Are you someone who wants to avail a loan or a credit card? if yes, this reading is for you! Whether it’s a credit card or any sort of loan you are willing to apply, it would not be wrong to say that cibil/credit score is one such crucial factor that plays a key role here.
Yes, you read that right! Before offering the loan/credit card, lenders do check cibil score of an applicant so as to know the credit/repayment history. I know, now you must be wondering, why so? Well, let us tell you the reason for the same.
A cibil/credit score is nothing but a creditworthiness of an individual, showcasing the detailed credit history and repayment record. With the help of going through the Credit Information Report of an individual, lenders can easily evaluate the profile of an individual and can check whether he/she has any defaults or not.
Moreover, if a lender finds any sort of loan/credit card default in an individual’s credit history, it would be difficult for a borrower to avail the loan. In that case, it is not easy for a lender to trust an applicant as far as loan repayment is concerned. Before offering the loan amount to a borrower, the first thing which lenders do is to evaluate the profile of an individual by checking if he/she can easily repay the loan in the future or not. And, depending on the same, the actual loan amount eligibility is decided by the bank. Apart from considering the credit history, lenders also check the age, income, employment type and of course the credit/cibil score.
However, one thing that needs to be mentioned here is the fact that different banks have different eligibility norms. And, to avail a loan or a credit card, it is important for an applicant to meet the same. Suppose, if an applicant has fulfilled all the required eligibility norms but his/her credit score is poor or low, in such a scenario, it would be a tough call for a lender to offer the required loan amount/credit card to an applicant.
Yes, due to bad cibil score, banks/NBFCs can reject the loan/credit card application of a loan-seeker as in that case, it is difficult for the lenders to trust and offer the home loan, car loan, personal loan or a credit card.
So, in order to avoid your loan or credit card rejection, it would be a wide move that you should know your credit score before applying. And, when it comes to checking your credit score, you would be glad to know that individual can easily do the same online.
That’s Right! These days, there are various reliable sites are there that allow you to check your score anytime via PAN Card without any hassle. And, the most exciting part is that you don’t need to pay any sort of online fee for the same. It is absolutely free and a hassle-free process to check cibil score online in just 2 minutes.
If you are curious to know the steps, read the article below…
Step 1: To check credit score open the CIBIL page
Step 2:Enter your Name as per PAN Card, Date of Birth, Gender and PAN Card number
Step 3:Provide your contact details which include current residence address, email ID and mobile number
Step 4: Agree to the terms and condition
Step 5: Click on submit button
Now that you know how to check credit score, let’s just make you aware how your credit score is generated. And, for that take a look at the article below…
India’s first Credit Information Company known as Credit Information Bureau of India Limited (CIBIL) is one that maintains the records of all the credit- related transactions majorly of loans and credit cards. If we talk about the records, they are provided by banks and NBFCs on a monthly basis to the Credit Bureau. And, on the basis of using that information, the Credit Information Report (CIR) and a credit score is developed. Moreover, complex statistical analysis of the provided information credit score is calculated.