December 12, 2024 · 11 mins read
Santosh Kumar
A CIBIL score is a three-digit number falling between 300 and 900 used to assess a borrower's creditworthiness by any financial institution. The CIBIL score is also called the credit score of an individual. In India, the CIBIL score of all people is calculated by four credit bureaus or Credit Information Companies (CICs). These are TransUnion CIBIL, Equifax, Experian and CRIF Highmark. These bureaus collect the credit-related data of all individuals from a number of different sources and then use it to create a credit report and generate a CIBIL score for that person. This includes information such as how timely the individual repays his dues, what is his credit utilisation ratio, how much secured vs unsecured credit he has taken, how many times he has enquired for any form of credit, if there are any loan settlements or loans written off, etc.
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It is of utmost importance that all individuals regularly check their CIBIL score. This is because this three-digit number is one of the factors most financial institutions use when deciding whether to approve your credit application. This could be an application for a loan, a credit card, a mortgage, etc. Since your credit score reflects how responsible you have been with the available credit in the past, banks and other lenders check it to evaluate how much risk is involved in lending money to you. That is, the risk of you defaulting on repayment. A higher credit score shows responsible credit behaviour and highly improves your chances of getting a loan or a credit card. In contrast, a lower CIBIL score will reduce your creditworthiness, and you will find it quite challenging to approve your loan and credit card applications. Even if your applications get approved, the terms at which you will be provided credit will be very disadvantageous for you. You will get a smaller-than-expected amount credited to you at exceptionally high interest rates. Even the loan tenure would be greatly reduced, making it difficult and burdensome for you to repay the amount.
This is why it is advised that you frequently check your CIBIL score so you can stay on track, rectify any mistakes, and make improvements so that your score remains as high as possible.
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You can check your CIBIL score on the official websites of any of the four credit bureaus of India. Every Indian citizen is entitled to one free credit report from each of these credit bureaus every year. However, since checking your score more frequently is a good habit, you can opt for the paid subscription plans on these websites that allow you to check your credit score more often. You can also check your CIBIL score for free on the official website or mobile app of your bank and credit card providers or even on the online portals of FinTech companies such as Paytm, Bankbazaar, Cred, Paisabazaar, etc.
No matter which platform you choose to check your CIBIL score, you will be asked to submit some basic information and documents.
The personal information that you will be required to provide in order to check your CIBIL score is:
1: Your full name
2: Your date of birth
3: Your Email ID
4: Your Registered mobile number
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Having a PAN card is highly preferred while checking your CIBIL score because it is one document that is exclusively associated with all your financial and bank account related details and information and makes it quite convenient for the credit bureaus to check your credit details. However, in case you cannot access your PAN card number for whatever reason, there are other documents you can use in its place and you will still receive your CIBIL score. Here is a list of those documents:
1. Passport
2. Voter ID Card
3. Driver's Licence
4. Ration Card
Wherever you check your CIBIL score, you will be prompted to choose any one of these four documents and your PAN card to proceed. Make sure to choose whichever one you want and fill in the details very carefully.
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As we have already informed you, there are multiple ways and many different platforms that you can visit in order to check your CIBIL score. Checking the CIBIL score on the official CIBIL website (www.cibil.com) remains the most popular one. This could be because TransUnion CIBIL is India's oldest Credit Information Company and commands a lot of trust from both financial institutions and individuals alike. Therefore, we are providing you with a step by step guide on how you can check your CIBIL score on the official CIBIL website yourself and that too without a PAN card.
Step 1: Visit the official CIBIL website, which is www.cibil.com
Step 2: Register on the website and create an account if you already have one. In case you have an account, use your credentials (username and password) and log in to your CIBIL account.
Step 3: Look for an option that says 'Check CIBIL Score' and click on that.
Step 4: Provide the aforementioned personal information. Make sure you make no spelling or other errors.
Step 5: Now comes the documents. Choose any one of the options provided and continue. You could proceed with the PAN card number or choose any of the other available options.
Step 6: Once you have submitted all these details, you will receive an OTP on your registered mobile number. Enter that OTP and proceed.
Step 7: You can now visit your dashboard and have a look at your credit score for free.
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Many people who check their CIBIL scores, especially those with the intent of getting a loan or a credit card, often find that their CIBIL score is not good enough for them to be eligible for the desired credit. What you must know in such a case is that your CIBIL score is not permanent and can be changed. This change will not happen instantly, but it is possible to get a higher CIBIL score over a period of time.
Before you continue to read exactly how you can increase your CIBIL score, you must keep one thing in mind. In case any of your loan or other applications have been rejected recently because of an insufficient credit score, do not make the mistake of applying again instantly. The number of enquiries/applications you make for loans is known as hard enquiries, and each one is recorded in your credit report. Having too many credit enquiries can impact your CIBIL score negatively. Loan rejections also affect your score in the same way. So, you must follow the tips below to increase your credit score and wait for the changes to reflect before you apply again to have a higher chance of getting your application approved.
Let us now proceed to look at the multiple things you should do in order to change your CIBIL score and make it higher:
1. Repay Your Debts: First and foremost, repay all your current debts as soon as possible. Pending payments lower your CIBIL score. Also, make it a habit to pay all your instalments regularly.
2. Have more secured than unsecured credit: Secured credit is given when the borrower keeps something as collateral with the lender. This means the lender is at a lower risk of loss. Unsecured credit, on the other hand, is given without any collateral and thus involves a higher risk for the lender. Having more secured than unsecured credit is a great way of getting a higher credit score. This is called having a healthy credit mix.
3. Keep Credit Utilisation Ratio Low: Even if you have a lot of credit available, using a lesser amount lowers your credit utilisation ratio and shows that you are less dependent upon credit. This increases your CIBIL score. Avoid loan settlements: Settlement of a loan with a lender can negatively impact your credit score by showing that you are incapable of paying back your dues. You must avoid this at all costs.
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A PAN card is essential when you want to check your CIBIL score. However, it is not impossible to check your CIBIL score without a PAN card. A PAN card is preferred because it is one document that is exclusively connected to your bank account and financial information, but you will also have the option of choosing other documents such as your Voter ID card, Passport, Ration card or even your driver's licence in order to check your CIBIL score. You can visit the official CIBIL website or the website of any of the other three Indian credit bureaus to check your credit score without a PAN card. You can also check it on the online platforms of your bank and credit card provider and even on websites like Paisabazaar, Banbazaar, Cred and Paytm. It is imperative that you check your credit score regularly so that you can ensure your eligibility for loans and credit cards. When you check your credit score frequently, you can take any necessary measures to improve it in case it is not as good as it should be.
1. Can I use my Voter ID card in order to check my CIBIL score online?
Yes. Your voter ID card is one of the documents that is valid if you want to check your CIBIL score online.
2. Can I check my CIBIL score for free?
Yes, you can check your CIBIL score for free on the website of any of the four India credit information companies. However, you can only check your credit score for free once annually. In case you wish to check it more often you can buy a subscription plan or visit online platforms like Bankbazaar, Cred, Paytm, Paisabazaar, etc. These fintech companies allow everyone to check their credit score on their platforms for free. You can also check it on your banks' websites and/or mobile apps and credit card providers.
3. Are credit scores and CIBIL scores the same or different?
Your credit score is also known as your CIBIL score. They are the same thing. TransUnion CIBIL is India's oldest and most well-known credit information company, responsible for generating the credit scores of all individuals. This is why the credit score is commonly referred to as the CIBIL score.
4. My loan application was rejected. Will this impact my CIBIL score?
Yes. A loan application that is rejected negatively impacts your CIBIL score. It lowers it. This is why it is suggested that you do not re-apply for a loan immediately after one is rejected.
5. Is 765 a good CIBIL score?
Yes, 765 is a good CIBIL score. Most financial institutions and lenders see scores above 700 as good enough to approve loan and credit card applications.
6. Can I use my Aadhar card to check my CIBIL score?
No, you cannot check your CIBIL score using your Aadhar card. You can use the Aadhar card as proof of identity on the CIBIL website, but it is not one of the documents that can be used to see the CIBIL score itself. You can use your PAN card, Voter ID Card, Driver's Licence, or ration card to check your CIBIL score online.
7. Why is my credit score shown as NH?
NH in your credit score means you do not have a credit history. A credit history is essential to have a credit score. This can happen if you have never taken a loan, credit card or any other form of credit.
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