Does Your Credit Score Qualify You for a Loan? Check Your CIBIL Credit Report for Free Online

Introduction

Achieving your financial goals might need assistance at time. Taking up a loan to buy a home or purchase a car or expand a business is a logical option for a lot of us. However, after application lenders will check for your CIBIL score to see whether you qualify for receiving a loan. Basically, the CIBIL score lets the lender whether you have the ability to repay your loan. Like any score in the real world, this is also higher the better. During the assessment, CIBIL score is the primary factor under consideration. Knowing your score before applying will let you understand your eligibility standing. You can check your score for free once every year.

What is a CIBIL Score?

A CIBIL score gives a summary of the repayment behaviour of your previous loans and credit history in the form of a 3-digit number. It will range from 300 to 900. Ideally, your credit score should be closer to 900, and that is considered a stronger profile.

Based on the Accounts and Enquiries sections of the CIBIL credit report, your score is calculated. This section will include your previous and current loans (if any), credit card details, repayment history and recent loan applications. CIBIL considers a score above 700 to be a good score. However, every lender will have different eligibility criteria as per their policy.

The score is calculated using information in the Accounts and Enquiries sections of your CIBIL credit report. This may include your loans, credit cards, repayment history, outstanding balances and recent applications for credit. According to CIBIL, a score above 700 is generally considered good. However, every lender follows its own credit policy and eligibility standards.

If I have a good CIBIL score, is my loan approval guaranteed?

A good CIBIL score improves the chances of your application getting approved, but it does not guarantee approval. Instead, what your credit score does it, it creates a first impression by showing how good you were on your borrowing habit.

• Annual income
• Employment or Business stability
• Existing dues
• Age and repayment tenure
• Value of the collateral (if applicable)

What Is a CIBIL Credit Report?

The report is the complete picture behind your credit score as it contains a detailed information.

A CIBIL report generally contains:

• Personal details: Name, date of birth and identity information
• Contact details: Address and telephone numbers
• Employment or income information
• Loan & credit card account details
• Credit limits, outstanding balances and account status
• Monthly repayment records

Going through your credit report will help you understand your score better. At times, it also reveals incorrect information if not updated. You can flag them to get it corrected.

How to Check Your CIBIL Credit Report for Free Online

The Reserve Bank of India (RBI) mandated the provision of full credit report once for free for every credit information companies. They need to provide the same electronically after authentication of personal details.

Here’s how you access your report.

1. Visit the official CIBIL free credit report page.
2. Select “Get free CIBIL Score and Report”
3. Create new account or sign in if you are already registered.
4. Enter your personal information like name, date of birth, mobile number, email address and PAN.
5. Complete the identity-verification.
6. Get access to your full credit report.

Will Credit Score Reduce if Checked?

CIBIL score will not reduce if your check it. In fact, it is considered self-enquiry. However, if multiple lenders access your report after submission of a loan application, it may not be viewed well from the lender’s eye.

What Should You Check in Your Credit Report?In addition to the 3-digit score, you have to verify the following:

• Whether your name, PAN and contact information are correct
• Whether every listed loan or credit card belongs to you
• Whether closed accounts are shown with the correct status
• Whether payments made on time have been reported accurately
• Whether overdue amounts and outstanding balances are correct
• Whether you recognize all recent credit enquiries
• Whether any account is incorrectly marked as settled, written off or overdue

In case you find any inaccurate information, immediately dispute it.

How to Improve a Low CIBIL Score?

Healthy financial habits can strengthen your credit score.

• A good start is to pay your EMIs and credit card bills on time.
• Clear overdue amount wherever possible.
• Avoid using up the entire available limit in your credit card.

Final Word

Your CIBIL Score is one of the most important factors in your financial profile that decides your loan eligibility. But it isn’t the only one. Checking your free annual CIBIL report allows you to understand your current position, correct inaccuracies and apply loan with confidence.

Before submitting your next loan application, take a few minutes to review your report. A small check today could help you avoid surprises and become better prepared for your borrowing journey.

Curious where your credit health stands today? CLICK HERE to get your free CIBIL score report in just 2 minutes with zero paperwork.