How To Get Free CIBIL Score


How to Get Free CIBIL Score

Credit Score

The CIBIL score is a three-digit numeric series. It is borne from the financial records maintained by financial banking institution that shows in your credit report. The score for credit ranges between 300 and 900. A score of 750+ is considered ample for getting credit line from banking institutes.

How Should I Check My Free CIBIL Score?

1. Yes. Your score will tell you everything that you need to know about all of your credit due on a single portal. All of your due balance in your credit accounts, loans etc. can be assessed in one document. Using your credit report, you get to know the outstanding debts. One does not have to check various bills and bank statements to understand your finances.

2. When you are aware of your credit score, you may apply for finest credit deals that you can avail. The score helps the lenders to come to a final take on lending. You can ensure that you apply for the best possible deal according to your capability together with credit facilities that match your credit score.

3. In a situation where your credit history is bad, you may improve on it by understanding the reasons for a bad credit score. This can be nicely understood once you have checked your credit report. You may improve upon your credit score by improving your financial decisions and credit availing.

4. Your credit history comprises of the list of the many lenders whom you owe money. The report is a record of the many applications you made towards various lenders. This way you will also not end up applying to the same lender again who has previously rejected your application.

5. When there are discrepancies in your free CIBIL score report, you may contact the lender in question and get it corrected as soon as possible. There is nothing wrong in monitoring your credit score, since it does not negatively affect your score.

6. You may save yourself from fraud when you check your CIBIL Score frequently. When there is suspicious credit application or activity on your credit score, you can easily report it to the authorities in question and it can be solved as per protocol.

What is the range of CIBIL Score and its importance?

The CIBIL score varies between 300 and 900

0 /-1

A. This means you do not have any credit history through credit cards or any loan EMIs.
B. To initiate a CIBIL score, you will have to begin with a credit card transaction or by taking a loan, and by repaying the EMIs on time.

350 to 550

A. If you secure a score in this range, the CIBIL score will be counted as bad, which means you may have defaulted in repayments or payments, and will not get fresh credit lines at all.

550 to 650

A. If your score is between 550 and 600, then your score is fair, yet not good.
B. Try making regular payments and you have the potential to increase the CIBIL score and gain back the trust of lenders and credit card companies.
C. Your loan request may not be necessarily rejected, but approval chances are low.

650 to 750

A. With a CIBIL score in this range, you can be considered as eligible for credit card and loan approval.
B. Continue making payments and repayments on time to keep up the score and better the same.

750 to 900

A. If you have a score of 750-900, it means you have been following sound financial practise and regularly paying off credit card bills and loan EMIs.
B. Any bank, NBFC, lender and financial institute will be more than willing to offer you credit card and loan.

Why Credit Score Falls?

A. By monitoring your CIBIL Score from time to time or signing up for credit score alerts, you come to know the fluctuation of your credit score over a period of time.

B. Below provided are a few possible reasons that could lower your credit score.

  1. Your Payment is Delayed by More Than 30 Days
    Your history of payments is significant for your credit score. This means that instalments of loan or credit card that fall due for more than a month have to be inevitably reported to credit information bureaus only to be reflected in your credit report. This will lead to your credit score falling.

2. An Expensive Purchase

An expensive purchase on your credit card will have effect on your credit score and worthiness in a negative way. This is a factor thought of as very important by the credit information bureaus on calculating the segment of your credit limit being utilised at a specified time. This is owing to the fact that credit card companies report balance to the credit bureaus at the end of the billing cycle. In this situation one may pay balance to the card issuer and avoid further transactions on this credit mode.

3. Your Unpaid Account is Sent to Collection

In a situation where you pay the credit cards instalments and loan EMIs in time, but skip payment in other accounts such as telephone bill, it gets recorded as default. In certain cases, the institution pays the agency of collection. This will hamper your credit score.

4. You Made a New Credit Application

Every time you apply for a fresh line of credit, the data from your enquiry is sent to the credit information agencies such as CIBIL. This way it gets recorded and you see it in your free CIBIL score. Considering that inquiries are only 10% of your credit score, the change is reflected on the credit score whenever a fresh loan is applied for.

5. Decrease in Your Credit Limit

In a situation where credit limit has been brought down, the segment of credit facility utilised is increased. This will have a negative impact on the score.

6. You Closed a Credit Card or it was Cancelled

Pre-closing your credit card is not healthy for your credit score. This is most true for situations when your card has balance. At times, the issuer of the card cancels your service. This makes for a negative point on the report when you check your free CIBIL score.



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