What is CIBIL score?

CIBIL score represents your ability to pay back the borrowings for financial institutions like banks, NBFCs, etc. CIBIL score is a numerical description of your creditworthiness. It is a three-digit number that falls in the range of 300 and 900. 300 is the lowest and 900 being the highest score.

A higher CIBIL score comes with several benefits like faster loan approval, negotiated interest rates at the time of getting a credit card or loan.

When you apply for a credit card or loan, bank and NBFCs (Non-banking Finance Companies) will check for your credit score to know whether you are capable of repaying the borrowings.

Why should I check my CIBIL score?

If you wish to avail a personal loan, home loan, car loan or a credit card, the CIBIL score is something that every lender checks before processing the same. It is better to check your credit score before applying for a loan to avoid the loan rejection in case of a financial emergency.

If you know your creditworthiness in advance, you will have an idea of whether you are eligible to get a loan or not. In the case of a bad credit score, you can start looking at other options to lend money.

Another reason is, it is critical to keep a track on your CIBIL score. It is the best way to find out what are the chances that you may get a loan. Checking your CIBIL score online does not affect your score or the report. However, if multiple lenders are checking your score, this may adversely affect your credit score.

How to check CIBIL score online?

It is not necessary that only banks and financial entities can check CIBIL score. An individual can also check his/her CIBIL score online and get the CIBIL report within a day. As per RBI’s rule, you can review the CIBIL report once a year for free. All you need to do is provide necessary information like name, contact information, date of birth, gender and PAN details. Also, to get the report, you need to submit a few documents. Once your documents are verified, you receive the credit report containing CIBIL score within a day.

To check your CIBIL score online, you can visit the CIBIL TransUnion website and place a request to inspect your CIBIL score online. Log in to the official website of the CIBIL by clicking here.

Steps to check your CIBIL score online

To check your CIBIL score online, you need to follow the simple steps as mentioned below.

Visit - cibil.com and click on “Get your CIBIL score”.
Create an account with username and password. Fill up the details such as name, email address and contact number.
Enter your personal details. These would be your date of birth, residential/office address, gender, identity proof (PAN card /Aadhar number).

Enter the information on your credit card number or loan account number, if any.

Verify your identity with an OTP sent to your registered mobile number.

You can check your credit score and records under different sections of the report such as personal information, contact information, employment and account details and enquiry information.

How is CIBIL score calculation done?

You might be curious to understand what are the parameters they consider while calculating CIBIL score and what is the weight of each parameter while calculating CIBIL score online?

The credit repayment history (35%)
The total loan amount you owe (30%)
The number of years servicing loan (15%)
The number and sum of the amount you have taken or recently applied for (10%)
The credit mix (10%)

Credit score range and what it means

As we know that CIBIL score ranges between 300 and 900, let’s have a look each CIBIL score range and what it signifies.

NA/NH (New borrower): You need to have a credit history to calculate your CIBIL score online. If you do not have a credit history, your credit report will mention your credit score as “NA or NH”.

Between 300 and 699 (Poor): A credit score in this range is considered a poor rating. It implies that you have defaulted your debt payments and have unpaid dues to the lender.

Between 700 and 774 (Average): Credit score that falls under this range is considered as an average score. You stand a chance to get a loan; however you still need to take measures to improve your score.

Between 775 and 799 (Good): There is a good chance that your application for a new loan or credit card is accepted with this score. A score between this range signifies that you have managed your previous borrowings responsibly and are a safe borrower.

Between 800 and above (Great): CIBIL score between this range implies a perfect track of records concerning your previous credits. You can avail best offers on your borrowings for interest rate and loan tenure. This score helps your loan application to get faster approval from the lenders and makes your life easy.

Now we know what a CIBIL score is, how to check CIBIL score online and what does each score range mean. Now let’s understand how to read and interpret your CIBIL report. (link to the article: What is CIBIL report and its importance)

Some important terms to understand your credit report better.

DPD (Days Past Due): It is an indicator of how many days the payment is being late in that particular month. More than Standard (STD) or “000” that means it is a negative remark on your payment history.

CN (Control Number): It is useful if you want to raise a dispute against your credit report. It is always mentioned at the top of the report.

Written off amount: When the lender has no hopes to receive the payment from the borrower, and it is mentioned as written off amount.

Settlement Amount: When a credit card payment or a loan amount is disputed between the lender and the borrower, they may agree at an amount that will be paid by the borrower. Such settlement amount after a dispute is called a settlement amount.

It is easy to check your CIBIL score online in a few simple steps. However, it is essential to keep a regular track on your CIBIL score. As an individual, you should continuously strive to improve your CIBIL score to be in good books of lenders.