Understanding the Meaning of CIBIL Score
An individual’s credit score, more commonly known as CIBIL Score (credit score calculated by CIBIL credit bureau), is a 3-digit number CIBIL score is a numerical representation of one’s creditworthiness. Ranging from 300 to 900, the score is an indicator of their credit health, derived from their credit history, repayment patterns, and credit utilisation. Lenders rely on the CIBIL score to assess the borrower’s risk profile before sanctioning the loan amount.that represents their creditworthiness i.e., how well they can manage. To put it simply, your CIBIL score tells the lender whether you are a risky borrower i.e., whether or not you are capable and reliable of repaying the loan on time. It is one of the major factors that lenders look in to when going through loan applications. The CIBIL score is calculated on a scale of 300 to 900. The higher the score, the better your chances of getting the loan approved for new credit.
Maintaining a good CIBIL score is crucial for securing financial products and services at competitive terms, as it reflects responsible financial behaviour and helps establish trustworthiness in the eyes of lenders. Regular monitoring and staying on top of financial obligations can help contribute to a strong CIBIL score.
Individuals are advised to check their credit report regularly to look out for errors, and identify problem areas to work on those.
Steps to Check CIBIL Score for Free
One now has many ways to check the CIBIL score online, without incurring any additional charges. Here is how you can check your CIBIL score through the official TransUnion CIBIL website:
- Visit the CIBIL TransUnion official website
- Click on ‘Get Your Free CIBIL Score’
- Create your account by providing the requested information
- Enter your ID proof details
- Answer the security question that the website may provide
- Verify your identity by submitting the OTP
You will then be shown your detailed CIBIL credit report with the option to download and print it.
Tips to Improve CIBIL Score
Here are some ways in which you can keep your CIBIL score strong to benefit from its advantages:
- Make timely repayments
- Diversify your credit mix
- Limit new loan applications
- Monitor your reports regularly
*Terms and conditions apply.
Frequently Ask Questions
No, checking your own CIBIL score does not have a negative impact on your credit score. This is because checking your own credit score is considered a soft inquiry or soft pull, which does not affect your credit score.
In fact, it is a good practice to check your CIBIL score regularly to keep track of your creditworthiness and ensure that your credit report is accurate and up-to-date. However, it is important to note that when you apply for a loan or credit card, the lender will check your credit score, which is considered a hard inquiry or hard pull. Multiple hard inquiries in a short period can negatively impact your credit score, as it may indicate to lenders that you are actively seeking credit and may be a risky borrower. Therefore, it is advisable to limit your credit applications to avoid multiple hard inquiries in a short period.
