From your occupation, earnings, and work experience to your age, there are many things that credit card and loan providers in India take into account before approving or rejecting your application. While these factors are very essential, too, your CIBIL score is possibly the most significant.
Even if you fulfill all the other eligibility criteria of a bank, it is very much feasible for your loan or credit card application to be discarded if you lack a good credit score. But what is this CIBIL score? Why is it so significant for every loan seeker?
If you plan to apply for a loan or credit card on a primary level, here are some essential details that you must know while checking CIBIL score with PAN card.
What is the CIBIL Score?
CIBIL, or The Credit Information Bureau (India) Limited, is a credit information repository. Banks and credit card providers are also its members. These members provide the account information of their credit card and loan customers with CIBIL.
With the help of these details, the bureau works out a three-digit numeric analysis of a person’s credit history. This score varies between 300 and 900.
Importance of CIBIL Score
Your credit history is taken into account when calculating your CIBIL score. CIBIL uses its proprietary algorithm for this assessment. Moreover, the most significant component of this assessment is how you have weighted credit, for example, loans and credit card bills, in the previous times.
The CIBIL score is essential as it lets banks offer loans and credit cards only to individuals with a satisfactory credit history. Giving credit to somebody with an effective credit score helps them make sure that the credit is provided to a person who deals with credit responsibly.
This means that they carry a reduced credit risk compared to those who provide loans to somebody who has a low credit history and might not pay back the loan on time.
Steps to Check Cibil Score with PAN Card
Follow the steps discussed below to check CIBIL score with PAN card –
1. Visit the official website of CIBIL.
2. Click on the top right button that says ‘Get Your Credit Score’ or go to the Credit Score page directly.
3. Select a subscription method, if possible.
4. Enter your PAN Card number.
5. Enter your e-mail id.
6. Enter your Date of Birth.
7. Choose the Gender.
8. Feed the captcha code.
9. Accept the terms and conditions.
10. Click the button ‘Proceed to Payment’.
If you had checked CIBIL score with PAN card previously, you could employ your e-mail ID and password to go through the existing details. If you are verifying the credit details for the first time, the website will take you to the payment page. Once you are done with the payment, you can select the mode of delivery of the report and score. You can get a copy of the report delivered to your address by postal mail, or you can select to receive a copy by email.
If you do not have a PAN number, you can employ your basic personal information such as Name, DOB, ID proof, Address, and contact number to check your CIBIL score.
How to Improve Your Cibil Score?
When you apply for a loan or credit card, the provider will do a score check before approving or rejecting your application. Some of the finest ways that can help you improve your CIBIL score are as follows:
1. Be Acquainted with Repayments
Nothing can harm your credit score more than late payments and outstanding credit. If you utilize credit cards or have taken a loan, make sure that you pay the credit card bills and EMIs of the loan on time.
Rather than lower credit scores, delayed payments also bring in penalties. Fix reminders if you require them to never miss any due dates.
2. Borrow only what you can repay
One of the best methods to enhance your CIBIL score is to obtain only what you can pay back. Applying for a loan is now simpler than ever. But while loans are now simply available, you should not at all borrow more than you require. The more the borrowed amount is, the higher the EMI will be, and the higher the possibility of missing payments will be.
Also, when taking a loan, ensure you choose the loan tenure and EMI very cautiously to make sure that you can simply pay the monthly EMIs.
3. Use your Credit Card with Caution
Credit cards are potential financial tools, but many people use them wrongly. While credit cards remove the need for you to make a payment when purchasing something, you will finally need to pay for it. So, it is better only to employ a credit card when you actually require it to.
Also, try to pay credit card bills completely apart from only making the minimum payment. The balance brings in interest, which can be rather high.
4. Deal with Loan or Credit Card Rejections Actively
If you are searching for ways to improve your rating, you must also deal with a loan or credit card rejection with attention. While CIBIL only keeps your credit details, banks and credit card providers can check how many times different loan and credit card providers have gone through your report.
Many applications within a short period show a credit-hungry nature and can impact your creditworthiness. So, when you apply for a new loan or credit card, ensure you initially check the eligibility needs of the provider. Be calm if your application is rejected, and ignore many applications within a short period.
5. Verify Your CIBIL Report
While the possibilities are rare, it is feasible for your CIBIL report to have inaccuracies. For example, your bank might have failed to tell CIBIL that you have recently fulfilled a loan payment or reimbursed the credit card bills in full amount.
Final Words
A good CIBIL score not only makes you more trustworthy but also makes your application for a loan and credit card get processed quickly. Furthermore, it is also feasible to get the best deal from a bank if you have a notable score.
Now that you understand how to check cibil score with PAN card and improve it, enjoy the various benefits linked with a higher credit score.