What is CIBIL Score? Why it is important?
The full form of CIBIL is Credit Information Bureau Limited, or you can also call it a credit score. It reflects the creditworthiness and ability to repay as a borrower. CIBIL is a 3 digit number ranges from 300–900. Any score which is 750 or above is considered as a good credit score for getting a loan approved quickly with a negotiating power on terms and conditions of loans. CIBIL is calculated based on the financial history of the applicant.
The credit score is determined based on factors like payment history, credit types, number of loan accounts, opening and outstanding loan amount, and length of your credit history. Different banks and financial institutions have different benchmarks for issuing loans to applicants.
Why CIBIL Score is important?
CIBIL plays an important role as it helps lender and borrower in the following ways:
Online CIBIL Score facility makes it easier for the applicant to check his or her status that keeps on changing monthly. A person who is handling his or her financial activities well will always have a good credit score. A lower CIBIL Score signifies that the applicant has low creditworthiness and banks refrain from giving loans to such applicants.
When you go for a free CIBIL Score online check on any of the lender’s websites, along with your score you can also check the loan and credit card offer you are eligible for. The loan offers given to a good credit score applicant is at the best interest rate and with minimum paperwork.
If the CIBIL Score of the candidate is very low, banks either do not approve his loan application or grant him a loan at higher rates of interest.
Overall, among all the factors that help the lender to make a loan approval decision, CIBIL is the most important one. An applicant having a higher CIBIL Score may get a loan at a lower rate of interest whereas the applicant having a lower CIBIL Score may get a loan at a higher rate of interest.
How to check my CIBIL Score free is a question that arises in the mind of many? Here is the answer
Steps to get a free CIBIL Score online at IndiaLends platform:
· Log on to the website of IndiaLends.com
· Click on the tab’ Credit Report’ on the right hand side.
· Click on ‘Free Credit Score’
· Enter your personal and employment details along with your PAN Card number
· You will receive an OTP on your registered mobile number
· Enter OTP and view your credit score instantly
Once every 12 months, you also download your credit report for free with any of the credit bureaus like Experian, TransUnion, or Equifax.
With the advent of online Fintech platforms, checking CIBIL Score online is not a challenging task now. You can easily check it online and know how well you’re doing with building credit.
