Lenders are more likely to offer loans at affordable terms to borrowers who pose a low lending risk, which means those who have a low probability of default. However, you may wonder how this can be predicted. That’s where your credit score comes into play. Your credit score is assigned to you by credit bureaus like TransUnion CIBIL, CRIF or Experian based on information sourced from leading financial institutions from whom you may have applied for loans with or taken credit cards from. This information is compiled in a Credit Information Report (CIR) and then summarised into your score.
TransUnion CIBIL is one of India’s oldest and most popular credit rating agencies, which is why your credit score is often referred to as your CIBIL score. This score is between 300 and 900 and the higher your score, the most creditworthy you are deemed by lending institutions, be it a bank, an NBFC, or a home financing company.
Usually, lenders consider a score of more than 700 for secured loans and more than 750 for unsecured loans a good score. Having a score like this helps you get the loan amount you desire along with a competitive rate of interest. In fact, as per TransUnion CIBIL over 79% of loans are offered to customers who have a high CIBIL score.
All this makes it extremely important for you to know your CIBIL score before you apply for a loan. However, you don’t need to know how to calculate the CIBIL score yourself. The first thing to do is learn how to check your CIBIL score. You only need your PAN and a few basic details – the process is online and, in most cases, free.
Steps to check your CIBIL score
You can visit the CIBIL website or the Bajaj Finserv website to check your credit score. Keep in mind that you can check your score free on the CIBIL website only once annually. After this, you will need to pay a subscription fee starting from Rs.550 and going up to Rs.1,200 based on the package you choose for unlimited access.
1: Visit the CIBIL website
2: Click on ‘Get Your Free CIBIL Score & Report’
3: Create your account on CIBIL by entering the following details:
- Email address
- Password for the account
- First and last name
- The ID type you are using and the ID number
- Date of birth
- Your pin code
- Mobile number
4: Click ‘Accept & continue’
5: Input the OTP sent to your mobile number
6: Click on ‘Go to Dashboard’
Check your credit score and access the credit report.
The other way to check your online CIBIL score for free is using the Bajaj Finserv website. To do so, follow these simple steps:
1: Visit the CIBIL score page on the Bajaj Finserv website
2: Click on ‘Get Your CIBIL Score’
3: Enter a few basic details including your PAN
4: Click ‘Submit Details’ and verify the OTP
You can now access your CIBIL score. That’s not all! You also get access to your Credit Health Report, a detailed analysis of your credit health, the actions that have impacted your score, and useful tips that you can use to improve your credit score.
Checking your CIBIL score with Bajaj Finserv also gives you another advantage. Based on your credit profile, you may be eligible for a number of offers on loans and other financial products.
For instance, you may have a Personal Loan offer of up to Rs.25 lakh that you can use to access funds in just 24 hours. Keeping this information in mind, you can become a smarter borrower and get quick access to credit when you need it.