How to Check CIBIL Online Absolutely Free of Cost?

CIBIL score, also known as Credit score, is a three-digit number that represents an individual’s creditworthiness. The score is calculated on a scale of 300 to 900, with 300 being the lowest and 900 the highest. The Credit Information Bureau (India) Limited generates the CIBIL score based on the details in one’s credit report. The higher the score, the better the chances of getting your loans and credit card applications approved faster by lending institutions. You can check your CIBIL score for free with an online tool before applying for a loan or credit just to be sure of your standing. Read on to know what is a good CIBIL score for home loan and how to check it online free of cost!

What Is the CIBIL Score for Home Loan? 

The CIBIL score is an important parameter to check an individual’s eligibility for a home loan. Banks and financial institutions usually prefer applicants with a credit score of 750 and above. Not only does it guarantee prompt approvals but also fetches the borrower cheaper home loan interest rates as the lender sees them capable of repaying the loan amount on time. A score between 650 and 750 is also considered good CIBIL score for home loan in India. However, the rates offered may not be as attractive and you will most likely have to adopt some measures to improve cibil score. 

Any score below 650 is considered poor by most lenders and thus, attract very high interest charges. Applicants with a score closer to 300 are much more likely to face rejections, and therefore, need to do some serious damage control to get their CIBIL score back on track.

Importance of CIBIL Score

Your credit score plays a vital role when availing of credit or a loan. The first thing a lender does is check your CIBIL score through the credit agency or bureau to assess your credit behaviour. The credit score is taken into consideration for the following reasons – 

Loan or Credit Card Eligibility

Applicants with a high score are usually granted loans or credit easily without much hassles. This is because lending institutions consider them as low risk borrowers unlikely to default or delay payments. Besides such applicants also are offered better deals on credit card purchase.

Attractive Rate of Interest

Banks and financial institutions usually charge lower rates when taking a loan if your CIBIL score exceeds 750 due to the low risk involved. For instance, a score above the desired range may fetch you home loan interest rates starting at as low as 8.65%. 

Higher Credit Limit

A good CIBIL score will not only fetch affordable interest rates but can also help you extend your credit limit. 

How to Check Your CIBIL Score for Free?

According to the RBI guidelines, all credit information agencies in India, including TransUnion CIBIL Ltd. are mandated to provide an annual credit report containing the individual’s CIBIL score absolutely free of cost. 

Here are the steps you can follow to check your CIBIL score online –

• Visit the official website
• Navigate to ‘My Account’ on the top right corner
• Click on the option saying ‘Get Your Free Credit Report’
• Access the credit score and report for free

Borrowers can create their account to get free credit score using these steps –

• Go to the CIBIL website and provide your name, mobile number and email ID to set up an account with a Username and Password.
• Enter your personal details, including address, DOB, and ID proof, such as Aadhaar/PAN number.
• Verify your identity using the OTP be sent on the registered mobile(game console repairing indianapolis) number/email ID.

You will be able to check your CIBIL score and download the credit report once the above steps are completed. 

Ways to Increase Your CIBIL Score

If your CIBIL score is on the lower side, you must take the necessary measures to improve it. Here are a few tips to get you started –

Ensure Timely Payments

Make sure all your loan EMIs, debts and bills are paid on time. Set a reminder or cut down on unwanted expenses to avoid missing delayed or default in payments.

Limit Your Credit Inquiries

Avoid applying for too many credit or loans at a time. That way, the inquiries made will not show up on the credit report and your credit score will remain unharmed.

Check Your CIBIL Report for Errors

It would be a good option to check credit report regularly. Check for errors and inaccuracies and get them rectified to ensure your report is updated. 

Extend Credit Limit 

To boost your score, get in touch with the credit card issuer and ask for an increase in the credit limit. However, be sure not to exhaust the entire limit.

Maintain a Healthy Credit Mix

Maintain a good balance of credit in terms of both secured and unsecured loans when aiming for a good CIBIL score. 

Summary

As known, CIBIL score is one of the major eligibility parameters for a home loan. While the score range varies from 300 to 900 based on the individual’s credit history, most lenders demand a score of 750 or above. Go through the importance of a good CIBIL score and focus on improving it. Check your CIBIL score for free using an online tool. Remember, the free report is available only for a calendar year, after which the borrower may have to pay.