Lending companies in India refer to the credit score of a person, also known as the CIBIL score to check their creditworthiness. Moreover, it determines their eligibility for a home loan or a property loan. The interest rate of a loan is also dependent on credit score.

This is why loan borrowers must know their credit score if they plan on applying for a loan. Read on to find out how to check your CIBIL score for free. 

Checking credit scores online for free

Maintaining a high credit score of 750 or above is a good idea if an individual plans on taking a loan in the future. TransUnion CIBIL Limited is the credit bureau that provides a CIBIL score that reflects a person's credit history and credit health. 

This is why it is important to become a member of CIBIL by visiting their website before individuals can check their credit scores. 

Applicants can check their current CIBIL score online with the help of these steps-

Step 1: Log into the online portal of CIBIL.

Step 2: There is an option called ‘find my CIBIL score’, click on that. 

Step 3: Fill in the details, such as your name, date of birth, address, PAN, voter, Aadhaar details, and contact number.

Step 4: Accept and continue to receive an OTP on your number.

Step 5: Input the OTP on the portal and click on ‘continue’.

Step 6: After the completion of these steps, you can go to the dashboard to check your credit score details.

Moreover, many lending companies offer online tools for calculating CIBIL scores on their website. Individuals can use these for free to check their credit scores in India. 

Since a credit score is important for taking loans against property as well as home loans, people must ensure they maintain a high credit score. It also helps borrowers get competitive interest rates on their loans. 

Factors that affect credit scores

Here are certain factors that are crucial in determining an individual’s credit score-

  • Credit utilisation ratio

A high credit utilisation ratio can bring down a person’s credit score. This is because it suggests increasing debt and more chances of a person defaulting on their payments. To ensure this does not happen, it is advisable to only use 30% of one’s available credit limit.

  • Repayment history

A person must make timely repayments on their monthly bills, EMIs, credit card payments, etc. Delays in payments suggest that an individual is struggling to manage their finances. This brings down the CIBIL score significantly.

There are multiple ways a person can improve their credit scores to build a strong credit profile.

Tips to improve your credit score

When borrowers are aware of how to check their CIBIL scores online and the factors that affect them, they can follow these tips to maintain a strong score-

  1. Apply for new credit cards in moderation since applying for them frequently reflects poorly. This is because it shows the lender that the applicant is constantly seeking credit.
  2. Review your credit account and CIBIL score frequently to stay updated and avoid discrepancies. 
  3. Pay off debts and dues before the stipulated time to create a strong credit profile.

Many lending companies extend pre-approved home and property loan offers to eligible candidates. Borrowers with strong credit scores can check out these pre-approved offers since they streamline the loan application and disbursal process. They can do this by visiting the online portal of the lender and entering their name and other details. There are various reasons for low cibil score and every borrower must know how to improve and maintain their cibil.

Since there is more than one way to check your CIBIL score for free, borrowers must choose the process that suits them the best. Moreover, they must try to follow tips and suggestions to maintain a high credit score for getting a loan without any hassle.