How to Check, Calculate, and Improve CIBIL Score?

CIBIL score is one of the first things that a lender will check when applying for a loan. The three-digit CIBIL score represents the potential borrower’s creditworthiness. CIBIL score ranges between 300 and 900 – the higher the score, the easier it is to get the loan approved. Read on to know how to check CIBIL score and what factors affect it. 

How to Check CIBIL Score Online?

1. To check your CIBIL score or report online, go to the CIBIL website.
2. Click 'Get Free CIBIL Score & Report’. You will be asked to log in to the CIBIL account.
3. Provide all the details such as email address, password, your name, your ID and ID number, DOB, PIN code and mobile number. Once you have filled in all the details, click ‘Accept and Continue’
4. You will receive an OTP on the registered mobile number. Type the OTP in the field and click ‘Continue’.
5. Once you have enrolled yourself, click ‘Go To Dashboard’’. You will be redirected to myscore.cibil.com.
6. Then, click ‘Member Login’. Once you log in successfully, you will be able to see your CIBIL score.

You will then receive your credit score report in your mailbox.  

How is Your CIBIL Score Calculated?

CIBIL or credit score is usually calculated based on several important factors. Let us look at some of them.   

Repayment History

Lenders go through one’s repayment history to check if the borrower is likely to miss out on timely payments. Defaulting on EMIs or paying late adversely affects the credit score. That is why one’s repayment history is considered one of the crucial factors when calculating the CIBIL score.   

Credit Utilization

Lenders prefer a low credit utilization, ideally below 30% during CIBIL score check. This is because high credit utilization implies that the borrower is dependent way too much on credit and is likely to default on repaying the loan if faced with an unforeseen event. 

Multiple Enquiries

Multiple enquiries often give away the impression that the borrower is desperate for credit. Lenders usually withhold loan approvals in such cases. Therefore, it is recommended to come up with queries only when the loan approval is guaranteed. However, making small enquiries, such as how to calculate CIBIL score or how to improve CIBIL score do not affect the credit score. 

Multiple Loans

The Credit Bureau keeps a track of the number of loans applied for and approved in the past. If the borrower is found to have applied for multiple loans or has had the loan applications rejected on several grounds, then that will negatively affect the CIBIL score. 

Credit Mix

Another important yet underrated factor to keep in mind when checking CIBIL scores is a mixture of credit. Borrowers should ideally have a mix of both unsecured and secured credits to build and maintain a robust credit history.  

Additional Read: What is a Good CIBIL Score for a Home Loan 

How to Improve Credit Score?

Once the borrower is aware of the factors determining the CIBIL score or how to check credit score, they must look for ways to increase the score to avail of a Home Loan, Loan Against Property, or a Top-up Loan.

Here are a few tips on how to increase CIBIL score – 

• Ensure paying the dues on time since late payments are often viewed negatively by lenders.
• Try to keep away from excessive credit sage and maintain a low balance 
• Keep a healthy balance of secured and unsecured loans since having too many unsecured loans in the kitty gives the lender a negative impression. 
• Be moderate when applying for a new credit. Frequently applying for it may show that the borrower is constantly seeking credit. 
• Keep a track of the co-owned or joint account regularly to avoid being held accountable for any missed or late payments as such negligence may affect accessibility to credit in the hour of need. 
• Regularly review the credit history and monitor the credit report and CIBIL scores to avoid loan application rejections. Checking the credit report frequently will keep the borrower updated on any discrepancies or probable errors. In such a case, they can file a request or log a dispute over the CIBIL score check on the website. 

Maintaining a good credit score and a spotless credit report is important when planning financial goals. Be sure to understand how to calculate your CIBIL score and focus on the ways to better it with these easy and smart hacks.