Ways to check your CIBIL score
A CIBIL score, or credit score, is an important factor in establishing your creditworthiness. This score, which runs between 300 and 900, is a numerical reflection of your credit history and repayment habits. A better CIBIL score not only improves your ability to get loans and credit cards but also frequently results in more advantageous terms, such as reduced interest rates and bigger credit limits. A solid CIBIL score is especially useful when making long-term financial commitments, such as applying for the finest ULIP plans.
Ways to check your CIBIL Score
Official CIBIL website
Go to the TransUnion CIBIL official website and choose between a one-off report or periodic access to your CIBIL score.
Bank websites
Most of the banks provide the facility of free CIBIL score checks for their customers through their websites as add-on banking services.
Credit card statements
It is also worth mentioning that some banks provide your CIBIL score along with your monthly credit card statement as a value-added service.
Financial service websites
Many third-party financial websites provide free CIBIL score check services to customers as a marketing strategy to attract loan or credit card seekers.
Mobile apps
Use mobile apps launched by financial services that give you real-time information on your CIBIL score and credit report.
Loan agents and advisors
It would help to consult with loan agents or financial advisors because they often have tools to check such scores for potential clients and can show your CIBIL score.
Online marketplaces
Some of the financial marketplaces that compare different financial products may provide free checks of your CIBIL score for better product recommendations.
Home loan & credit card pre-approvals
When you apply for pre-approval offers, you can check your CIBIL score, which usually does not affect your score.
Consumer forums
Visit consumer forums where people discuss how to check CIBIL score and also special offers that come with free CIBIL check.
Credit improvement services
Some of the services that claim to help you enhance your credit score may include credit reports containing your CIBIL score as a part of the report.
Tips for an improved CIBIL Score of 750 and above
Pay bills on time
It is important to pay all your credit card bills, utility bills and other loan EMIs on time. They are reported to the credit bureau and can hurt the CIBIL score. One way of avoiding this is by arranging with your bank to make the payment on your behalf as soon as the due date arrives.
Maintain a low credit utilisation
The fact that the credit utilisation ratio should not exceed 30% of the total credit limit in all the cards and credit lines shows that one is not a compulsive user of credit, which boosts the credit score. High utilisation can be regarded as an indication of financial difficulties and risk for lenders.
Limit credit enquiries
Every time you apply for credit, potential lenders make a hard inquiry to review your credit score which may slightly affect your score. Many questions can appear, which indicate financial insecurity. New credit should be taken sparingly and only when it is necessary to do so.
Have a good credit mix
This means that having a mixture of secured loans such as home or auto loans and unsecured loans such as credit cards, shows lenders that you are capable of handling different types of loans. This diversity can work in your favour when it comes to credit scoring.
Increase credit duration
A long credit history and strong repayment history are indicative of creditworthiness. Maintain old credit accounts and use them from time to time with small transactions that are promptly paid to help lengthen the credit history.
Monitor joint accounts regularly
Joint accounts can impact your credit. Make sure that all the involved parties do not commit any wrongdoings since any one of them will affect the credit scores of all the account holders.
Rectify mistakes in your credit report
Regularly obtain your CIBIL report to check for any inaccuracies or fraudulent activities. If discrepancies are found, report them immediately to CIBIL through their dispute resolution mechanism. Understanding how to get your CIBIL score can help you monitor your credit health effectively.
Avoid closing old credit cards
Having old credit accounts increases your credit history length, a factor that works in your favour. Discharging these accounts may reduce your credit history and can lower your credit score. If the cards do not attract annual fees, it is advisable to keep the cards active.
Settle outstanding debts
Clearing debts instead of shifting them from one credit card to the other demonstrates to lenders that you are willing and able to meet your obligations and thus a good credit score.
Diversify your debt
Instead of having all your debt in a single form of financial instrument, spread across different forms of credit. This strategy shows that you are familiar with different credit formats and minimizes the risk aspect that is associated with your character.
Consolidate loans and debts
If it becomes difficult to manage several debts, one can borrow a single loan at a lower rate of interest than several debts. This can lower your monthly cost and make your finances more manageable, which can help with payments and maybe even credit rating.
Avoid minimum payments
Paying over the minimum amount on your credit cards shows that you are capable of handling your credit properly and thus boosts your credit score. This also helps to lower your overall interest expense over the life of the loan.
Negotiate higher credit limits
If you have been paying your credit bills on time and have a good credit history, then you might be allowed to request higher credit limits. Higher limits, if not fully utilised, reduce your overall credit utilisation ratio, which is good for your credit score.
Use a calendar for due dates
To ensure that you do not miss out on your payments, you should use a calendar whereby all your due dates are indicated. This basic organisational tool will ensure that all payments are made on time, which is important to have a good credit standing.
Educate yourself about credit
The more one understands credit and its role, effects, and regulation, the more effectively he or she can manage personal finances. There exists a lot of information on the internet regarding credit scores and how they influence the chances of getting the best ULIP plans.
The value of maintaining a good CIBIL score
A solid CIBIL score is essential for any financial portfolio, not just for acquiring loans and credit cards, but also for securing favourable conditions on financial products such as the top ULIP schemes. A good CIBIL score indicates financial stability and accountability, making you an appealing prospect to lenders and insurers alike. Maintaining a score of 750 or above positions you to take advantage of the finest chances in the financial sector, ensuring that you can easily accomplish both your current and long-term financial goals.
