Learn How to Check Your CIBIL Score

The creditworthiness of an individual or a firm to borrow money from financial institutions in the form of a loan or get a credit card is determined by CIBIL score. The higher the CIBIL score, the better are the chances of the approval of the loan or credit card application.

One can check free CIBIL score with the help of the official platform or the platforms offered by other financial institutions. The CIBIL score check by PAN card is the most common way to find the score on the platforms.

So, let us look at the multiple ways to check free CIBIL score. Also, let us understand the various tranches of the CIBIL score.

Understanding CIBIL Score Tranches

The CIBIL score is one of the key indicators used by Indian financial institutions to determine a person’s creditworthiness. The CIBIL score is a three-digit number that runs from 300 to 900 and is calculated by the TransUnion CIBIL.

The significant factors that impact the CIBIL score include the individual’s income, the repayment history, existing debts, any kind of default or lapses, and the credit mix. The CIBIL score check by PAN card is categorized into four different tranches that determine the potential for the loan or credit card approval. They are:

  • Tranche 1: 750-900

It is considered to be the best score. One can get the loans or credit cards approved quickly with this score. It means that the person has a perfect credit history free from any kind of delays or lapses. The interest rates offered are the least with better amounts and tenure. 

  • Tranche 2: 650-749

This tranche is one where the individual is one desirable candidate for the loans and credit cards. Getting a secured loan is more convenient than that of unsecured loans. The rate might be comparatively high with low tenure and amount, yet one can be assured of quick approval. 

  • Tranche 3: 560-649

It is a tranche where the applicant is seen as a new entrant. The rate of interest will be very high with comparatively low tenure approved for the loan. The score reveals the potential rejections that an applicant might have faced in the past to a certain extent. In the case of a considerable amount of loans, the chances of rejections are high here.

  • Tranche 4: 300-559

It is the beginner’s score where the lenders avoid processing the application due to the high risk of default in the future. At this particular tranche, the chances of approval are negligible, so it is essential to make significant credit improvements before application. 

Learn To Check CIBIL Score

To check the free CIBIL score, the best way is to visit the official CIBIL platform and follow the steps to reach the score. The main steps are:

  1. A ‘Get Yours Now’ button will appear on the screen. To access the new page where you may enter the CIBIL information, click the button.
  2. Fill in your name, email address, contact information, PAN number, date of birth, and other essential information on the page. The CIBIL score check by PAN card is followed here.
  3. Accept the terms and conditions listed at the bottom of the page.
  4. On the screen, there will be an opportunity to register for the paid service. Accept it if you want to register, or click ‘No Thanks’ if you don’t want to.
  5. Enter the OTP in space received on the registered mobile number.
  6. It will show your score on the dashboard.

The second and another prominent way to check free CIBIL score is to use the service offered by one of the leading NBFCs such as Bajaj Finserv. The direct option available on the platforms requires the basic details with the PAN card to access the CIBIL score.

Before applying for any loan like home loan, personal loan, etc, it is vital to check the free CIBIL score as it will improve the chances of application approval. As rejections can have a negative impact on the CIBIL report, hence ensure to manage the credit seamlessly. 

Following simple steps like managing debts, paying dues on time, avoiding overuse, and encouraging a better credit mix can help improve the credit score. Stick to the simple basic rules of improvement and use CIBIL score check by PAN card to see the progress. Enjoy better financial management and more significant savings with a high CIBIL score.