
- What if You Never Had a Credit Card or Loan Before? Will You Have a Credit Score?
- How Do You Establish a Credit Score?
- Check CIBIL Score Online Free
CIBIL Credit Score Meaning
If you are new to term,
CIBIL (Credit Information Bureau of India Limited) is the Credit Information Company (CIC) which collects & maintain the records of individual’s payments towards loans & credit card.
On the basis of such information, Credit Information Report or CIBIL credit score is created. The score is shown in a three-digit number ranging between 300 to 900.
This credit score shows the creditworthiness of an individual. Banks & financial institutions check the credit score especially in case unsecured loans or credit card to evaluate the probability of whether the loan seeker repays his debt or not.
Due to this reason, CIBIL score is a very important term in personal finance.
Factors Affect Your CIBIL Credit Score
- Late payment of EMIs or credit card bills.
- If you default your credit card bills.
- Having multiple unsecured loans and credit cards.
- Overdue credit card limit.
- You are the guarantor of default loan.
- You have add-on credit card and primary cardholder not pay the bills.
Why Check Your CIBIL Score
In case, you visit banks and other financial institutions for a loan, first of all, they check your CIBIL credit score to know about your creditworthiness. In a case of low credit score, you will not get loan easily (may be loan request rejected). Low credit score indicates, inefficiency in repaying the debt.
To avoid such condition, this is better to check your CIBIL credit score at least once in a year. If you find something wrong or low credit score, then you can significant steps to improve this.
What Is The Best Credit Score
More the CIBIL score, more will be the chances of approval of your loan. Score more than 750 is considered as the best score. Also see, utilize what CIBIL report say about this.
Improve Your CIBIL Credit Score
You can take the following steps to improve your CIBIL Credit Score
- Pay your EMIs and credit card bills on time. Never make late payments.
- Avoid having a multiple loans and credit cards on a single name.
- Don’t utilize full limit on your credit card. 60% -70% utilization of specified limit is considered as good.
- Don’t even think about overdue balance on your credit cards.
- Make a gap of 1 year in between the two loans.
- Never be a guarantor because default in payment will automatically affect your credit score. It’s better to avoid this.
Accounts Reflect In CIBIL Report (CIBIL Credit Report)
- All Loan Accounts
- Credit Cards
- Settled and Unsettled Accounts
- Joint Loan Account
- All Closed Loan Accounts
- Accounts Where You Are As Guarantor
- Holding Add-on Card
Your saving account, FD, RD or other investments are not taken in CIR.
What if You Never Had a Credit Card or Loan Before? Will You Have a Credit Score?
When you have not borrowed any loan or never have a credit card, there will be no updates about you with the credit bureau. CIBIL marks such cases as NH (No History).
Due to lack of details, CIBIL will be unable to say anything on your payment behavior. In such cases, banks may not provide you unsecured loans or credit cards.
How Do You Establish a Credit Score?
Banks often check other factors such as your salary, income and employment stability, in the case of no credit history to determine your repayment capacity. These factors become the deciding factor about your creditworthiness.
The easiest way to build a credit score is, get a secured credit card. Banks availed secured credit card against the fixed deposit. Due to security, you will get an easy approval.
If you want to build your CIBIL Score through credit cards you can find your ideal card here 13 Best Credit Cards In India
Check CIBIL Score Online Free
Visit CIBIL.Com. In the center of the homepage, you can see a notification about Check Free Annual CIBIL Score. Just same as the image
Or Visit Directly Free CIBIL Report Page. The page Looks likes
In this page, at the end, you find Get Your Free Annual CIBIL Score & Report. Click here to go next
~ Next page ask you about your personal information. You have to fill information related to Your name, Date of birth, Gender, Identity Proof ( Pan Card), Income type, monthly income, Full address with pin code, Telephone number and Email address.
All the Fields are Mandatory, so you cannot skip anyone.
~ At the end of the same page, you see submit button. After filling all details click on submit button.
This is the process of registration with the CIBIL. Once you complete registration, you will receive an Email on your registered email Id. You will get a one-time password for login to check your CIBIL Credit Score.
Go to MyCIBIL Login Page . The same link you get by email ( shown above). You will reach the following login page.
Fill your registered email Id, password (receive in email) and captcha. After submitting, you may ask to change your password. First, change your password and again login with the new password.
Once you log in, then you will get the below home screen where you will notice your credit score as below. You can also check your credit history, as shown in the screenshot.
This is as simple as it seen the article. Just follow the upper mentioned instruction & check your CIBIL Score free.
Hope this article will be helpful for you. Let me know this in comments.