Published on May 21, 2020Updated on Aug 16, 2023
In order to avoid obstacles while borrowing a personal loan from any financial institution, an individual should have or rather needs to have a good credit score. Having a good credit score will help you get loans quite easily and then the loan can be used to fulfil your purpose which can be of buying yourself a house, car, or even a family vacation, wedding ceremony, etc. But before all of that, we need to know what exactly is a credit score or CIBIL score.
The CIBIL (The Credit Information Bureau Ltd), is the leading agency for generating and giving credit reports and scores concerned to the people. CIBIL sources financial data of people such as debit and credit card information, personal loans, and other finance related things from leading financial institutions in India. A CIBIL credit report is then generated for CIBIL score check and that includes all the data. This is also known as a Credit Information Report (CIR).
CIBIL was integrated in 2000 and has continued to increase its reach across the country. It is backed by some major global credit bureaus and agencies such as the TransUnion International and Dun and Bradstreet.
A CIBIL score is generated by the bureau after taking into account an individual’s detailed information of the credit. The agency even provides credit report services to the banks and other financial institutions. A CIBIL score is a number generally ranging from 300-900 that represents an individual’s creditworthiness. CIBIL Score depends on your credit history and repayment behaviour. If the score is high, it suggests that the credit history is good and the repayment behaviour is responsible.
CIBIL scores are generally calculated based on at least 6 months of historical financial information of the person. The information is then fed into an algorithm with around 250 different variables.
Checking the CIBIL score online is a fast and simple process. You can check your credit score or CIBIL score online by either paying and getting the exact score or by receiving an estimated score which can be done by using the free method online. Either way, you basically get a report that has your CIBIL score.
This report is generated online either through a third-party site or by using the CIBIL official website to check the CIBIL score and based on this report, you can get your personal loan, or any other loan. The report is basically a history of your credit behaviour and includes detailed data on all your loan and credit-based affairs with banks, credit card companies and other lenders.
Follow these simple steps to check your CIBIL Score:
Must Read: Minimum CIBIL Score For Personal Loan
As mentioned earlier, CIBIL allows you one free credit score check every year, while for all other times, you are charged a fee. However, there are many online tools freely available that provide an estimate to your credit score based on certain input parameters. Some of them may actually give you your exact CIBIL score. However, do ensure that you use a trustworthy source, since many of these tools take your information and then spam you with emails and calls for various products which you may not even require.
In order to get your CIBIL report (which will include your CIBIL score as well), you must follow these steps:
1. Choose one of the following subscription plans:
2. Enter the PAN details, email id, DOB and your gender.
3. Mark a tick on the box before the terms and conditions line.
4. Click on ‘Proceed to Payment'.
After the payment is done, you will be taken to an authentication page. On this page, you will be asked to answer 5 questions related to your credit history. If you answer at least three of them correctly, your identity will be authenticated. Your credit report will be emailed to your registered address within 24 hours.
Under the circumstance of a failed authentication, you have the option of posting a hardcopy of the application that has been duly filled out. Ensure that you include the relevant documents for address proof used to generate your CIBIL id with the application. Once all formalities have been completed, you should then receive your credit report via post at your postal address.
Must Read: How to Read CIBIL Report?
Thus, a free CIBIL score check can be obtained through CIBIL’s website directly or by using online tools. However, if you are applying for a personal loan, we would advise you to avoid the following:
Applying with many lenders has the disadvantage of lowering your CIBIL score. This is because CIBIL keeps a track of the number of times a person’s credit report is being requested. Multiple attempts from multiple entities will indicate that you are applying for multiple loans and/or are being rejected.
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