Good CIBIL Score: One important parameter used by banks/financial institutions to determine an individual’s creditworthiness is CIBIL score. The CIBIL score is essential in granting approval and the rates of interest, whether it be for a loan, credit card or mortgage, etc. So, how to check CIBIL score with PAN card and what will a good CIBIL score really be? Let us delve deeper into these questions.
What is a CIBIL Score?
A CIBIL score is a three-digit number on the scale of 300-900. Your CIBIL score is a three-digit number generated by TransUnion CIBIL, India’s premier credit information company based on your credit history, repayment behaviour, credit usage and other metrics. CIBIL score mainly reflects the behaviour of an individual when it comes to financial obligations, thus a higher score makes you more attractive to lenders.
What is a Good CIBIL Score?
Let us understand what your CIBIL score signifies: 300–599 (Poor) Such a score shows poor credit conduct and late payables or defaults. Loan applications are almost certain to be turned down. A score between 600–699 (Fair) indicates you may have had issues repaying debts in the past. Other lenders might accept your application but charge higher interest rates. Good (700–749 This range is decent K for many lenders. You can obviously qualify for the loans, but it will not be on good terms. 750 and Above (Excellent) If someone gets an ideal score of 750+, that person has a very good credit profile. Quicker loan approvals, the highest credit limits and the lowest interest rates are what you can look forward to. According to a report by TransUnion CIBIL, approximately 79% of loans get approved for individuals with a score of 750 and above.
The Importance of Good CIBIL Score
Loan Approvals – A CIBIL score above the 700 mark increases your chances of getting a loan approved from banks and NBFCs. Competitive Interest k: Borrowers with high credit scores benefit from the competitive interest rates lenders offer. Higher Credit Limits: Good score enables you to get more credit cards and loans with better terms and conditions. Quick Approvals– If the individual has a good CIBIL score, he can avail quick approvals for his loan.
Without further ado, here are the steps to check the CIBIL score using your PAN Card.
You PAN card is the widely used document to check CIBIL score. Here are the first few steps to obtain your score: Step 2 – Go to the official TransUnion CIBIL Website (www. cibil. com). Die Registrierung oder AnmeldungAls neuer Benutzer registrieren (mit E-Mail-ID, Handynummer und Einzelunternehmer-PAN-Details). If you have existing users, Just log in. Provide PAN Card Details Enter your pan card details like number and Date of Birth and some other personal details to confirm your identity.
Verify with OTP Follow the process by verifying an OTP sent to your mobile number registered under your name. Check CIBIL Score Once you have done the above-listed steps and authenticated yourself, you will be able to check your CIBIL score along with an elaborate credit report. Tip: Some external financial apps/websites, including BankBazaar and Paytm, provide limited free access to your CIBIL score directly (using your PAN card) before issuing a credit report.
The Factors That Impact Your CIBIL Score
This is why it is important to cognizant about what causes good CIBIL score: Payment history — Failure to pay bills on time or defaults have a great impact on the score negatively. Credit Utilization Ratio: If you utilize more than certain amount (30-40%) of your credit limit, it can hinder your point. Credit Mix: A combination of secured (home loans) and unsecured loans (credit cards) are best Credit Inquiries : An excessive number of loan or credit card applications cause hard inquirings which can negatively affect your score. Credit History — If you have a long and healthy credit history, this bodes well for your score.
How To Make Your CIBIL Score Better
Be it payment of EMIs or Bills, be timely in payments Timely payments show financial discipline. Maintain a Low Credit Utilization: Aim for less than 30% utilization of your credit limit. Don’t Apply to Several Loans: So many requests will negatively affect your score. Check Your Credit Report: Review for flaws or inconsistencies that could impact your score. Stat: The average increase to a CIBIL score from repaying debts is 30–50 points, according to research.
Conclusion
To get financial products on good terms, a good CIBIL Score (750 or above) is also advisable. It is as simple you need to check your CIBIL score with PAN card so that you’ll always know how is your credit health. A healthy CIBIL score will allow you to avail of lucrative financial opportunities if you pay all your bills on time, do not max-out your credit availability and check your score now & then. Need help in making an infographic or step by step visual guide for checking your CIBIL score? Let me know!