December 16, 2024 · 11 mins read
Santosh Kumar
Next to physical and emotional health, credit health is an important buzzword in the modern world. As physical health is important to tackle illness, credit health is important to tackle financial emergencies in our lives. At times of financial emergencies, if your credit health is good, you can avail of loans or credit cards to smoothen your financial burden, and you never know when a financial emergency may hit you. So, following good financial practices to maintain good credit health is always good.
Your credit score defines your credit health. Various credit bureaus evaluate your credit score based on your past credit history, and CIBIL is one of the major credit bureaus that many lenders depend on to evaluate the creditworthiness of borrowers. This article is a guideline to understand what a CIBIL score is, its formula, how to check a CIBIL score without a mobile number, and tips to improve your CIBIL score.
The CIBIL score is a score that falls within the range of 300 and 900 and specifies the financial responsibility and the repayment capacity of an individual. If your score is higher, then you have a higher chance of getting credit products approved quickly and easily. On the other hand, if your score is low, lenders consider you a risky borrower who may not repay the credit bills or loan EMIs and hence may reject your application. Here is a detailed table of different ranges of CIBIL scores and what they specify.
CIBIL Score Range: 750 to 900 Where you stand: Excellent What is the consequence: Your repayment history is excellent, and you are at the safest level to easily qualify for credit products. You can even bargain for better interest rates or longer tenure.
CIBIL Score Range: 650 to 750 Where you stand: Good What is the consequence: Your repayment history is good enough to avail of loans at better interest rates.
CIBIL Score Range: 550 to 650 Where you stand: Average What is the consequence: You might have missed or delayed a few payments in the past or would have made a financial mistake that has decreased your score. You can avail loans of lower amounts and higher interest rates.
CIBIL Score Range: 300 to 550 Where you stand: Poor What is the consequence: You have serious repayment history issues, and lenders will consider you a high-risk borrower. Hence, they may reject your credit application or demand collateral as a safety measure to recoup the losses in case of payment default.
The above table is a common range of score limits. However, different lenders use different limits to decide upon credit product approval.
To check your CIBIL score, first, you need to register on the CIBIL website. To register on the CIBIL website, you can provide a phone number and your basic details to complete the process. In this case, you will receive an OTP for verification. If you want to register with something other than your mobile number, then here is the process to register without a mobile number.
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If you don’t want to reveal your mobile number, you can use PAN card details to complete the authentication process and to get your CIBIL score.
1. Visit the CIBIL home page.
2. Click on the ‘Get Your Credit Score’ button on the top right corner of the page.
3. There will be different subscription plans. Compare the benefits of each and choose the one that best suits you.
4. Enter your details like PAN Card number, email address, Date of Birth and Gender.
5. After entering the captcha code, acknowledge the terms and conditions.
6. Now click on the 'Proceed to Payment' button and make the payment to complete the registration process.
7. Once registered, you will get your login credentials via email.
The registration process is a one-time process. You can log in to your account to check your CIBIL score and credit report. You will get updated reports based on the plan you have chosen. You can opt for a free CIBIL score check once a year. It is a good practice to check the credit score and credit report frequently and fix any issues as early as possible to maintain a healthy CIBIL score.
Like, following a healthy lifestyle is good for your body and mind, and following healthy financial practices is good for your credit health. Here are a few tips that you can easily adopt to ensure you are always within the good CIBIL score limit.
Never miss or delay a payment is a cliché yet it is powerful advice to maintain a healthy CIBIL score. Many people miss or delay payment without knowing it is bad for their credit health, but due to lack of planning, they fall short of the amount or forget the due date. Hence, plan your budget wisely to have some reserve amount for bills and EMIs a month ahead. Also, it's human to forget. So get the help of technology. Set reminders or automate payments to ensure you are always on time regarding payments and bills.
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You will have a credit limit for each credit account up to which you can use. Though you can use to that limit, it is advisable to avoid full utilisation of credit accounts as it mirrors how much you depend on your credits for managing your financial needs. Overly depending on credits is a negative point for your credit score and new credit approval process. Hence it is advisable to keep your credit utilisation around 30%. That doesn't mean you should never use the maximum limit.
Proving your credit management capacity, especially of different types of credits, is a positive aspect of the CIBIL score. So, dare to try different credit accounts whenever a need arises. The key is to promptly pay the bills. So don't apply for credit cards or loans that will be out of your budget limit. Having a wide range of credit mixes in your credit history is a factor that has the least effect on your CIBIL score. Hence, avoid applying for new credit products just to improve your CIBIL score.
While considering applying for new credit products, check your score and only apply to a maximum of two lenders at a time. When you apply for a loan or credit card, the lender checks your credit score to make the lending decision, which will be considered a hard inquiry. Multiple hard inquiries in recent times are considered bad and negatively impact your CIBIL score. Also, you can check your CIBIL score before applying for loans or credit cards. If you are at the safe limits to avail of credit products, then you can apply or consider improving your score before applying for the credit product.
Yes, an older account with a good repayment history proves that you are good at making payments on time and consistently repaying the bills. If you plan to close a credit account as you feel that you don't need a higher credit limit, then you can downgrade, if possible, to keep the older account active.
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Helping your friend or relative when in need is a good deed, but not always. So before co-signing for your acquaintances, check their creditworthiness and repayment possibility. Co-sign for the one whom you trust is capable of repaying the amount and will be responsible for paying back the credit bills on time. When you co-sign, you will also be considered responsible for any payment defaults, and hence, your CIBIL score will also be affected.
Keep an eye on your CIBIL score and credit report so that if your score is beginning to fall, you can take the necessary steps to set it right. By frequently checking your CIBIL report and score, you can identify any errors in the payment history and correct them as early as possible. So make it a habit to at least check once or twice a year to ensure every information is right and your score is good enough to prove your creditworthiness.
Planning is everything. Before opting for credit products, analyse your current income and expenditure and decide whether or not you can pay the bills or EMIs on time. After getting your loan or credit card approved, plan your budget to reserve the bill amount in advance. Also, plan when to pay the bills and set reminders to avoid forgetting the due date. Plan your schedule for checking the credit score and report so that you will periodically check for errors without fail.
Your credit score is calculated based on your credit history, and hence, staying away from credit products will make your credit score "NA." The NA CIBIL score, though not a negative aspect, is not proof of your creditworthiness, and hence, lenders may feel reluctant to approve credit products. So, start your credit journey as early as possible.
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Maintaining a good CIBIL credit score has become a need in the modern world. Check your CIBIL score frequently and ensure that you are within safe limits. Now that you know how to check your CIBIL score without a mobile number, you can check your CIBIL score even without revealing your mobile number. Follow the tips mentioned to be proactive about your credit health and stay loan-eligible for any financial emergency.
Will checking my CIBIL score without a registered mobile number be considered a hard inquiry? No. You will register with your PAN card details to check your CIBIL score. If you check your CIBIL score, it will be considered a soft inquiry, which will not impact your credit score.
Why should I check my CIBIL score?
Only by checking the score will you be able to know how creditworthy you are from the lender's perspective. Also, by checking the CIBIL report, you can avoid any wrong information that will spoil your CIBIL score.
Do all banks consider a CIBIL score of more than 650 good?
That depends on the bank's policy. However, a score of more than 650 is usually considered good for loan and credit card approval.
How can I correct any wrong details in the CIBIL report?
It is easy. Visit the CIBIL portal and initiate the dispute resolution process. Follow the instructions to report your problem. You will have to submit the documents to support your claim. The CIBIL authorities will investigate the problem with your lender, update the correct information, and revalidate the credit score if your claim is valid.
Can I check the CIBIL score without a mobile number for free?
Yes, you can. CIBIL allows you to check your CIBIL score for free once a year. Register on the CIBIL website without a mobile number and then you can log in to check the score.
What is the information that may go wrong in the credit report?
Payment details that are not updated or wrongly updated, closed accounts that are shown as active, personal details, contact details, and unwanted inquiries are a few of the wrong details that may affect your credit score. So frequently check your CIBIL report for all this information and raise a dispute if anything is wrong.
Why is my CIBIL score NA?
NA is a score given to newbies, i.e., individuals who have never taken out a loan or credit card. For newbies, there will be no credit history, and hence, a credit score cannot be calculated. Though the NA score is not a negative score, lenders will have no proof of your creditworthiness.
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