TransUnion CIBIL is one of the four credit rating agencies that the RBI has authorized to collect information on credit users and use this information to assign them a credit score that reflects their creditworthiness and also helps lenders perceive the risk for them in doing business with the user. The credit rating agency assigns credit scores based on data provided to it by banks and other lending institutions. The credit score it assigns credit users is called the CIBIL score.
The CIBIL score can range from 300 to 900. The closer an individual’s CIBIL score is to 900, the higher their chances of loan approval. To get a housing loan in India on loan terms and conditions that help make loan repayment easy and stress-free, one must have a CIBIL score exceeding 750.
While we are on this topic, we must also familiarize the readers of this article with the CIBIL report or the Credit Information Report. The CIBIL report is a detailed document that elaborates on your credit history and repayment track record. The information in your CIBIL report helps CIBIL decide your credit rating. You can also study this report to get tips on how to improve CIBIL score.
Credit users must check their CIBIL score once every few months. This allows them to take corrective measures to improve their CIBIL score if they find it to be unsatisfactory.
How to Check Your CIBIL Score for Free Online
These days, most lenders allow credit users to perform a free CIBIL score check online on their websites. Many other websites also offer this service. Checking one’s CIBIL score for free through one of these sources requires one to share personal information, such as name, address, email ID, city of residence, etc. These websites will also ask you to share your PAN details.
PAN or the Permanent Account Number is a unique alphanumeric number assigned to every taxpayer of this country. PAN is unique and no two people can have the same PAN number. Having access to one’s PAN details allows website owners to match credit users with the right credit profile in TransUnion CIBIL’s system and get them their right CIBIL score.
Checking your CIBIL score through your lender or any website that offers this facility is legal and safe. The information you share will remain secure and you need not worry about a security breach.
However, do keep in mind that such websites allow credit users to only check their CIBIL score. If your CIBIL score is below 750 and you want to get a housing loan, you will need access to your CIBIL report to understand the factors harming your score and develop a foolproof plan to improve your CIBIL score.
Let us discuss how to check your CIBIL score and obtain your CIBIL report through TransUnion CIBIL.
Steps to Check Your CIBIL Score and Obtain Your CIBIL Report
- Log in to your CIBIL account and select the option ‘Know Your Score.’
- Next, you will see an online application form on your screen. Fill out the form by providing information, such as your name, date of birth, etc. You will also be asked to attach an ID proof.
- After you fill out the form, you will be taken to the payments page. Here, depending on how often you want CIBIL to send you your CIBIL score and CIBIL report, select a subscription plan.
- Next, select your desired mode of payment.
- Make payment.
- You will now be redirected to the authentication page. Here, you will be prompted to answer 5 questions. You must answer at least 3 of them correctly to authenticate your identity with CIBIL.
- Once this is done, TransUnion CIBIL will send you your CIBIL score and CIBIL report in your email within 24 hours.
Tips on How to Improve Your CIBIL Score
If you find your score unsatisfactory, here are a few things you can do to improve your CIBIL score.
- Your repayment track is important. It is in fact the most important factor that affects your CIBIL score. Maintaining a clean repayment track with no instances of missed EMIs and credit card bills will help you improve your CIBIL score.
- Credit users who are excessively dependent on credit have a low CIBIL score. To save yourself from coming across as credit-hungry, maintain a low credit utilization ratio. Not applying for loans and credit cards for some time will also work in your favour.
- Maintain a mix of both secured and unsecured loans to demonstrate your ability to handle all kinds of debt.
- Never close old loan accounts. Doing so will wipe out your credit history and the older your credit history, the better your credit score.