How To Check My Free Credit Score?
If you want to get a loan from banks, make sure you have a good credit score.
The credit score is the one that depicts your financial stability for repaying the loan. All banks and other financial institutions verify your credit score before approving any loan. Currently, there are four Credit Information Companies (CICs) that are Credit Information Bureau (India) Limited, Equifax, Experian, and CRIF who can help you to check your credit score online.
If you want to verify your free Credit score, there are some easy steps you would like to know. Here is the step by step guide to check free credit score online.
How does one check credit score?
Following January 2017, the Reserve Bank of India has given authority to all the four credit information companies to provide one free credit score and credit report every year.
Here are some easy steps to follow for checking your credit score online:
- Step 1: Open the CIBIL website.
- Step 2: Enter your basic information such as name, phone number, email address, and click continue.
- Step 3: write down your further details regarding your Pan number. Enter your Pan details correctly to continue to the next step.
- Step 4: Answer all the inquiries correctly regarding your loans and credit cards. Based on these details, your credit score will be calculated.
Now you can access your credit score, which is usually a 3-digit number varying between 300 and 900. A score below 700 is poor, and a score close to 900 is the most reliable one. Although, when the banks and financial institutions check credit scores, you should keep in mind that the score should be above 700.
It’s advisable to check credit scores at least once in a year. In fact, You should monitor your report periodically as the Banks and NBFCs report loan borrower track record to Credit Bureaus monthly.
Factors affecting your Credit Score
- Delaying your credit payments.
- Constantly neglecting your loan dues or EMIs.
- Terminating old credit line shrinks your credit history. This harms your credit score.
- Having a single credit account will negatively affect your credit score. Hence, you should maintain right mis of secured and unsecured loans.
Improving your credit score
You can raise your credit score with the below smart ways. Still, you need to follow these moves constantly and keep a check on your EMIs and Credit Card payments.
- Always Check Your Credit Report monthly for any error and misuse.
- Repay your all dues on time.
- Maintain right credit mix
- Apply for new credit as per your financial limits.
- Review your credit history occasionally.
- Track the financial activities of your joint applicants.
A bad credit score can damage your future credit requirements. This situation is beyond your control as you cannot improve your score instantly. Therefore, it is advisable to keep a close eye on your Credit Score. It is the best way to estimate your chances to avail of a loan.