As individuals, we all strive for a healthy financial life; free from debt, abundant savings, and a credit score that reads well. However, it’s easier said than done, and ensuring good financial health requires a lot of work. One of those things is checking your credit score regularly. A credit score provides a clear picture of your financial health, and it’s essential to keep tabs on it frequently.
But accessing your credit score every time may not be that easy due to high fees charged by credit bureaus. That’s why the concept of CIBIL score check free has become more important than ever.
In this article, we’ll explore everything about CIBIL score, its benefits, how to check it for free, and steps to improve it.
What Is a CIBIL Score?
A CIBIL score is a three-digit numeric summary of an individual’s credit record. The score is generated, keeping in mind an individual’s credit history across loan types, payments, and default history over time. A high CIBIL score indicates that an individual has good creditworthiness and is dependable when it comes to borrowing loans.
The CIBIL score ranges from 300 to 900, and a score above 750 is considered good by most lenders. The higher the score, the better are the chances of getting loans approved at attractive interest rates.
Why Checking CIBIL Score Is Important
There are many reasons why checking your CIBIL score regularly is important. Here are some of the most important ones:
- Helps in Identifying Issues in Credit Reports
Discrepancies in credit reports are not uncommon. But checking your CIBIL score regularly will help you identify any errors or inaccuracies in your report. This is important because these errors can negatively impact your credit score, making it difficult for you to acquire loans in the future.
- Helps You Keep Track of Your Creditworthiness
Keeping track of your creditworthiness is crucial, especially if you’re planning to take out a loan in the future. Lenders use your CIBIL score to determine your creditworthiness. Hence, a good credit score is beneficial when it comes to taking out loans with attractive interest rates.
- Helps in Building Your Credit Score
Knowing your credit score is essential when it comes to building your credit score. You need to keep track of your score and make sure you’re making timely payments and managing your credit responsibly.
How To Check Your CIBIL Score For Free
There are multiple ways to check your CIBIL score for free, and we have discussed a few of them in detail below:
- CIBIL Score Login
The official website for CIBIL score login offers services such as the CIBIL Score Report and CIBIL Market Place. CIBIL Market Place allows you to search for loans and credit cards while providing information about interest rates and fees. Additionally, it provides guidance on Udyam Registration, facilitating the process for small business owners. You can check your CIBIL score by logging in to their website www.cibil.com. After registering on the site, you will be able to check your score by entering the necessary details such as your PAN number, date of birth, etc.
The portal offers a one-time free credit report, which provides you with your credit score along with the detailed credit history. However, if you wish to access CIBIL score multiple times over a year, you will need to pay a fee.
- Through Free Credit Score Apps
Several mobile applications offer free credit scores to their users. Some of the popular applications include Paytm First Credit, Money Tap, and Free Credit Score. These applications provide an easy and convenient way to check your credit score and access your credit report.
- Through Bank Account Details
If you have an account with a bank that is partnered with CIBIL, you can check your credit score for free through your net banking account. All you need to do is log in to your account and check your credit score under the “Credit Score” section.
Steps to Improve Your CIBIL Score
Improving your CIBIL score is essential if you’re looking to take out loans in the future. Here are some essential steps you can take to improve your CIBIL score:
- Making Timely Payments
Late or missed payments can negatively impact your credit score. Making timely payments is crucial in maintaining a good CIBIL score.
- Paying Off Outstanding Debts
Outstanding debts can negatively impact your credit score. Paying off your debts can show lenders that you’re a responsible borrower and improve your credit score.
- Keeping Track of Credit Utilization
Using up all your credit can impact your credit score negatively. Keep track of your credit utilization and aim for a score of below 30% to maintain a good credit score.
- Avoid Applying for Multiple Loans and Credit Cards
Applying for multiple loans and credit cards can negatively impact your credit score as lenders consider multiple loan applications as a risk. Hence, it’s essential to apply for credit only when necessary.
Conclusion
Checking your CIBIL score regularly is crucial in maintaining your financial health. A good credit score can help you acquire loans at attractive interest rates, while a bad credit score can make it difficult for you to borrow money.
But checking your CIBIL score every time may not be easy due to the high fees charged by credit bureaus. However, there are several ways to check your score for free, and with the helpful information provided in this article, you can master your financial health and take the necessary steps to improve your credit score.