There are uncertain times in our lives when the need for cash becomes paramount. For instance, when you have to pay for a medical emergency, your wedding, or college fees. During such times, a personal loan is the best choice to meet your financial needs. However, to avail of an affordable interest rate and flexible loan tenure, you must maintain a healthy credit score.
In this article, we will cover what a credit score is, factors impacting it, and how to run a CIBIL check online for free in India.
Everything to know about a good CIBIL score
CIBIL stands for Credit Information Bureau India Limited, and it contains a three-digit number between 300 and 900. CIBIL is one of India’s leading credit information companies, and the score given by it is considered important by lenders. A credit score is the most crucial factor considered by lenders before providing an unsecured loan to borrowers.
Your CIBIL score would determine several aspects of your personal loan. For example, the loan amount and the interest rate you are eligible for are dependent on your credit score. It is essential to maintain a healthy credit score before applying for a personal loan. A score above 750 is considered a good credit score, and having a higher score means that lenders perceive you to have creditworthiness.
The higher your credit score, the greater your chances of having an upper hand while negotiating interest rates. A credit score close to 900 would warrant your approval with value-added features.
Here are different CIBIL score ranges and their impact on personal loan applications
- CIBIL score between 350 and 549
If you have a credit score within the said range, you are automatically considered inadequate by the lenders. Application for a personal loan with a score in this range usually gets rejected. If you need to apply for a loan, you must have a stable job, income, tax fillings, and bank balance.
- CIBIL score between 550 and 649
This range is considered an average or a fair credit score. Some lenders may offer you a personal loan, but you will have to incur a higher interest rate.
- CIBIL score between 650 and 749
Having a credit score above 650 is considered good. Lenders may offer you a personal loan, but you will not be able to avail of lower interest rates.
- CIBIL score between 750 and 900
It is the most favourable range for lenders. A CIBIL score in this range does not only assure you instant loan approval, but you will also benefit from value-added features.
Check your credit score online for free
As per the Reserve Bank of India’s instructions, credit information companies in India must provide each borrower’s credit history online. You can receive one credit rating score per year for free.
Follow the steps below to understand how to check your credit score online.
- Visit the CIBIL’s website and click on the Get Your CIBIL Score tab.
- If you are a first-time user, you need to create an account by entering your name, email address, and mobile number along with creating a username and password.
- Enter your personal information like your date of birth, address, PAN Card, or Aadhar Card number.
- Click on the Accept and Continue
- Verify your identity by entering the OTP sent to your registered mobile number or email address.
- You will then be directed to a new tab to confirm your enrollment.
- After completing your enrollment, visit the dashboard and view your credit report.
As you have created your account, going forward, you can directly log in with your username and password to view or download your credit report.
If you are looking for an unsecured loan, you can apply for instant personal loan and avail of a maximum loan amount, lower interest rates, and flexible loan tenure. Also, check your credit within two minutes on Fullerton India’s website.
Be aware of the factors like repayment history, numerous debates, and credit mix that can affect your credit score and jeopardize your plan to secure a maximum loan amount and a lower interest rate.