A CIBIL Score is a kind of financial metric that shows financial institutions your creditworthiness as a borrower. It comes in the form of a 3-digit number like 686, 754, 565, or any other similar number. MOst of the financial institutions particularly banks, NBFCs, and others use it for assessing the credit history of individuals. In order to keep a healthy credit profile and take the right financial decisions, checking your CIBIL Score regularly is important.
A CIBIL represents the creditworthiness of an individual and showcases the person’s ability to manage debt responsibly. This comprehensive score is calculated using multiple parameters or we say financial factors. This includes but is not limited to payment history, credit utilization ratio, different types of credit currently in use, credit history length, and recent credit inquiries.
The higher the CIBIL score, the higher the individual’s creditworthiness. It indicates a lower risk to lenders and also leads to better interest rates & loan terms. A good CIBIL score is not just limited to good borrowing but also helps in other aspects of life, like rental applications and even employment opportunities.
If you want to know your credit score by PAN card, follow these simple steps:
Go to the official CIBIL website on Google
Here, you have to first register yourself, and then, after creating an account, you can log in.
Now, fill out the form with details such as name, e-mail ID, government ID, DOB, and others.
After successful verification, you will get your free annual credit report on your registered e-mail ID.
After checking your CIBIL score using your PAN car, you may wonder what this 3-digit number indicates. Is it good or bad? The answer is simple: if it is above 760, then it is generally considered a good credit score by the lenders. If it is less than 700, then you must improve it. A good CIBIL score improves the loan and credit card approval prospects.
In case, if your CIBIL score is low and you need a loan, you can still refer to apps like Rupee112 that provide loans even if you have a poor credit or CIBIL score.
If you want to know what parameters are increasing or decreasing the CIBIL Score, then here are the major parameters:
A healthy credit mix consists of secured and unsecured credit. A good example of secured credit is a home loan, and unsecured credit is a credit card. When you are able to manage this credit mix, it showcases that you are adept at handling it all. It helps in increasing your CIBIL score and improves the chances of approval for future credit.
If you have taken a loan on EMI or you have credit card bills, it is essential to clear the bills on time. Any delay in payment will negatively impact your CIBIL score as it indicates negligent repayment behavior. You can also set reminders or opt for auto-debit facilities to help avoid missing any payments.
When you apply for a loan or a credit card, the financial institution will check your creditworthiness for repayment. If this inquiry is hard, it will reduce your score, though for a short period. Thus, you shouldn’t apply for multiple forms of credit together.
A low credit utilization is preferred for an optimal CIBIL score. It refers to the percentage of sanctioned credit limit you have utilized. If it is high, it will indicate that you have a high reliance on credit which will negatively impact your score. Ideally, try to keep your credit utilization ratio within 30%.
Credit history is another important factor that plays a significant role in your credit score. A longer credit history indicates that you have had time to prove your ability to manage credit responsibly.
Lenders always prefer a borrower with well-established credit history as a sign of stability and financial reliability.
In this short article, we have understood how to check CIBIL score by PAN card, and what are the important factors that affect your CIBIL. A good CIBIL score will always help you whenever you apply for a loan or credit card, and in other indirect financial events.
Rupee112 Lending Partners:
( All lending partners are RBI-registered NBFCs.)
SOLOMON CAPITAL PRIVATE LIMITED is a Non Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI). RUPEE112 is the brand name under which the company conducts its lending operations and specialize in meeting customer's instant financial needs.
