Your CIBIL score plays a vital role in determining your financial health. Understanding the importance of the CIBIL score check is essential, especially when applying for a loan or credit card. But how do you check your CIBIL score, and what does this number actually mean? In this article, we will discuss the steps you need to follow to check your CIBIL score, explain the ranges of your CIBIL score, and provide the most effective tips for maintaining a strong CIBIL score. So, read on! 

Introduction to CIBIL Score 

A CIBIL Score is a three-digit numeral that is a reflection of your credit history. It ranges between 300 to 900, with 300 being the poorest and 900 being the best possible score. Your CIBIL score is calculated by one of India’s four major credit bureaus – the Credit Information Bureau (India) Limited (CIBIL). Lenders (loan and credit cards) will be able to assess your creditworthiness through a CIBIL report check.

 

Follow These Steps to Check Your CIBIL Score Seamlessly 

If you are wondering how you can do an online credit score check, here are the simple steps you need to follow: 

1. Open the official website of CIBIL by clicking here.
2. If you don’t already have an account, you can create one by submitting important details like your name and contact information. 
3. Next, click on the “Get Free CIBIL Score & Report” button. 
4. Enter your details in the next window, including your PAN card number. Make sure that all these details are filled out correctly. 
5. In a few moments, you will be able to check your CIBIL score successfully. 

You can also visit the official website of Hero FinCorp to check your CIBIL score for FREE!

 

How is the CIBIL Score Calculated?

Now that you are aware of how a CIBIL check can be done, it is important that you understand how it is calculated. Let us walk you through the different parameters that contribute to your CIBIL score: 

 

• Payment History – Your payment history makes up 35% of your CIBIL score calculation. Whether they are EMIs or credit card bills, it is essential that you pay them on time. Late payments will affect your CIBIL score significantly. 

 

• Credit Utilisation – Credit utilisation can be calculated by dividing your current credit card balances by the total available credit limit. For a good CIBIL score, it is important that your credit utilisation is below 30%. This indicates that you are not over-dependent on credit for your expenses. 

 

• Duration of Credit History – The length of your credit history contributes 15% to your CIBIL score. So, when you do a CIBIL score check online, your credit duration will also be assessed. This provides a clearer view of your spending and repayment patterns. 

 

• Credit Diversity – For a good CIBIL score, it is also important that you use a diverse range of credit kinds. These include secured loans and unsecured loans. Home loans and auto loans are secured loans, whereas credit cards and personal loans are unsecured loans. Your credit mix makes up 10% of the CIBIL score.  

 

• Applications – Repetitive applications for credit cards and loans are known to harm your credit score. Your recent behaviours with credit will contribute 10% to your score. How? When you apply multiple times, a hard enquiry may be triggered. Furthermore, doing this in a short time span may indicate that you are under immense financial strain. 

 

Know My Credit Score – What is a Good CIBIL Score?

Knowing your CIBIL score will allow you to secure better loans and ensure a smooth financial journey for you. But how do you know if your CIBIL score is good or not? Listed below are the score ranges and what they mean:

• 300 to 550 (Poor) – A CIBIL score between 300 and 550 is considered poor and indicates a damaged credit history. Getting a loan with a score below 550 is challenging. If you are still able to get it, the interest rates will be dramatically high.

 

• 551 to 650 (Fair) – When you check your CIBIL score online, and a resultant score is a number between 551 and 650, it is considered in the “Fair” range. While getting loans will not be as difficult, the terms and the interest may not be as favourable as those offered to individuals with a better credit score. 

 

• 651 to 700 (Average) – This score range is slightly better, which means that the interest rates will also be slightly higher when you apply for a loan. 

 

• 701 to 750 (Good) – Usually, it is said that any CIBIL score above 700 is a good one. When you do an online credit score check, and it falls between 701 and 750, it reflects on your sense of responsibility towards your finances. 

 

• 751 to 900 (Excellent) – This is the CIBIL score range that anyone should be aiming at. An excellent score means that you will get a loan from leading organisations at the best interest rates and terms. This score is an indication of your devotion to managing your finances, loans, and credits in an educated and consistent manner. 

 

Check My CIBIL Score – Why You Must Do It Regularly?

There are numerous reasons why you must do a CIBIL score check regularly. These include: 

 

• To analyse how your actions affect your credit score. 
• To ensure that all the details in your CIBIL report are accurate. 
• To take the required actions if you find any errors in the report. 
• To have better control of your financial health. 
• To understand your negotiation possibilities before applying for a loan. 

 

Exploring the Top Advantages of Maintaining an Excellent CIBIL Score

When you maintain a high CIBIL Score, i.e., between 751 and 900, you will be able to avail yourself of the benefits listed below: 

 

• Your loans will be approved quickly. 
• You will enjoy lower interest rates on any loan that you get.
• Your lenders will be impressed with your creditworthiness and will be willing to lend money to you. 
• The repayment terms of your loan will also be better. 
• You will be eligible for premium credit cards and get a higher limit. 
• You will also be able to negotiate the terms and interest rates better. 
• Your approval limits for a loan will also be higher when you have a high CIBIL score. 
• Lastly, you will pass employment screening seamlessly. Nowadays, many employers conduct a CIBIL report check before hiring you. 

 

Some Valuable Tips That Will Help to Boost Your CIBIL Score 

Imagine you check your CIBIL score and observe a decline in the value. Now, you must be wondering how you can maintain a healthy CIBIL score, right? Don’t worry! Here are some tips that will help you: 

 

1. Don’t Delay Payments – Whether it is a loan instalment or a credit card bill, any repayment should not be delayed. If this happens, your CIBIL score will be adversely affected. 

 

1. Reduce Reliability on Credit – Keep your credit utilisation below 30% to maintain a high CIBIL score. When you use too much of your credit, it appears as if you are credit-hungry or in financial strain. 

 

1. Check Report for Errors – It is also essential that you do a CIBIL score check online and check the report of any discrepancies. If you see any incorrect or outdated information, make sure to file a dispute. 

 

1. Maintain Diversity: You must also maintain a healthy credit mix to ensure that your CIBIL score goes up. When this happens, the banks (or lenders) will not see you as a high-risk borrower. 

 

1. Don’t Discontinue or Close Old Accounts: When you have a credit card that you have been using for many years, it reflects on your positive relationship with that bank. This boosts your CIBIL score significantly. 

 

1. Don’t Apply Multiple Times in a Short Duration: When you apply for a credit card or loan too often, it may lead to a hard enquiry. If you check your CIBIL score after this, you will notice a fall in it. 

 

To Conclude 

Your credit score is the first thing your lender will see whenever you are applying for a loan or credit. Hence, it is important to take the right steps to achieve and maintain an excellent CIBIL score. To avoid any problems due to errors, it is also essential that you keep doing a CIBIL check periodically. 

If you are looking for the most beneficial and trustworthy financing solutions, choose Hero FinCorp as a partner in your journey. Our experts will work with you to provide you with the most valuable recommendations. 

Avail of the Best Loan and Financial Services: Partner With Hero FinCorp Today! 

 

FAQs

• Can I have a credit score of 900?

Yes. It is possible to achieve the highest credit score possible. However, this will be a long journey and should be a consistent one. For this, your debt-to-income ratio should be low, and you should have a spotless record of timely repayments. 

• What details will I need to check my credit score online?

For a CIBIL score check online, you will need to provide your phone number, PAN card number, and email ID (where you will receive your report). You can simply do this on Hero FinCorp’s official website. 

• What should my credit score be if I need a business loan?

Before applying for a business loan, it is best if you conduct a CIBIL score check to ensure that your score is at least 700. 

• Can I get a loan if I have a poor credit score?

Yes. After trying a lot, you will get a loan from a non-bank financial company. Nevertheless, the interest rate tends to be extremely high. That is why it is recommended that you maintain a healthy CIBIL score. 

• How can I improve my CIBIL score?

To improve your CIBIL score, make sure to have a credit mix, make all repayments before the due date, do a CIBIL score check timely and raise disputes for inaccuracies, don’t have a large unsecured credit, and don’t apply for loans or credit cards too frequently.