Although digitization has simplified the loan application process, it is necessary to meet the qualifying criteria to secure these financial instruments. Hence, understanding the basics of how to check CIBIL score becomes imperative as lenders evaluate applications based on the applicant’s profile. Your credit score plays a crucial role in this assessment. CIBIL score is a 3-digit number ranging from 300 to 900 that represents your creditworthiness and is used by banks and financial institutions to determine your eligibility for loans, credit cards, and other financial products.
Several banks and financial institutions’ websites and apps, such as Bajaj Finserv, allow you to check your credit score. By understanding how to check CIBIL score and checking your credit score regularly, you can monitor your creditworthiness, identify errors or discrepancies, and take steps to learn more about how to increase CIBIL score.
Importance of CIBIL score
An individual credit status can be determined with the help of a CIBIL Score. Understanding how to check CIBIL score and maintaining good financial management habits will result in a higher CIBIL Score. In contrast, a lower CIBIL Score indicates low creditworthiness, making it difficult for banks to approve loan applications. A good CIBIL Score can result in lower interest rates and minimal paperwork, while a poor CIBIL Score can result in higher interest rates or outright loan denial. Although other factors may influence loan approval, the applicant’s CIBIL Score significantly determines the interest rate banks offer.
Benefits of checking your CIBIL score
Assist in tracking financial activities
Regularly monitoring your credit score and knowing how to check CIBIL score can enable you to keep track of your financial activities, allowing you to determine if your actions positively impact your credit score.
Assist in verifying the information
A low credit score can result from an error/ inaccuracy of information in your credit report. If that’s the case, you should report it immediately to the concerned credit bureau and your bank to get it corrected.
Assist in checking credit card and loan options
Knowing the basics of how to check CIBIL score can help you discover improved credit card or loan options. You can receive personalized pre-approved loan and credit card offers by checking your credit score.
Important tips to understand how to increase CIBIL score
Improving your CIBIL score or knowing how to check CIBIL score is crucial for accessing loans and credit cards with favorable terms and conditions. Here are some important tips to understand how to increase CIBIL score.
- Pay your bills on time: Late payments can significantly negatively impact your CIBIL score. Pay your bills in full and on time to avoid this.
- Keep your credit utilization ratio low: The credit utilization ratio is the amount of credit you use compared to your total credit limit. Aim to keep it below 30% to improve your CIBIL score.
- Check your credit report regularly: Checking for errors or discrepancies is important. If you find any, dispute them immediately to avoid any negative impact on your CIBIL score.
- Limit credit applications: Applying for too much credit at once can harm your CIBIL score. Limit credit applications and only apply for credit when you need it.
- Maintain a healthy credit mix: A mix of credit, such as credit cards, loans, and mortgages, can improve your CIBIL score, but it is important to maintain a healthy balance and not take on too much debt.
- Keep old credit accounts open: The length of your credit history is an important factor in your CIBIL score. Keep your old credit accounts open to maintain a long credit history.
Steps to understand how to check CIBIL score online
- Visit the official website of a financial institution like Bajaj Finserv to know how to check CIBIL score.
- Look for the link that provides a CIBIL score check option.
- Fill in the necessary details, including your name, date of birth, PAN card number, and contact information.
- Double-check the details you have entered and submit the form.
- Wait for your CIBIL score to be generated.
- Once your CIBIL score is generated, you can view it online.
To know more about the basics of how to check CIBIL score, you may consider using Bajaj Finserv Credit Pass service, which provides unlimited CIBIL score checks and exciting loan offers.
Conclusion
Knowing how to check CIBIL score online using Bajaj Finserv Credit Pass has become crucial to managing your finances responsibly. Knowing how to check CIBIL score allows you to confidently make informed financial decisions and access credit at competitive rates. By accessing your credit score online, you can identify errors, fraud and inconsistencies in the report and take steps to rectify them. By regularly monitoring your credit score and understanding how to increase CIBIL score, you can identify areas for improvement and take steps to enhance it. Being proactive and responsible with your debt can result in better terms, increased creditworthiness, and a brighter financial future.