Knowing your CIBIL score and monitoring it regularly is essential to manage your financial well-being. When you apply for a loan, your credit score is assessed to determine your eligibility and creditworthiness.
This guide walks you through the steps to check your CIBIL score for free on our website. It also explores the factors that impact your CIBIL score, the benefits of having a high credit score, and actionable tips to improve it.
What is a CIBIL Score?
A CIBIL score, assigned by TransUnion CIBIL, is a numerical representation of your creditworthiness. TransUnion CIBIL is a recognised credit information bureau that provides credit data and insights to individuals and financial institutions to help them make informed financial decisions.
A credit score is a three-digit number calculated based on your repayment history, credit utilisation, and credit mix. It ranges between 300 and 900, with a higher score indicating better repayment capacity and creditworthiness. A good credit score can increase your chances of loan approval at a favourable interest rate.
How Does a CIBIL Score Work?
The CIBIL score works as a summary of your credit report. When you apply for a loan or credit card, this score is assessed to evaluate your repayment capacity. Your CIBIL score and report reflect your financial history and ability to manage credit responsibly. Among other factors, your credit score plays a key role in determining the interest rate and loan amount you can secure.
A good CIBIL score, typically above 750, demonstrates high creditworthiness and can increase your chances of approval. It also makes you eligible for better borrowing terms and a competitive interest rate.
How is Your CIBIL Score Calculated?
Credit bureaus have their own scoring models to calculate credit scores. TransUnion CIBIL, for instance, calculates CIBIL scores based on four primary factors. Each factor has a specific weightage, as given below:
- Payment History (40%) – This is one of the key factors that influences your credit score. Paying your EMIs or credit card payments on time can positively impact your score, while delayed or missed EMIs may lower it.
- Credit Utilisation (20%) – Your credit utilisation ratio is the measure of how much credit you are using from the available limit. A high credit utilisation ratio may suggest over-dependence on credit and reduce your score.
- Credit Type and duration (21%) – A balanced credit portfolio with both secured and unsecured loans can improve your CIBIL score. Having a longer credit history also contributes positively.
- Other Factors (19%) – This includes the number of loan or credit applications you have made and the number of enquiries. Each time you apply for a new credit, your lender conducts a detailed credit check, known as a hard enquiry. Multiple hard enquiries can reduce your credit score, especially if done simultaneously in a short span.
How to Check Your CIBIL Score for Free?
Follow the steps given below to check your CIBIL score instantly:
- Click on our CIBIL score journey.
- Enter your personal details, such as your name, mobile number, and date of birth.
- Then, proceed to enter your PIN code, PAN, and email ID.
- Click on ‘Generate OTP’ and enter it.
Once you enter the OTP, you will be able to view your credit score instantly. You can also click on ‘Download Now’ to download your detailed credit report.
Benefits of Having a High CIBIL Score
A CIBIL score of 750 or higher can offer:
- Competitive Interest Rates: If you have a good credit score, you can benefit from a favourable interest rate on a loan, thereby reducing your cost of borrowing.
- Favourable Loan Terms: If you have a good CIBIL score, you can avail of better loan terms, including a flexible repayment option and a competitive interest rate.
Tips to Maintain a Good CIBIL Score
Here are some effective tips to improve your credit score:
- Pay EMIs on Time: Timely EMI payments and credit card bills can help you maintain a good CIBIL score.
- Avoid Frequent Loan Applications: Avoid applying for multiple loan applications simultaneously, as it may negatively impact your credit score.
- Manage Your Credit Utilisation: Keep your credit usage below 30% of the available credit.
- Monitor Your Credit Report: Check your CIBIL report regularly to identify and rectify errors.
It is essential to check your CIBIL score regularly to maintain a healthy financial portfolio. Use our CIBIL score journey to view your credit score and report for free. Regular monitoring helps you identify any issues and take steps to improve your score.
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CIBIL Score FAQs
In India, several credit bureaus collect and maintain credit information of individuals and businesses. TransUnion CIBIL is one such credit information bureau. It is licensed and authorised to collect and analyse an individual’s financial data. It calculates and assigns the scores based on repayment history, credit utilisation ratio, and credit mix. The numerical credit score that it assigns ranges between 300 and 900.
A good CIBIL score, typically above 750, demonstrates high creditworthiness and increases your chances of securing a Home Loan at favourable terms.
To maintain a good CIBIL score:
- Pay EMIs on time.
- Avoid applying for multiple loans simultaneously.
- Keep your credit utilisation ratio below 30%.
- Monitor your credit report regularly to identify and correct inaccuracies.
You can check your CIBIL score for free using our CIBIL score journey. Enter your personal details, such as your name, mobile number, date of birth, PIN code, PAN, and email address, and generate an OTP. Once verified, you can view your score instantly.
Typically, a CIBIL score above 750 is considered ideal for securing loans at competitive terms.
Tracking your CIBIL score regularly helps you track your financial health, identify inaccuracies in your credit report, and take steps to improve your creditworthiness. This ensures you are prepared to address future financial requirements.
Regularly checking your CIBIL score for personal use does not impact your credit score. This is considered a ‘soft enquiry’ and does not affect your score. However, when you apply for a loan, your credit score is assessed to understand your loan eligibility. This check is reported as a ‘hard enquiry’. Multiple hard enquiries within a short span can reduce your CIBIL score.
If you identify errors in your CIBIL report, you can raise a dispute with TransUnion CIBIL.
To check your CIBIL score for free using the our CIBIL score journey, you need to provide your name, date of birth, mobile number, PIN code, PAN, and email address.
