Knowing your credit score and checking your credit report is crucial when you’re planning to apply for credit. Both the report and score are generated by credit information bureaus, and are based on information they receive from various lenders and banks across the country. The most common credit score is that assigned by TransUnion CIBIL Limited and is called a CIBIL score. This score is a 3-digit number between 300 and 900, which is based on your credit history and behaviour. This history is captured in your credit report. Thus, while you check CIBIL score, make sure you also check your free credit report and also understand the basics of your CIBIL score calculation.
Here’s everything you need to know about how to check CIBIL score and access your credit report for free.
How is the CIBIL score calculation done?
Your CIBIL score is based on your behaviour with credit in the past and thus indicates how reliable or trustworthy you are as a potential borrower. This is why lenders check your CIBIL score before approving your loan application. There are 4 important considerations based on which your CIBIL score calculation is done:
- Your history with repayment of debt, be it credit card bills or loan EMIs, affects your score the most. So, if you have paid your EMIs and bills on time, your CIBIL score is high and vice versa.
- Your credit utilisation is the next most essential feature that impacts your credit score. This is the amount of available credit you have used. For instance, if you have used your credit card to its maximum limit or have a number of unpaid loans to your name, your credit utilisation is high and this brings down your score.
- The number of times you have applied for credit in the recent past also affects your score. If you have made multiple applications for credit, be it via new loans or new credit cards or when you have applied to your credit card company to increase your credit limit, your CIBIL score is affected negatively. This behaviour indicates that you are credit-hungry and may not be able to repay credit in a timely fashion.
- The last element that affects your score is your experience with credit. In order to have a high score, having experience with both secured and unsecured credit is helpful. This indicates that you can be trusted with a mix of credit.
Why should I check my CIBIL score and credit report?
Checking your credit score and credit report once or twice a year is a prudent step to take before applying for a loan or credit card and to monitor your financial health. A high score means that you are able to service your loans well, are paying EMIs on time, and are handling your credit cards optimally. In contrast, a low score can help you realise that you need to take a more disciplined approach to repaying and utilising credit. In addition, checking your report can help you verify your personal details, employment information, and credit accounts in detail.
It is also important to understand that lenders check your score to ascertain your creditworthiness, and to check your risk profile as a borrower. If your score is high then you can get a better deal on a loan.
Does checking the CIBIL score and report affect my score?
When you, as an individual, check your CIBIL score and credit report, it is called a soft inquiry. This does not affect your score in any way. However, when a lender checks your score when they receive a loan application from you, for instance, it is referred to as a hard inquiry. This can pull down your score by a little bit, but this is only temporary.
However, given how important it is to know your credit score and read your credit report, you should check CIBIL score and read the report yourself. This will help you in understanding where you stand and also report any errors to the credit bureau. In most cases, incorrect information regarding a loan account can negatively impact your credit score. When you report such instances, your credit score could increase. A high credit score, after all, can help you get a loan easily, quickly and affordably.
How to check CIBIL score and get the credit report for free
There are many ways to check your CIBIL score and access your credit report; however, some of them may require you to pay a fee while others are free. To check your CIBIL score and report for free and without logging in or registering an account, simply visit Bajaj Finserv and follow these steps.
- Visit the Check your CIBIL Score page on the Bajaj Finserv official website.
- Share basic information about yourself, which includes personal details such as your name, mobile number, date of birth, PAN Card number, net monthly salary, etc.
- Submit the details and then type the OTP sent to your mobile number and email address for verification
That’s all! You can now check your CIBIL score and credit report.
One of the perks of checking your score this way is that it not only gives you access to customised loan offers, but also has no impact on your credit score! That’s right – zero impact on your actual score. And what’s more, you can even get a customised deal on a Bajaj Finserv Personal Loan which offers collateral-free financing up to Rs.25 lakh, which you can repay in up to 60 months.
For this and other offers, check your CIBIL score and report and maintain your financial health too.
Must Read: How to know CIBIL score for Personal loan