November 14, 2024 · 11 mins read
Santosh Kumar
Did you know that it is imperative that you keep a regular check on your credit score? Your credit score, or what is also commonly called your CIBIL score, is not merely a 3-digit number. It is something that heavily impacts your finances in various ways. Today, banks and other financial institutions offer a multitude of benefits, services and offers. These are very attractive and advantageous, but it is not so easy to avail of them if you do not have a good credit score. The logic is simple: banks and other financial institutions are providing you with their money, and therefore, they need to have trust in you and your capacity to pay back their money on time, and your credit score is a direct reflection of this capacity. However you have handled your finances and credit in the past will directly affect your credit score. A high credit score shows that you are a responsible customer.
Maintaining a good credit score is imperative to ensure your financial health and let you enjoy a lot of different financial benefits and other services offered by various banks. When you have a good credit score you are entitled to many different advantages. You must be aware of all these advantages so that you can be mindful of your financial habits and maintain a credit score that is good and lets you enjoy the benefits discussed below. Let us discuss them in detail:
1. Eligibility for Loans: Whenever you wish to apply for any kind of loan - personal, business or home loan - lenders will first and foremost check your credit score. This is because your credit score reflects your entire financial history, and at the same time, it also tells them of your creditworthiness. In short, it tells the lenders if you are responsible for handling money and whether they can trust you with their money or not. Most banks and financial institutions consider 700 or higher as a good credit score. So, it basically acts like a guarantee of repayment for them.
2. Lower interest rates: The conditions of the loan will be extremely unfavourable even if you are able to obtain one with a very low or poor credit score. In addition to allowing you to apply for a loan, having a high credit score will enable you to get one at a cheaper interest rate, which will ease the financial burden on you.
3. Higher Amount Sanctioned: Not only will you be able to negotiate lower rates of interest but having a higher credit score will also get you a higher loan amount itself. When banks see that you have been financially responsible in the past, they are more likely to trust you. The more they trust you, the higher the amount they are willing to sanction. This means you can now make even bigger and better purchases or investments since you now have access to more money.
4. Credit Card Benefits: We all know that a credit card is a very beneficial financial tool that makes spending both easy and extremely rewarding. A good score indicates that you can be trusted with a credit card and that the credit card providers can be assured of timely payments. Therefore, you should know your credit score to see if you are eligible to get a credit card of your choice.
You must be aware of how to know your credit score because a high credit score will help you get a higher credit limit as well, thereby improving your spending power and capacity. Along with a higher credit limit you will also be able to avail exclusive credit card offers and amazing cashbacks. The higher your credit score is, the more advantages you will be able to enjoy.
Read More:: How Students with No Income Can Get a Credit Card
Now that you know the manifold advantages of having a good credit score, you might be wondering, 'how can i check my credit score?' Checking your credit score is a very quick and easy process, and you can do it yourself whenever you want to. The best part is that you do not even need to pay any money to check your credit score. Many people have the misconception that there are charges they have to pay in order to know their CIBIL score, but this is not true. You can check your credit score online in just a few clicks and this can be done for free. We will provide you with all the methods for how to check my credit score and a simple and easy to follow guide so that you can check your credit score online conveniently. In this guide you will also find the answer to how to check credit score online.
1. Visit the official CIBIL website and select the option that says 'Get Your Free CIBIL Score '.
2. Submit the following details: email address, password, first name, last name, valid government ID proof (PAN card, passport, Voter ID, Driver's License number, ration card number), date of birth, pincode and mobile number.
3. You will now receive an OTP on your registered mobile number. Enter it and proceed.
4. You can now log in with your credentials. Then, you will be redirected to myscore.cibil.com.
5. Click on the option that says 'Member Login', and you will be able to view your credit score for free.
Keep in mind that all of the four credit bureaus of India - TransUnion CIBIL, Experian, Equifax, and CRIF High Mark - provide you with only one free annual credit report each calender year. If you wish to check your credit score for free more than once a year you can opt for the paid subscription plans they offer or choose one of the other methods that are discussed below.
Read More:: Is 720 a Good CIBIL Score?
If you want to know how to know credit score, you can also check your credit score by visiting the official website of your bank or credit card provider. Similarly, Non-Banking Financial Companies (NBFCs) let their customers check their credit scores online without any additional cost.
1. Use your credentials to log in to your net banking account or the mobile app of your specific credit card provider. Under the services or a similar section, you can view an option that says 'CIBIL Score' or 'Credit Score'.
2. After clicking on it, fill up the required details carefully and correctly. This will be your personal information and your account details for verification purposes.
3. Click on submit and you will be shown your credit score on the screen. Most banks and credit card providers let their customers view their credit score multiple times in a year unlike the four credit bureaus of India.
While banks, credit card providers and NBFCs allow people to check their credit scores on their websites and apps, it is a service that is usually limited to their customers only. However, you need not worry. We will provide you with another way of how to find credit score. There are many online platforms that will let you check your credit score for free even if you are not their customer. These are called fintech platforms that are developed to provide financial guidance and services to all individuals and companies. Some popular fintech names include Bankbazaar, Paisabazaar, CRED and Paytm. These are wonderful solutions to how can you check your credit score.
1. The method for getting credit scores online on such fintech platforms is very easy, and you can get your CIBIL score in just a few minutes.
2. Visit the official website or mobile app of your preferred fintech company and find the option that says 'Check Credit Score' or 'Check CIBIL score.'
3. Now, all that you have to do is fill in your personal information and some account details for verification. This will only take a few minutes.
4. On successfully submitting the information, you can view your credit score instantly.
Read More:: What is the Use of CIBIL Score?
A credit score reflects your financial responsibility and whether lenders can trust you with their money. This is why a credit score is a major determining factor in your eligibility for all kinds of loans and credit card applications. Since a person's credit score is so important, you should always know how you can check your credit score. If you are also curious how to check credit score then the three methods discussed are great options for you. Visit the official website or mobile app of CIBIL or any other three credit bureaus of India to get a free credit report once every year. Another way of how to get credit score is to check your credit score for free on the online platforms of banks, credit card providers or fintech platforms.
Is it important that I know how to know my credit score?
Yes, it is of utmost importance that you are aware of what is my credit score and how to check your credit score yourself. Your CIBIL score impacts your financial life greatly. If you know how to check your credit score you can take the required steps to maintain it or improve it in case it is very low. Doing so will ensure that you are able to enjoy benefits such as loans, credit cards, lower rates of interest, exclusive credit card offers and much more.
Can I check my credit score online?
Yes, if you wish to know how to check your credit score online, there are lots of different ways to do it. You can check your credit score on the official CIBIL website or mobile app or that of any other three CICs (Credit Information Companies), your bank website or mobile app, or even on the online portals of NBFCs or your credit card providers. All these methods are very convenient and extremely quick.
Are credit scores and CIBIL score the same thing?
Yes. Both credit score and CIBIL score are terms used to refer to a three-digit number between 300 and 900, and that reflects all your credit history and determines your eligibility for many things, including but not limited to loan and credit card approvals. They are just different words for the same thing.
How to see credit score on the bank website?
To see your credit score on the official website of your specific bank, login with your credentials (username and password) and navigate to the option that says 'check CIBIL score' or 'check credit score'. Then provide the personal information and account details asked for. Once the details are submitted, you will be able to see your credit score instantly.
Can I change my credit score?
If your credit score is poor or very low you can do some things to improve it to a higher number. Start paying your bills on time, do not make too many credit requests, diversify your credit mix with a good balance of secured and unsecured credit and have a healthy credit utilization ratio. Once you start making these changes, your credit score will also gradually improve.
Do I have to pay to check my credit score?
No. You do not have to pay to check your credit score. You can check it for free on the official website or mobile app of any of the four Indian Credit Information Companies (CICs) - TransUnion CIBIL, Experian, Equifax, and CRIF High Mark - once every year. If you want to check it for free more than once annually, you can do so on online platforms such as bank and NBFC websites/ apps or fintech websites such as Bankbazaar, Paisabazaar, Paytm, etc.
Do I need to check my credit score for getting a home loan?
Yes. You need to know your credit score if you are applying for a home loan or any other type of loan. This is because banks and other lenders check your credit score to see how well you have managed money in the past. If they see you have a good credit score, they are obviously more likely to trust you. So you should check your credit score before applying for a home loan to know your eligibility and if you will be able to negotiate for benefits such as a higher loan amount and lower interest rate.
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