Ajay is an accountant and has been working for six years now. Every day, he books a cab to drop his wife at work and the child to school. Sometimes, Ajay reaches late to work due to excess traffic. To avoid this daily hassle, he plans to get a car loan. However, Ajay already has a house loan in his name, on which he has defaulted in timely payments a couple of times. He has made several inquiries for loans with multiple lenders. However, most of the banks are rejecting his application.
A friend advised Ajay to do his CIBIL score check. It will help him ascertain his credit score based on which the banks are rejecting his application.
What is a credit score?
The Credit Information Bureau (India) Ltd, known as CIBIL, is a part of TransUnion. It is one of the premier agencies approved by the Reserve Bank of India (RBI) for credit ratings. CIBIL generates credit scores and credit reports of individuals and businesses based on the financial data provided by the banks and non-banking finance companies. It generates a CIBIL credit report, also known as Credit Information Report (CIR), and the 3-digit CIBIL score.
The credit score is based on an individual’s loan or credit card repayment history. It ranges from 300 to 900, 900 being the highest. Banks and the non-banking finance company do a credit score check before extending any loan to the applicant as it indicates the creditworthiness of the potential borrower. While a good CIBIL score ensures easy availability of loans, a low CIBIL score can make it difficult to get a loan when required.
The credit score keeps on fluctuating. A low credit score can be improved over a period of time by timely repayment of EMIs and credit card bills.
How to check your credit score online
Your credit score can easily be checked online.
- Log on to the official The Credit Information Bureau (India) (CIBIL) website https://www.cibil.com/.
- Click on Get Your CIBIL Report & Score.
- The page prompts you to select the option for accessing your CIBIL Dashboard – for 1 month, 6 months or 12 months. A nominal charge is associated with the option you select.
- Thereafter, you are directed to fill a form for registration with CIBIL. The form requires personal details, such as name, date of birth, address, ID proof, past loan history and such other relevant details.
- On filling the form and accepting any of the changes, you are directed to the payment page. You can choose from the multiple modes of payments like prepaid cards, credit cards, net banking, debit cards, etc.
- Next is the authentication page. Here, you will be asked 5 questions. They are questions in connection with your credit history. If you answer at least 3 questions correctly, your CIBIL account is authenticated.
- After authentication, the reports will be sent to your email address within the next 24 hours.
The credit report includes the credit score and other details related to your financial transactions. The credit score is just a part of the report, while the report will include a history of payments, number of loans, outstanding balances of any loans, total credit limit and loan details taken from lenders.
Checking the credit score online is a simple and user-friendly procedure. It helps people like Ajay to identify the reasons for rejection of their loan applications. Besides, if you know that your credit score is not good, you may first work towards increasing your score and then make a loan application.