How Do I Check My CIBIL Score?

A lender almost always tries to assess the creditworthiness of a borrower making a loan application. While this is critical for availing an unsecured loan such as a personal loan or a small business loan, it is also important for other forms of secured debt products such as a housing loan or an auto loan.

Creditworthiness is captured via one’s credit score, or what is now more commonly referred to as CIBIL score, named after the first company that started a credit information bureau in the country—Credit Information Bureau (India) Ltd or CIBIL. After multinational company TransUnion acquired CIBIL, it is now known as TransUnion CIBIL. However, it remains synonymous with credit scores in the country.

The CIBIL score lies in the range of 300 and 900. A higher number means stronger creditworthiness and vice versa.

Typically, lenders tend to categorise the score of 750 as ‘good’, implying that such borrowers have a higher probability of repaying back the loan with all dues on time. This, of course, need not mean those with a lower score won’t honor the loan terms and pay back as well. Indeed, while some lenders may not offer a loan to a person with a lower score, others would be open to advancing money to such borrowers albeit at a higher interest rate.

Whenever a person makes a loan application, especially for an unsecured debt, the lender seeks a permission from the applicant to access the CIBIL score. This is done digitally and almost instantly.

Steps to Check CIBIL Score

Step 1: Create Account

Create your username, enter email address, password, and mobile number.

Step 2: Enter personal details

One needs to enter the date of birth, address and proof of identity with any one of these authorized government documents:

• Pan
• Passport
• Driving License
• Voter ID Card
• Ration Card

Step 3: Verify Identity

Once the details are provided, CIBIL will send a one-time password or OTP.

Step 4: Check Score

Once all the above-mentioned steps are followed one can access the CIBIL report and CIBIL score.

Things To Remember About Accessing CIBIL Score

• A person can get his/her CIBIL score 'free' once a year. This was not the case earlier and this has made it easily accessible to any user.
   

• One can get unrestricted access to their CIBIL score by opting for one of CIBIL's paid plans. These are time-based unlimited access subscription plans. These are currently offered for one month (Rs 550), six months (Rs 800) and 12 months (Rs 1,200). With unlimited access, one can also get access to other CIBIL services such as personalised loan offers, credit monitoring and dispute assistance.
   

• Many people believe the myth that checking their CIBIL score affects the score. The reality is that if someone is doing it on their own, it is counted as a 'soft' inquiry. It does not affect the CIBIL score.
   

• When lenders check a person's CIBIL score after a loan applicant consents, it is considered a 'hard' inquiry. It is recorded as part of the credit history and if someone keeps putting in multiple loan applications resulting in multiple hard inquiries, it lowers the CIBIL score. This happens because the person is considered credit hungry.

Conclusion

The CIBIL score is the first parameter used by lenders to assess the creditworthiness of a loan applicant. A higher score in the 300-900 range is important for getting a loan approval easily, quicky and at sweet terms. One can access the CIBIL score for free once a year from CIBIL itself via a simple process. But one can also opt for unlimited access to CIBIL scores for a period of one month to up to one year via its paid plans.

IIFL Finance offers both secured loans such as gold loan or a loan against property as also unsecured loans such as personal loan and small business loan to meet short and long-term needs via a hassle-free digital process. The company, one of India’s top NBFCs, offers these loans at the most competitive interest rates and with flexible repayment terms to people with high CIBIL scores.

FAQs

Q1. How do I check my CIBIL score online?

Ans. You can check your CIBIL score online through multiple ways:

• CIBIL’s official website - https://www.cibil.com/ Visit this site and open a free account, although you might have to pay a nominal fee to access your CIBIL score. 
• Banks or NBFCs - Many banks, Non-banking financial institutions (NBFCs) or credit card companies offer free credit score (CIBIL score) checks on their website for their customers. 

Q2. Can I check my credit score for free?
Ans. Absolutely, there are options available to check your credit score at zero cost. You can check it on CIBIL’s website but they might only provide a limited report for free. To get the entire report, you might need to pay a nominal fee. Your bank, credit-card company or third-party websites may also provide a basic report. Just like CIBIL, you will have to pay some charges to get the entire report

Q3. Is it OK to check your own credit score?
Ans. Of course, it is ok to check your own credit score. In fact everyone is advised to check their own credit report as it can help in monitoring your credit, qualify for better loan rates and even manage your credit responsibly.