CIBIL, also known as the Credit Information Bureau, India is a premier body for the provision of credit reports and scores that pertain to certain individuals. CIBIL sources financial information of individuals including the credit card and loan information from the top banks and other financial institutions in India. This data is collectively presented in the form of a CIBIL credit report, also known as the CIR (Credit Information Report). Before we directly jump on how to do a CIBIL Score Check Online, let us understand what exactly is a CIBIL score?
What is a CIBIL Score?
The Credit Information Bureau (India) is also famously known as CIBIL and is an agency authorized by the Reserve Bank of India. It offers both CIBIL scores and CIBIL reports. A CIBIL score is a three-digit number, ranging between 300 to 900, wherein, 300 is the lowest and represents the creditworthiness of an individual. On the other hand, a high CIBIL score as calculated with the help of CIBIL score check online indicates a good credit history and a responsible behavior of repayment. CIBIL scores are calculated based on a minimum of 6 months of historical financial data. This data is then fed into an algorithm with 258 varying individuals, each one having a differing weightage.
Significance of a Good CIBIL Score for Loans
It is simple to conduct a CIBIL score check online. A good CIBIL score is the one that lies between the range of 700 to 900. This will also be considered by NBFCs and banks at the time of considering an application for loan for a majority of retail loans, whether it is a vehicle loan or a home loan. However, while a higher CIBIL score is influenced by your use of credit, your investments do not play any role in the calculation. So whether you have invested in real estate, gold, mutual funds or pension schemes in India has no bearing what so ever on how high or low your current credit score is.
A high CIBIL score is also called a credit score and has several benefits, especially during the application process:
- Faster loan application process
- A hassle-free loan documentation process
- Lower interest rate on loan
- A higher loan quantum
- More flexible and longer repayment tenure
Choose from multiple lenders to select a loan which is best suited for you. In addition to this, a CIBIL score will lead to an easier and quicker documentation process. When it comes to home loans, you can expect up to 80 per cent of the cost in total if you have a CIBIL score between the range of 700 and 900.
How Does CIBIL Score Check Online Work?
Here are the steps to easily conduct a CIBIL score check online:
- Step 1: Visit the official website for CIBIL
- Step 2: Select the option Get CIBIL score
- Step 3: Enter your personal details such as your name, E-mail address and password
- Step 4: Attach an ID proof and enter your contact number, DOB and PIN code
- Step 5: Choose the option ‘accept and continue’
- Step 6: You will receive an OTP on the registered mobile number. Enter the OTP and continue
- Step 7: Select ‘Go to dashboard’ and look at your credit score
- Step 8: You will then be redirected to the official website
- Step 9: Choose the member log in option and see your CIBIL score
Points to Keep in Mind About Your CIBIL Score
Your account balance and investment schemes: CIBIL score gets affected by the availed loan. However, it is completely dependent on your investment plans and savings. The CIR only comprises of details related to loans and the balance in the credit card. It has nothing to do with the number of policies that you have purchased and the FDs you have. So, in case you are thinking that taking many polices will impact your CIBIL score, it is time for a change of concepts.
Bounced payment cheques: Most people have an understanding that a stop payment or bounced cheque has a negative effect on the CIBIL score. However, this statement does not hold true. Bounced cheques do not form a part of the credit report and therefore have nearly no impact on the CIBIL score, unless the cheque is not related to loan repayment or installment.
More savings account or accounts that are not operative: All individuals have a minimum of 2 bank accounts for convenience purposes. At times, this number exceeds too. If you have a bank account that is inoperative, with a negative balance, then it has no effect on the CIBIL score in any possible way. It is important to know that CIBIL does not maintain a track of the number of negative balances and the operating savings account. So, it plays no role in deciding the CIBIL score as well.
A CIBIL score is generated by the bureau post the consideration of an individual’s detailed credit information. A good CIBIL score not only secures your present but also secures a worriless retirement by aiding investment in the best pension schemes in India. It is however, of utmost importance to be aware of the factors that affect the CIBIL score and the ones that don’t for right measures to fall in place, helping you improve your CIBIL score for a financially secured future.