A good credit score is essential for anyone seeking to borrow money or apply for a credit card. Credit scores indicates an individual’s creditworthiness and financial history. A good credit score makes it simpler for you to secure credit products and enjoy better interest rates and repayment terms. Conversely, low credit scores may restrict loan access, leading to higher rates and unfavourable credit terms and conditions. Therefore, it is essential to understand what CIBIL is and regularly check online credit scores and ensure it remains healthy.
One of the most widely used credit scoring systems in India is the Credit Information Bureau India Limited (CIBIL) score. CIBIL provides a comprehensive credit report and score based on your borrowing history and repayment behaviour. By monitoring and following steps to check online credit score regularly, you can identify any errors or discrepancies in your report and take steps to rectify them promptly.
What is CIBIL?
To understand what CIBIL is, it is very important to know that CIBIL stands for Credit Information Bureau (India) Limited and it is India’s first credit information company that maintains credit records of individuals and companies. CIBIL collects financial information from various banks and financial institutions and creates credit reports based on that information. CIBIL scores range from 300 to 900, with a higher score indicating a higher creditworthiness.
CIBIL score Range
NA/NH:
If you haven’t utilised a credit card or never borrowed a loan, your credit history will be either “not applicable” or “no history”.
350-549:
If you check online credit scores and your CIBIL score falls within this range, it is classified as poor. This indicates that you have a history of late payments on credit card bills or loan EMIs. As a result, obtaining a loan or a credit card may be difficult since you are at high risk of defaulting on payments.
550-649:
If you check online credit scores and your CIBIL score falls within this range, it is considered average. It indicates that you may have faced difficulties in making timely payments. As a result, lenders may charge higher interest rates on loans or credit cards due to the increased risk of default.
650-749:
If you check your online credit scores and your CIBIL score falls within this range, you are making progress. It is advisable to maintain good credit behaviour and work towards further improving your score. Lenders may consider your credit application and extend loan offers, but negotiating the best interest rates may still be challenging.
750-900:
If you check online credit scores and your CIBIL score falls within this range indicates excellent credit behaviour and a remarkable payment history. Lenders perceive you as a low-risk borrower, making it easier for you to obtain loans and credit cards with favourable terms and conditions.
Important steps to check online credit scores
To check online credit scores, follow the steps below:
- Visit the Bajaj Finserv official website bajajfinserv.in/check-free-cibil-score to check online credit scores.
- Search for the section “Check Your CIBIL Score”.
- Click on the “Check Score” link to check online credit scores.
- Enter your mobile number and you will receive a One Time Password (OTP) on your mobile number.
- Enter the OTP you received and click on the “Submit” button and a new page will open.
- Fill in the online form on this new page by providing details such as your name, date of birth, PAN card number, and other required information to check online credit scores.
- Read and accept the terms and conditions.
- Click on the “Submit” button to check your online credit scores.
By following the steps mentioned above, you can easily check online credit scores and understand what is CIBIL. This will help you keep track of your credit health and take necessary steps to improve your score if needed.
Factors affecting Credit Score
Several factors can impact a person’s credit score. One of the most significant factors is the credit payment history, including the missed or defaulted payment. Another essential factor is the credit utilisation ratio, which is the amount of credit used compared to the total credit limit available. Additionally, the length of the credit history, the types of credit accounts, and the number of credit inquiries also impact the credit scores. Any negative remarks, such as bankruptcy or foreclosure, can significantly impact credit scores.
Summary
Checking your CIBIL score is an essential aspect of maintaining healthy financial habits. With the rise of online platforms such as Bajaj Finserv Credit Pass, checking your score has become hassle-free. Regularly following the steps to check online credit scores and ensuring timely payments and low credit utilisation can help you maintain a good credit score. Understanding what CIBIL is and taking proactive measures to maintain a good credit score can open up new opportunities for financial growth and help you achieve your financial goals.
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