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HOW TO CHECK YOUR CIBIL SCORE ONLINE FOR FREE WITH A PAN CARD?

In today's day and age, the consumer’s purchasing power has been particularly enhanced with the easy availability of a number of financial instruments at their disposal. Credit cards and loans are forms of these financial instruments that help people achieve their dreams as well as financial goals, with convenient processes and repayment methods.

But have you ever thought what makes the banks provide you with a credit card or loan when you ask for it? Or, on what basis does the bank lends you money for expenditure and can it decline your application?

What is CIBIL Score?

The CIBIL Score is one of the important factors and measures in getting this much-needed access to credit. CIBIL Score is a consumer’s credit score that is a reflection of the individual’s credit history and credit profile. It denotes the individual’s credibility to take and repay the loan on time, without defaults. It is represented in the form of a three-digit numeric number ranging between 300 to 900 and is based on the past credit behaviour of the applicant. Next, you might be wondering how to check the CIBIL score online when you might need of a loan? There are a lot of ways to find out your creditworthiness and check the CIBIL Score online for free.

How is CIBIL Score Calculated?

CIBIL scores are calculated on the basis of at least 6 months of historical financial data of an individual. The data is fed into an algorithm with 258 different variables; each with a different weightage. This includes the transactions as well as the behaviour attached to borrowing and repaying of the money, and the consumer’s habits as shared by the banks and other financial institutions with CIBIL. The score is based on details such as loan accounts or credit cards, payment statuses, outstanding amounts and days past the due date, all of which are shared in the CIBIL Report. You can download the CIBIL Report for a detailed explanation of each factor. The free CIBIL report also highlights other discrepancies in your credit profile, in any, and how you can correct them. Since the CIBIL Score and report are based on several factors, it keeps on changing based on the transactions carried out by the consumer.

Who Provides CIBIL Score?

CIBIL, or the Credit Information Bureau India Ltd., is a Reserve Bank of India (RBI) authorized credit agency that was incorporated in the year 2000. CIBIL is the premier agency that provides credit reports and scores to individuals in India. If you wish to know your CIBIL Score, then stay tuned as we explain the steps further in the blog. The agency also offers credit report services to the banks and other NBFC (Non-banking financial companies).

CIBIL sources all the financial data pertaining to the individual, such as loan and credit card information from leading banks and other financial institutions in the country, and then presents it in the form of a CIBIL report. This report is known as the Credit Information Report, or CIR, and determines the individual’s capacity and capability to take credit.

How to Check CIBIL Score Free Online?

There are a number of ways through which it is possible to check one’s CIBIL score online for free. To check CIBIL Score online for free by PAN number, you can use any one of the following methods.

Directly from CIBIL Website

The bureau allows individuals to conduct 1 free CIBIL score check.

  • You can login on to the CIBIL website and create a free account.

  • Enter your details such as name, age, address, etc.

  • Valid ID proof with the corresponding ID number will be required – enter your PAN details here.

  • After successful account verification, you will be able to check CIBIL Score for free.

From your Bank/ Financial Institution

Some banks allow their customers to check CIBIL Scores and reports for free through net banking or their mobile applications. This service can be availed once every year. You can contact your bank to check if they allow you to check CIBIL Score online for free.

Third-Party Apps

You can also make use of the various third-party apps and websites that offer free credit score checks. Registered users can view their credit scores and credit report for free.

Importance of CIBIL Score

A higher CIBIL score suggests good credit history and responsible repayment behaviour. In simple terms, an individual with a high CIBIL Score is more likely to repay the loan back in time, as he/she has done it in the past, and this responsible behaviour can get the loan or the credit card application approved without hassles.

The Score is considered ‘good’ if it lies within the range of 700 and 900. This will be taken into account by banks and NBFCs when considering a loan application for most retail loans, whether it is a home loan or a vehicle loan. Apart from the obvious credit implications, a higher CIBIL Score has other advantages too:

  • Quicker and faster loan application process

  • Easier loan documentation process

  • Lower interest rates on the loan

  • A higher quantum of loan

  • Longer or more flexible repayment tenure

  • Choice of lenders

A positive credit profile will not only make your application seem attractive to the lender but will also help you fulfil your dreams and pave the way for future access to credit. Remember to monitor it regularly to ensure your creditworthiness is not affected. Check your CIBIL Score for free using a CIBIL Score calculator and know the true chances of you securing a loan for your next venture.

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