October 22, 2024 · 11 mins read
Santosh Kumar
When it comes to making decisions regarding one's finances, it is always important to be well-informed. You need to clearly understand how Credit scores are calculated, analysed and evaluated. They provide a clear picture of your financial status and where you stand as to your credit history, allowing lenders like banks and non-banking institutions to assess your credit. But before getting into all of that, you need to know what credit scores are and what entails a CIBIL score.
CIBIL score is a type of credit score specifically generated by CIBIL, one of the pioneer companies providing information and financial insight to individuals and businesses. It is one of the legal and registered bureaus that serve the financial sector for Indians. Their services are required by banks, individuals, financial institutions, insurance firms as well as financial analysts.
The first step in managing your financials properly to achieve your financial goals is understanding credit and how the credit system works. The CIBIL score, a type of credit score, is a three-digit number that reflects your creditworthiness and this, in turn, has a lot of influence on your ability to get loans, credit cards and better rates of interest.
Since this equation has two components, we also need to understand what a PAN number is. A PAN card stands for Permanent Account Number, and it is a unique identification number that the Income Tax Department of India issues. Its primary function is to provide financial information and help comply an individual with financial and tax regulations. It is a crucial document that is essential for financial transactions, filing taxes, creating new bank accounts and applying for loans. This unique account number provided by the Income Tax Department of India is what can be used to check your CIBIL Score online. Read along to know more.
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Checking your CIBIL score is the basic requirement for understanding where you stand with your personal finances. It is like the cumulative result of your financial activities and decisions that you have made till the present. For every individual who wants to monitor and plan their finance, checking and updating oneself about the CIBIL score is a good practice. Fortunately, you do not have to be a professional to check and understand your CIBIL score. They can be checked online for free using your PAN Number.
In this article, we will help you navigate this journey and help you acquire your CIBIL score for free by using just your PAN number.
Follow along to find a comprehensive guide on how to CIBIL score check free online by pan number-
1. Step: To begin with, you need to visit the official website of CIBIL. On the website, you will find an option that allows a credit report service that is offered for free once a year. This service allows you to easily check your CIBIL score online for free.
2. Step: On the homepage of the website, you will find a section that allows you to check your credit score. This is normally named "Free Credit Report" or "Get your CIBIL Score". You can click on any option that is available.
3. Step: You will be prompted to provide your personal details like name, date of birth, email address, mobile number and specially your PAN number. After you input your PAN number, the website will collect and retrieve all your financial data and credit information.
*For this section, always make sure that you provide the correct details for correct results.
4. Step: In the next step, you will reach the verification stage, where you might be asked to answer questions only you can. This step is to make sure that the information you have provided is correct and that your identity is established on the website. This ensures safety and prevents misuse of personal information.
5. Step: After you have successfully completed all of the above steps, you will finally be able to view your credit score, aka CIBIL score along with a report of your credit financials. This report may include information about your credit accounts, payment history, debts, loans, etc.
After you have acquired your CIBIL score, you can download it for your reference and use it accordingly.
*Always keep your credit score and personal information about your finances personal and secure.
The above steps show how to check your CIBIL score with the PAN card online for free. By following these steps, you can easily check your credit score
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1. Individuals: it is for individuals who wish to check their credit score, understand their credit health, and track improvements. This applies to people who have just started their journey into personal finance and credit systems and have a longstanding history of credit use.
2. Lenders: lenders like banking institutions, non-banking institutions, mortgage lenders, and credit card issuers use the CIBIL score to assess a person’s creditworthiness and determine things like eligibility, approval, interest rates, credit allowance, etc.
3. Insurance companies: some insurance companies may require you to assess your CIBIL score while writing policies, specially health and life insurance.
4. Financial advisors or consultants: these people make use of the CIBIL score to assess, understand and give a detailed analysis of clients who seek professional help in managing personal finances.
5. Employers and landlords: employers may wish to check your CIBIL score, particularly when it comes to employing people who require handling large amounts of money. Landlords may also ask for your credit score to assess. Your trustworthiness and your ability to make timely payments.
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Let us take a quick look at the common terms or phrases that you may come across in your credit report-
1. Account status shows your account details like the number of credit accounts, their history and present status. This includes closed accounts, open accounts and accounts that may have also gone into default.
2. Outstanding amount- This ID is the total amount you may have due pertaining to your loan or credit card expenses.
3. As the name suggests, payment history is a monthly breakdown of your payment behaviour. This reflects whether you have maintained a proper payment schedule or are late or defaulting.
So you have acquired a copy of your CIBIL score, “what next do I do?” is the question that may plague some of you.
1. Reviewing your CIBIL score should be the first thing that you do after you lay your hands on your CIBIL score. You may check if all the details are accurate and your information is accurate. This is also the perfect time to look for discrepancies and errors that may have occurred in the report. If you find any errors, it is better to inform the concerned authority, seek professional help and try to resolve the issue as quickly as possible.
2. Another step to take would be to manage your finances as per your report. Whether this includes aligning your payment schedule, asking for an increase on your credit limit or any other necessary issue that needs immediate action.
3. Finally, always make sure to not immediately try to generate or acquire another credit score, as doing multiple inquiries is known to negatively impact your credit score and may reduce your score.
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Once you find out your CIBIL score, you will know your chances of acquiring a loan getting approval for credit cards, as well as a general idea of the rates of interest that might be offered to you. A good CIBIL score can help you negotiate better and competitive rates of interest as well.
Keeping tabs on your credit score and checking it timely will allow you to monitor any untoward activities, unauthorised activities and transactions, errors that may reflect in your account and personal details, etc. It is a good way to be updated and well-informed in this regard.
Knowing your CIBIL score details will help you plan your financial future accordingly. Whether you need to strengthen your credit history, or you need to manage your payment schedules, or review your credit accounts like loans and credit cards. This information will help you strategise for managing your finances better when it comes to paying back loans, utilising your credit card limit and maintaining a healthy credit score.
Having a deeper understanding of your financial health can help you gauge your financial standing. From loan eligibility, better interest rates, identifying mistakes, preventing fraud and most importantly, planning for your future- all doors will open after you know your CIBIL score. It is the first step in establishing your credit profile for banks and other financial institutions to identify you and analyse your creditworthiness.
1. It is always advisable to pay your credit on time. Maintaining a punctual monthly payment cycle for paying off your instalments, loans and credit card bills is a great way to ensure that your score remains positive.
2. The second important detail is to avoid making multiple credit queries as this shows restless behaviour and projects you as being in financial turmoil. Lenders and banks may associate this with being financially irresponsible and give you a negative impact.
3. Individuals should also avoid creating multiple credit card accounts as well as maxing out their credit card limit. A credit utilisation of 30% and below is considered to be a good balance.
4. One tip is to always try and diversify your credit types by having credit cards, personal loans and mortgage loans in your portfolio. This shows a good range and can positively impact your CIBIL score.
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A CIBIL score and a PAN card are the two most important components of your financial health. Together, they can help you track many things about your finances. Both are equally important in managing your financial activity- the former is like your credit report card that is directly proportional to your financial performance over the years, and the latter is what helps you create a unique identity for your financial profile. With the above step-by-step guide, you can easily check your CIBIL score online for free.
What are the necessary documents required to check a CIBIL score?
You can check your CIBIL Score just with your PAN card details, no additional documents are required.
How can a PAN card number be used to check a CIBIL score online?
A PAN number is connected to all of your financial data, so it is the primary piece of information that is used to generate your CIBIL score, as it provides a window into all of your financial details linked to your PAN account.
Does a PAN card detail affect the CIBIL score?
No, a PAN Card detail does not affect a CIBIL score as it only contains your financial information.
Does it affect CIBIL score if I lose my PAN card?
No, losing a PAN Card does not affect your CIBIL score. You, however, will be required to issue a duplicate PAN card number with the same details and PAN number.
How is the PAN card issued?
The Income Tax Department of India issues the PAN card under the supervision of the Central Board for Direct Taxes. You need to provide them with your personal details, and they verify and cross check and issue you your unique PAN number.
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