Check Credit Score Online Before Applying for a Loan or Credit Card

The credit score is a result of servicing loan or credit card dues for a minimum of 6 months. The magnitude of the score represents your creditworthiness for the fresh credits you apply for. The score varies based on the repayment you make from time to time. A good score is elementary to you getting a fresh loan or credit card application approved. You can thus check your credit score online before applying to prevent any frustration that may creep in the event of application rejection due to a poor score. The score can be checked on the website of many credit bureaus such as CIBIL.

How to Check CIBIL Score Online?

The steps to check the CIBIL score online are explained below for you to take note of.

• Visit the official website of CIBIL
• Create your account by mentioning your name, email address, mobile number, identification number with respect to the identity type you choose
• Create a password conforming to the requirements laid down in terms of alphabets, numeric and special characters
• Click on ‘Accept and Continue’
• Afterward, you will be given a One-time Password (OTP) to get your details verified
• Subsequently, you will get the credit score report free of cost

The report would include details such as the loan or credit card outstanding dues, payment schedule, the number of credit enquiries made, etc.

However, this service remains free once a year only. If you check more than once a year, the applicable charges will be levied.

What is a Good CIBIL Score?

The meaning of good CIBIL score differs from one credit to another. Personal loans, which are largely offered on an unsecured basis, would ideally require an individual to have a score of 750 and above for approval. Even if the score remains within 700-750, one can get the loan. The same yardstick is applied to credit cards which are also unsecured as a lending product. Home loans, which are secured by the equitable or registered mortgage of the property to be bought, can be granted even as the CIBIL score is around 600-650. In the case of a car loan, the vehicle to be purchased gets hypothecated. As the car is a depreciating asset and loses value over time, lenders like to see your CIBIL score to be around 750.

Is Your CIBIL Score Below the Desired Level? Follow as Recommended Below

After knowing what a good CIBIL score is, you must check the same on the website of the noted credit bureau. If the score comes below the standard requirement, you better check the reasons for the same in the credit report. Then only, you can proceed and improve the score. You can thus follow a few tips discussed below to resurrect your credit health.

Pay Your Dues on Time - Failing to make loan or credit card payments on time can be the biggest reason for a poor score. If that’s the case, start paying on time. You must save more and cut down on unnecessary spends to be left with the amount to repay.

Don’t Apply for Too Many Credits within Shorter Intervals - When you apply for a loan or credit card, lenders make a hard credit check that goes on to lower your score. The score lowers more when you apply for different credits without maintaining much of a gap between them.

Excessive Credit Utilization Ratio - Credit limit represents the point up to which one can shop with a credit card. If you are utilizing more than 50%-60% of the credit limit, chances are that the credit bureau may deduct some points. The ideal credit utilization ratio is around 30%-40%.