Your credit score or CIBIL score is like your financial report card. It is a representation of your repayment record. In India, the CIBIL score is available in the range of 300 and 900.
When it comes to the ideal credit score for personal loans, 750 or above is considered good.
The higher it is, the better your chances of getting loan approval at a lower rate. In turn, it may help you save big in the form of reduced EMIs.
Thus, before applying for a personal loan or any other debt, it is vital to check your credit score.
Nowadays, it is easier to check your free credit score online. Let’s know more in this post!
Here’s how you can check free credit score
You can check TransUnion credit score easily by following a few simple steps. All that you need to have is your PAN Card ready. Let’s take a look:
- Open any third-party website offering the facility to check free credit scores online.
- Enter your name as per your PAN Card.
- Provide your correct date of birth.
- Select your gender.
- Enter your correct PAN Card number.
- Provide additional details such as your email address, mobile number, and residential address.
- Agree to the terms and conditions of the third-party website offering you the service.
- Click on the ‘submit’ button.
After you click on the ‘submit’ button, you will be able to check your free credit score quickly.
What impacts your credit score?
A credit score is a 3-digit number ranging from 300 and 900. Your credit score gets calculated, keeping in mind several factors.
They are your credit type, payment history, credit age, and credit utilization. Here’s a quick look at the factors and their impact on your CIBIL score.
- Payment history – High impact
Your payment history is one of the key factors affecting your credit score. If you have managed to pay your loan EMIs and other bills on time, it shows that you are a responsible borrower. It is also an indication that you are at a lower risk of default. Such applicants are more than likely to get personal loan approval at a lower rate.
- Credit utilisation ratio – High impact
Your CIBIL score also depends on how you are able to utilize your credit. The credit utilization ratio showcases the total number of credits you have used with the credit limit available to you. As per financial experts, loan applicants should only use 30-40% of their credit limit to keep a robust CIBIL score.
- Age of the credit – Medium impact
To get an idea of your creditworthiness, the age of your credit is also taken into consideration while computing your CIBIL score. If you have been managing your credit in a responsible manner, it may affect your CIBIL score.
- Total accounts – Low impact
The maintaining of mixed credits such as secured and unsecured credit also affects your credit score. You should aim to maintain a mix of credits such as credit cards, home loans, personal loans, auto loans, and more.
Now that you are aware of how to check free credit scores, you can do that easily online. If you wish to apply for a personal loan with low credit score, you can do that by convincing your lenders that you can manage EMI payments. Applying with a co-applicant whose CIBIL score is higher may also help.
Bajaj Finserv offers pre-approved offers on personal loans, home loans, and more. It is to make loan processing faster and hassle-free.
You can share your basic details such as your name and mobile number to check your pre-approved loan offers today.
