Your CIBIL score, a three-digit number ranging from 300 to 900, serves as an important measure of your creditworthiness in India. It reflects how trustworthy you are with credit, based on your borrowing and repayment history. All other financial aspects related to your credit, along with your credit score, are recorded in your CIBIL report, which provides a detailed overview of your credit transactions and financial behaviour. Together, these factors offer lenders valuable insights into your financial reliability and influence their decisions regarding loan approvals and terms.
The following table shows the credit score range and rating:
| Credit Score | Rating |
|---|---|
| 800 to 900 | Excellent |
| 750 to 800 | Very Good |
| 625 to 750 | Fair |
| 625 and below | Low |
CIBIL score is one of the important parameters that determine an individual’s Home Loan eligibility. Financial literacy is extremely important for smart debt management; thus, improving your knowledge about CIBIL score and its importance is a necessity in today’s digital world. Knowing how to check your CIBIL score online can be helpful in this regard.
To check your credit score online, create an account on the CIBIL website to become a member. We suggest you check your CIBIL score with your PAN Card credentials once every year by following the steps below:
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Log in to the CIBIL portal.
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Click on ‘Get your CIBIL score’.
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Select a subscription plan.
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Create a login password.
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Enter PAN and ID type and verify your identity.
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Pay the subscription fee and then authenticate yourself via OTP/email.
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Enter personal details to check credit score.
A credit report is a statement that comprises credit details such as an individual's credit activity, number of active credit accounts, loan repayment, and inquiries. Collectively, these details help determine a borrower’s financial stability and creditworthiness.
The details are compiled by credit bureaus from creditors such as financial institutions and credit card companies. This credit report enables the lender to decide whether a loan applicant matches the housing loan eligibility criteria or not.
The report also helps lenders decide the eligible loan amount and interest rate for the individual. Since a lot depends on the credit report, individuals need to make an effort to review it frequently. By doing so, they will be able to identify inaccuracies and get them rectified at the earliest to avoid a decrease in their credit score.
Individuals also have the option to access credit details via PAN Card or via mail. Reviewing your credit score and report timely can help eliminate errors and improve your credit score.
Also Read: Most Common Credit Report Errors and How to Fix Them
Although lenders take various factors into consideration when evaluating loan or credit card applications, having a high credit score can offer several advantages, such as:
Improved Chances of Approval
A high credit score indicates responsible credit behaviour, including a clean repayment record, which decreases the risk of default for the lender and increases the chances of approval for a loan or credit card.
Lower Interest Rates
Borrowers with higher credit scores can benefit from lower interest rates for various credit products, including personal loans, Home Loans, and credit cards.
Access to Pre-Approved Loans
A high credit score may increase the likelihood of accessing pre-approved loans and credit card offers.
Qualification for Premium Credit Cards
Credit card companies may provide access to premium credit cards that offer better rewards, such as cashback, reward points, and exclusive services, to applicants with a high credit score.
Approval for Higher Loan Amounts and Credit Limits
A high credit score can also increase the chances of being approved for higher loan amounts and credit limits, as it typically indicates responsible credit behaviour and a lower risk of default.*Terms and conditions apply.
Also Read: How to Maintain Good CIBIL Score?
CIBIL Score: FAQs
Sections 80C and 80CCC are not the same. Section 80CCC is a sub-section of Section 80C. While Section 80C deals with all the investment avenues explained in detail in this article, Section 80CCC only deals with tax exemptions available on payments made towards pension plans and mutual funds.
It does not matter how much you invest in the various investment options mentioned in the Section 80C deduction list; the maximum limit under Section 80C is Rs.1.5 Lakh, and therefore, you won't be able to claim more than that under this section.
Section 80C of the Income Tax Act, 1961, is further subdivided into Section 80CCC, Section 80CCD(1), Section 80CCD(1B) and Section 80CCD(2).
No, if you have invested in any of the tax-saving instruments specified under Section 80C of the Income Tax Act, you will be able to claim exemption only if you can provide proof of the investments. If you do not have the required documents or receipts, you won't be able to claim any deductions.
Section 80D of the Income Tax Act, 1961, deals solely with the premiums paid toward medical insurance. The maximum tax deduction that one can claim under this Section depends on the age of the person. The maximum deduction available for people aged below 60 years is Rs.25,000 towards self and Rs.25,000 towards insurance premiums paid towards health policies of a spouse, parents and dependent children. In the case of people aged above 60, this number increases to Rs.50,000.
The maximum tax exemption available under section 80C is Rs.1.5 Lakh. You can invest in all the tax-saving instruments specified under Section 80C, but the maximum exemption will still be Rs.1.5 Lakh.
There is no way to increase one's limit for tax exemption under Section 80C. The maximum deduction under 80C is Rs.1.5 Lakh.
Yes, a taxpayer can claim a deduction under Section 80C every year, provided they make eligible investments or expenditures during that year.
Yes, one can claim a tax deduction on donations made towards charities. However, the charity you have donated to must be a charity or fund recognised by the government for deductions under Section 80C.
