Call it the increasing curiosity or the rampant advertisements, one often goes to check his/her credit score before applying for a loan or credit card. While some are able to check without any discomfort, many struggle to do so.
Many of you may have failed to check your score, right? But, if you read this article, you would know a simple way to do a free credit score check. So, without any further delay, let’s get on to check your credit score generated by CIBIL, one of the leading credit bureaus in India.
How to Check Your CIBIL Score for Free?
You can do a free CIBIL score check on the bureau’s portal once a year. All that you need is to create a login by sharing personal and credit-related information online. So, while creating a login, make sure to enter details such as your name, PAN number, residence address, date of birth, the credit you are availing, the loan tenure chosen or expiry date of credit card, the loan amount or credit card limit, correctly. All these would be verified by CIBIL before it gives you the chance to create a login. You should then follow the guidelines carefully to create a User ID and password. Once your credentials are accepted, you can just log in and check.
Credit Score for Those Having Credit History
From the details to be entered, it is clear that CIBIL seeks a credit history to generate scores. The scores are assigned to individuals having a repayment track of at least 6 months to a year.
How Does CIBIL Generate Your Credit Score?
The leading bureau assigns you a score based on the repayment information provided by member banks and other financial institutions. These institutions send monthly reports to CIBIL score regarding the date of repayment, installments paid so far, the outstanding balance of loan or credit card, any incident of late or skipped payment, extent of credit utilization, etc.
All these details are analyzed and scrutinized by CIBIL to the core. Thereafter, the bureau maps the borrower you are by judging you in different matrices. Through the matrices, it looks to study your credit behaviour. Depending on its overall analysis and summation, a credit score can be assigned to you.
Instances That Can Lead to a Lower Credit Score
There are a few instances that can result in a lower credit score. Check out below, which are they?
Constant Delay in Loan or Credit Card Repayment – The bad habit of delaying loan or credit card dues, be it intentionally or unintentionally, can damage your credit profile. A couple of delays may not hurt, but constantly paying it late would dent your CIBIL score badly. What’s worse is that you would have to late payment charges as well. To avoid such an incident, you must plan your spends in a way to pay your dues on time.
Excess Utilization of Credit – Heavy credit utilization is fast becoming a trend among credit card shoppers who just go wild on grabbing everything using the power of plastic money. What it does is raise the debt obnoxiously high and create the possibility of a default in the near future. Fearing such an incident, CIBIL lowers the score. So, use your discretion before making a purchase via a credit card.
Checking Credit Scores Regularly – Regular checking of credit scores can be damaging to your profile. It’s because the score comes down due to that. You should, therefore, avoid checking it often.