How to Check Credit Score and Report Online for Free in Just a Few Steps?

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How to Check Credit Score and Report Online for Free in Just a Few Steps?

As per a recent report, 63.1% of India’s adult population comes under the coverage of private credit bureaus in India, as of 2019. In 2018, this coverage stood at 55.9%. Such statistics represent the share of the Indian adult population whose credit history is listed by credit rating institutions. 

In India, there are four credit information companies, which include CIBIL, Experian, Equifax, and Highmark. Of these four bureaus, most financial institutions defer to CIBIL. Therefore, before you look to avail credit from any financial institution, you must know how to check CIBIL score online. 

It is quintessential to possess a healthy credit score to be eligible for unsecured credit facilities, like a personal loan. However, it is also critical that you know what a credit score is to understand its heft in financial matters. 

What is a credit score?

The credit information bureaus determine each individual’s credit score after assessing a host of factors. Thus, credit score essentially quantifies a borrower’s merits and demerits. 

This score ranges from 300 – 900. It allows financial institutions to understand the level of risk applicants carry before advancing any form of credit facility to them. That’s part of the reason how CIBIL score is crucial for personal lending.

In 2017, the Reserve Bank of India made it mandatory for each of the four credit information bureaus to provide a credit report and credit score for free once every year, and also offer online checking facilities. 

How to check my credit score for free?

You can check your credit score by visiting any of the four credit bureaus mentioned above. Since most financial institutions refer to CIBIL for applicant assessment, here are the steps on how to check CIBIL score online:

  1. Visit the official website of CIBIL.
  2. Create an account with CIBIL by providing your name, mobile number, email address, etc. (You should note down the username and password). 
  3. Fill out the application form with details like address, date of birth, PAN, and submit documents like Aadhaar card as identity proof. 
  4. You will receive an OTP on the registered mobile number and/or email address for authentication.
  5. You can view your CIBIL score on the dashboard in the following page.

In the authentication step, i.e. step 4, CIBIL might pose additional questions to verify your identity, like details about your loan accounts. Therefore, to speed up the process, you might want to keep all relevant credit details handy. 

You can also check your score using an online CIBIL score calculator provided by institutionalized lenders. And you have to know how CIBIL score is calculated. In case you are applying for a Personal Loan with any specific lender, like Bajaj Finserv, you can check your CIBIL score for free directly through its online portal. 

Such financial institutions also bring pre-approved offers on loans to enable a speedy and hassle-free loan availing process. These offers are available on a host of different financial products such as personal loans, business loans, credit cards, etc. You can check your pre-approved offer by providing your name and phone number.  

Nevertheless, you might want to check your credit score throughout the year instead of only one time. That way, you can ensure to track your score and maintain it by taking note irregularities; especially, since credit bureaus reassess credit scores every month. 

Regardless, now that you are aware of how to check CIBIL score online, it might be beneficial also to learn which factors influence the same.

  1. Repayment history – Your repayment history is critical in the determination of credit score. Thence, one of the ways in which you can improve your personal credit score is by repaying dues on time. 
  2. Credit utilization ratio – It refers to the share of credit that you utilise against the total limit on your credit card(s). Maintaining a ratio below 30% reflects on your score positively. 
  3. Inquiries – When you apply for credit with any financial institution, it requests an enquiry with a credit bureau. Multiple inquiries within a short period can affect your credit score. 

Apart from these, bureaus also consider your credit mix to compute the score. All these factors point to your creditworthiness and provide for concrete assessment by lenders. Generally, what is a good credit score in India varies based on the credit facility that you want to avail. For instance, the CIBIL score for a personal loan is 750 or above. In the case of secured credit facilities, the required score may be lower.

Must Read: Pros And Cons Of Instant Personal Loan

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