New Delhi: Nowadays, taking loans has become a commonplace affair. But if you are looking to take a loan from banks or other financial institutions, then you should make sure to have a good credit score. If you have a low credit score, then you can face some problems in obtaining the loan.
Your credit score is checked by the CIBIL and hence, it is also known as the CIBIL score. It is important to maintain a good CIBIL loan to become eligible for loans. In case you are wondering what is CIBIL score, this article will answer some of your questions.
What is a CIBIL score?
The full form of CIBIL is Credit Information Bureau (India) Limited. It is India’s leading credit rating agency that reflects the creditworthiness of every person. The CIBIL has made the financial markets more transparent, reliable and structured and has made financial institutions more aware of how to manage risks and control bad loans.
CIBIL Score is your credit history’s three-digit numeric summary which is derived using the credit history found in the CIBIL Report. The report, also known as CIR or Credit Information Report is the credit payment history across loan types and credit institutions of a person over a time period. However, a CIR does not contain details of investments, savings, or fixed deposits.
Banks and other financial institutions check the CIBIL score of a person before granting the loan. The CIBIL score of a person is calculated based on the credit behaviour as reflected in the ‘Accounts’ and ‘Enquiries’ section of the CIR. The score ranges between 300 and 900 and one has to keep the score above 700 for the CIBIL score to be considered good.
How to check the CIBIL score?
Step 1: First, you have to visit the website of CIBIL and log in.
Step 2: Then you have to provide the necessary details like name, contact number, and email address and click on continue.
Step 3: On the next page, more details need to be entered including additional details including PAN number.
Step 4: You have to answer questions about your loans and credit cards. The CIBIL score will be calculated based on that information and the credit report will be generated.
Step 5: It is important to note that once you log in, many of your details will be auto-populated.
Step 6: Once the details are submitted, the CIBIL score will be revealed. Also, you can get your credit report on the dashboard.
