Have you ever tried to avail a personal loan or a home loan? If yes, then you may have an idea about the importance of the CIBIL score.
CIBIL score is one of the vital eligibility parameters checked by the lenders while processing your loan request.
Its importance further goes up when you are applying for an unsecured loan like a personal loan. It is because it is what determines your creditworthiness as no collateral is needed for it.
If you want to check CIBIL score without login and know your free CIBIL score, then you can read this post!
What is a credit score?
A credit score is a 3 digit score ranging between 300 and 900. It is what determines your creditworthiness. If you pay your ongoing EMIs and credit card bills on time, then your credit score will be higher. If not, then it will be lower. If your credit score is 750 or more, then you can get the loan approval at a lower rate.
How do you check your credit score for free?
You can check CIBIL score without login. Yes, that’s easy if you can follow these below steps:
- You will need to land on the website of the CIBIL.
- Once on the website, you will need to provide your vital details such as name, email address, contact number and then click on the ‘continue’ button.
- You will also need to provide some extra details, such as the PAN Card. You need to ensure to enter your correct PAN Card number to proceed ahead.
- You will then need to answer all questions related to your credit cards and loans. Based on these details, your CIBIL score will be calculated. This will also lead to generating your credit report accordingly.
Here is how you can improve your credit score easily
- Pay off your loan and other EMIs on time
The first thing is paying off your loan and other EMIs on time. If you have many ongoing EMIs to settle in the month, then you need to ensure to pay all on time. If not, then your CIBIL score will be affected. And you will have issues in getting your next loan approved.
- Maintain a mix of credits
Another method to improve your CIBIL score is by maintaining a mix of credits such as secured and unsecured. If you continue to avail only one type of credit, then your credit score will take a beating. Thus, if you can, then you should maintain a mix of credits such as personal loans, credit cards, home loans and more. You can also go for the CIBIL score correction if there are any errors in it. Yes, doing that can also help you enhance your CIBIL score. Thus, never forget to read CIBIL scores frequently.
- Repay the ongoing loans over a longer tenure
If you are able to repay the ongoing loans over a longer tenure, then you can improve your credit score. It can be done as when you stretch your loan over a longer tenure, and then you will be able to pay lower EMIs. With EMIs being lower, then you will find no issues in making the payment on time. Therefore, the timely payment of the EMIs will mean your CIBIL score being healthy. In turn, it can help you get the approval for the next loan at a lower rate.
By following these tips, you can improve your credit score and also check CIBIL score free of cost.