Steps to Check Credit Score for Free Before Availing a Personal Loan
New Delhi | Jagran Brand Desk: Your credit score is usually a deciding factor for any loan approval. This especially stands true in the case of a personal loan. Since it is a collateral-free loan, your CIBIL score is an essential part of personal loan eligibility criteria. Lenders ascertain your creditworthiness and loan repayment behaviour via this score, as well as your credit report, on which this score is based.
Applying for a loan with a poor credit score can result in rejection of your loan application and further reduce your credit score. Therefore, if you are planning to apply for a personal loan in the near future, check your credit score beforehand. You can do so by visiting the CIBIL website, one of the most popular credit rating agencies in the country or check your credit score instantly on certain lenders’ websites. Read on to know the ways to check your credit score easily.
How to check your credit score for free?
You can check your credit score for free once a year from CIBIL by following the steps given below.
- Log in to the CIBIL website and click on the tab ‘Get Your Free CIBIL Score & Report’
- Now, create an account by entering your personal details, such as your name, email ID, ID proof (such as PAN card or Aadhaar), PIN code and phone number.
- Once you have accurately filled these fields, click on the ‘Accept & continue’ tab.
- You will receive an OTP on your registered mobile number. Enter the OTP and complete the verification process.
- Post successful verification, you will be directed to a new window, confirming your enrolment. Now, click on the ‘Go to Dashboard’ option to view your credit score.
- You will be directed to a new page, where you can view your credit report.
Going forward, you can directly login using your credentials to view your credit score.
If you already have an account with CIBIL, you can directly login, click on ‘My Account’ and go to the tab, ‘Get your Free Report’.
Apart from the CIBIL website, you can check your CIBIL score without login in three simple steps on the Bajaj Finserv website.
- Step 1: Enter your personal details as per your ID proofs. These include your name, PAN number, city and employment type.
- Step 2: Complete verification with the OTP sent to your phone number and email.
- · Step 3: Get your CIBIL score and credit report.
Checking your score in this way doesn’t impact your CIBIL score and also gives you access to personalised loan deals.
What is a good CIBIL score?
Your CIBIL score is a three-digit number between 300 and 900 that summarises your creditworthiness. Any score above 750 is considered a good credit score, as it proves that you are a responsible borrower. The closer your credit score is to 900, the better are your chances of qualifying for a loan and getting instant approval. Below are the different CIBIL score ranges and what they mean.
- NA/NH: This means that you have no credit history, thereby no CIBIL score.
- 350–549: A credit score in this range is considered to be inadequate. Applying for a loan with a score in this range usually warrants rejection.
- 550–649: CIBIL score in this range is considered fair, but only a few lenders may offer you a loan and usually at high-interest rates.
- 650–749: This is a good CIBIL score. Lenders may consider your loan application, but you are still not assured a low interest personal loan or negotiation edge.
- 750–900: A CIBIL score in this range not only assures you instant approval, but also value-added loan deals.
What are the factors that affect your CIBIL score?
- Repayment history: Your past repayment behaviour impacts your credit report. Late payments and defaulting on loans decrease your CIBIL score.
- Numerous debts: Multiple credit card debts or loans contribute to your debt burden, lowering your score.
- Credit mix: A balance between the different types of loans increases your CIBIL score.
- Credit utilisation: Relying too much on credit in comparison with your income negatively impacts your CIBIL score.
The higher your credit score, the better are your chances of getting a low interest personal loan with value-added features. With a credit score of over 750, you can apply for a Bajaj Finserv Personal Loan to access up to Rs.25 lakh at attractive interest rates. You can repay this over a flexible tenor of up to 60 months. Moreover, you can avail of the Flexi facility to have unfettered access to the loan amount as and when you need it and pay interest only on what you actually utilise.
Additionally, you can reduce your EMI payments by up to 45%* by choosing to pay interest-only EMIs. With its simple personal loan eligibility criteria and minimal documentation, enjoy a hassle-free application process with approval in 5 minutes and access to loan amount within 24 hours. To expedite the process, do not forget to check your pre-approved offer from Bajaj Finserv today!
(Note: The article has been written by Brand Desk)
Posted By: Aalok Sensharma