If you’ve ever applied for a loan or a credit card in India, chances are you’d have heard this question, “What’s your Cibil Score?”

While Cibil Score may sound intimidating at first but it is a critical component of financial health that warrants regular attention.

A Cibil score should not be a source of concern, but rather a metric to understand and maintain proactively. Monitoring your credit score and understanding its impact are essential to maintain your financial eligibility.

Today,in this tech savvy world, the possibility to do a free Cibil score check is quite convenient, quick , totally online and absolutely free. You do not have to go to a bank, stand in a queue and speak to an agent for your credit score. 

Keeping a check on your Cibil score regularly makes you financially prepared, whether you are planning on making a big purchase or just want better control of your money.

In this guide we have tried to explain what a Cibil score is, why this score matters , how you can check your Cibil score online and for free and what you ought to do after you know what your score is.

What Is a Cibil Score?

A Cibil score is a three digit number ranging from  300 to 900. There are 4 credit bureaus in India namely TransUnion Cibil, Equifax, Experian and CRIF Highmark. Transunion Cibil is the most widely used credit bureau in India. The credit score is calculated on different parameters and is a symbol of : 

• Your loans & credit card history
• Repayment patterns
• Outstanding balances
• Credit utilisation
• Past defaults or delays

All the banks, NBFCs and other lenders in India have a vast dependency on Cibil scores and Cibil reports for assessing loans and credit card applications. Simply said, your Cibil score indicates to the lenders how risky you are as a borrower , and tells them how reliable you are as a borrower.

Why Does Cibil Score Matter So Much?

Cibil score is very important as it is used in:

• Loan Decisioning (approval or rejection)
• Interest rates offered to you
• Loan amount eligibility
• Credit card limits
• Speed of loan processing

A high score indicates financial discipline resulting in increased trustworthiness whereas  a low score suggests risk.Even a difference of 30-50 points can make a difference in what offers you get, the rate of interest you are charged and your tenure of the loan.That’s why it’s a good thing to keep track of your credit score by checking  it online, periodically.

What Is a Good Cibil Score?

While lending conditions varies across institution to institution, the following shall  provide a general understanding on how is  credit score typically interpreted:

750 and higher: Excellent

Approval with high chances, improved interest rates

700-749: Good

Approvals likely

650-699. Fair 

Limited Option , High Interest

Below 650: Poor

Approvals can be difficult

If your credit score is not where you were expecting it to be, don’t worry at all. This score is not permanent  and will change on the basis of your financial behaviour. What we mean here is that the more disciplined you are in your repayments it will move in the positive direction and vice versa.

Is It Possible to Check Your Credit Bureau Score-Cibil- Score For Free?

Absolutely.

Due to the tech advancement in the near past and the consumer friendly regulations, they have enabled us to check our credit score online without any hassle and effortlessly. The process is quick, convenient and guess what, absolutely free. 

The complete process to check your credit score online for free :

• Takes less than a minute
• Requires a minimum amount of personal information
• Does not affect your score
• Can be done multiple times
• Checking your own Cibil score is considered a soft inquiry which has no negative impact.

Does Checking Your Cibil Score downgrades the Credit score?

This is one of the most frequently asked mis-conceptions.

The answer is NO.

When you check your credit score by yourself , then the request is triggered as a soft inquiry. A Soft inquiry has no effect on your credit score. It’s when the lender checks your score upon your application for a loan or credit card, a hard inquiry is triggered which affects your credit score .

In short, you can go ahead and check your score every once in a while without worrying about your credit score getting negatively affected..

Step by Step process for How to Check Your Cibil Score online for free: 

Checking your Cibil score using a digital-first platform like CreditMitra is quick, convenient and user friendly.

Step 1: Enter Basic Details.You’ll be asked to provide:

• Full name (as per PAN)
• PAN card number
• Mobile number
• Date of birth

These details assist to attract back your credit details accurately.

Step 2: Verify with OTP

With an One-Time Password (OTP) sent to your registered mobile number we securely verify your identity as  this ensures that your credit information remains confidential at all times  and is accessible only to you.

Step 3: See your Cibil Score in Real Time.

Once verified, your credit score is displayed before you in seconds on your screen along with some of the best tips to help you understand what’s affecting your Cibil score.

That’s it.

No fees. No paperwork. No waiting.

What Information Do You Get Along with Your CIBIL Score?

A free credit score check usually gives you more than just a number. You also get access to your credit report which consists of your:

• Active and closed loans 
• Credit card information and limitations
• Repayment history
• Outstanding balances
• Patterns of Credit utilisation
• Recent credit enquiries

These insights  enable you to look at your performance on your tradelines and check where you have done well and where you have not not been disciplined in your payments. This can be helpful to know if your re-payments were incorrectly reported and you can approach the lenders via bureaus to get this rectified.

Checking Cibil Score: Who Should?

You must check your Cibil score regularly in a case where you are:

• Planning to apply for a personal loan, home loan or car loan,
• Using one or more credit card(s),
• Paying EMIs every month,
• Somebody who got turned down for credit previously,
• A first-time borrower who is building his or her credit history,
• Someone who has not checked his or her score in the last 6-12 months.

Even if you aren’t thinking about a loan just yet, being informed is the best position to be in.

How Often Should You Check Free Cibil Score?

Ideally you should check you Cibil score:

• Once every 3-6 months,
• Before applying for any kind of major credit,
• Once closing a loan or credit card.
• If you receive suspicious call/messages from lenders

Since it’s free and it doesn’t affect your score, it is encouraged to use some form of monitoring regularly.

Common Reasons for low Score in Cibil

If your score doesn’t turn out the way you thought your score would, here are some of the possible reasons:

• Late or Missed Payments
• Delayed EMIs or Credit card bills might severely affect your score.
• High Credit Utilisation
• Using much of your credit limit on a regular basis is an indicator of financial stress.
• Too Many Loan Applications
• Multiple Credit applications in a short time leads to a multiple hard inquiries.
• Settled Accounts or Written-Off Accounts
• Settlements have a negative impact on your creditworthiness in comparison to full repayments.
• No Credit History

If you have never taken out a loan before, you might have a low or no score on account of lack of data.

How to Improve your Fair Credit Score with Time

Once you know your score, work on good habits that you perform on a consistent basis:

• Pay all dues on time
• Keep credit utilisation low
• Avoid unnecessary loan applications
• Keep-up older credit accounts
• Keep track of your credit profile regularly

Improvement takes time, however, discipline always shows results.

Why Use CreditMitra for Free Cibil Score Check:

CreditMitra will suit individuals who wish to have clarity and control over their financial journey.

With CreditMitra, you get:

• Cibil score check oline for free
• Instant access at the least details
• Safe dealing with personal data
• Easy to understand explanations, not muddled and jargon
• A platform for making the right decisions about credit

Whether you are planning a loan or merely financially conscious, CreditMitra ensures that the process is transparent, and you do not experience any stress.

Final Thoughts

Your Cibil score is not just a number , it is a statement of how financially well you have behaved in the past. Doing a free credit score check regularly is a good way to stay prepared and avoid last moments hindrances  and prepare yourself to increase your chances of getting credit when you need it the most.

If you have not checked your Cibil score yet, now is the perfect time to check it. It’s quick ,convenient , free and empowering.

We can check your Credit  Score for free for you. Stay informed. Stay in control.