Understanding your creditworthiness is a significant component of financial planning. Your CIBIL score is an essential factor in assessing your creditworthiness. It displays your spending habits and credit history, providing lenders with information about your capacity for timely loan repayment and responsible credit management. In this post, we’ll learn what a CIBIL score is, the factors that affect it and how to check your CIBIL score with your PAN number.
What is a CIBIL Score?
The CIBIL score is a 3-digit indicator of an individual’s creditworthiness. It ranges from 300 to 900, with a higher score reflecting responsible credit behaviour. Before offering credit facilities, lenders, including banks and financial institutions, check a person’s CIBIL score to determine their creditworthiness.
When assessing loan applications, lenders heavily rely on CIBIL scores. Your CIBIL score decides whether you are approved for a loan for a house, a car, a personal loan, or even a credit card. A good score increases your chances of getting credit and puts you in a better position to get flexible repayment terms and low-interest rates. A high CIBIL score allows you to avail better terms related to credit.
Key Factors Affecting Your CIBIL Score
- Payment History: Your payment history has the most impact on your CIBIL score. Payment delays, defaults, or settlements may have an adverse impact on your credit scores. Repay the loan amount on time to keep your credit score high.
- Outstanding Debt: Your creditworthiness is impacted by how much debt you have. High outstanding amounts could indicate financial stress, harming your CIBIL score. Aim to appropriately manage your debts and make quick payments on any outstanding amounts.
- Credit History Length: Lenders can evaluate your financial behaviour over a longer period if you have a more extended credit history. You should keep your old credit accounts active to show lenders your credit handling behaviour and get better loan deals and enhanced credit limits on credit cards.
- Credit Mix and New Credit: A diverse range of credit types shows you can manage a range of financial commitments. Furthermore, submitting too many credit applications simultaneously might raise red flags and lower your CIBIL score. In short, apply for a loan or credit card only when required after checking your eligibility.
- Credit Utilisation: Maintaining a low credit utilisation ratio demonstrates sound credit management. Avoid draining off your credit cards and aim to utilise your available credit limit wisely.
Accessing Your CIBIL Score with PAN
Wondering how to check your CIBIL score with your PAN number? You can check it online by following a few simple steps. Here’s how you can check.
- Registering on the Official CIBIL Website: Visit the official CIBIL website (www.cibil.com) to get started. Look for the option to create a CIBIL account. Click the registration link. Provide the necessary data, including your PAN number, contact information and personal details.
- Validating Your Identity: To guarantee the security of your personal information, CIBIL uses a strong authentication procedure. Additional information, such as your date of birth, registered address, and other papers, may be requested from you. To properly verify your identity, follow the instructions and provide precise information.
- Checking Your CIBIL Score: You can check your CIBIL score after completing the registration and identity authentication processes. Use the login details created during registration to access your CIBIL account. You can view your credit report and CIBIL score once logged in.
While you can get one credit report for free from CIBIL in a year, mobile apps like OneScore allow you to check your CIBIL score any number of times you want for free.
Your CIBIL score indicates how financially responsible you are, and it is crucial in accessing financial products in the future. Your ability to access financial possibilities, get better financial products, and create a path for long-term financial success depends on how actively you manage your creditworthiness. Your creditworthiness is significantly determined by your CIBIL score, which impacts lenders’ decisions to offer you credit or loans. By checking your CIBIL score with your PAN number, you can find important information about your credit history and take proactive measures to strengthen your financial situation.