Are you planning to secure a loan or a credit card? Then the first thing that you would be required to do is to perform CIBIL score check free. Acting as the base for the creditworthiness of the individual or firm, the CIBIL score offers the financial institutions insight into an individual's financial and credit history.
Though there are multiple ways to perform the CIBIL score check, it is important to understand the CIBIL score's meaning. So let us have a brief idea about the ways of CIBIL score check free and the CIBIL score meaning.
Meaning of CIBIL Score
A credit score is a three-digit number that ranges from 300 to 900. A score of 900 is the maximum that a person can get. All lenders use credit scores to determine whether or not to grant a loan or a credit card to a potential borrower.
The higher the credit score, the more creditworthy an individual is, and the more likely are the chances of being approved for a loan or credit card with lower interest rates. Every month, credit bureaus update an individual's credit score and report.
Before granting a loan or credit card, banks, NBFCs, and credit card issuers often request an individual's credit score from a credit bureau. Once the CIBIL score meaning is clear, the next big question is to understand how CIBIL score check free.
Ways To Check CIBIL Score Without Login
To get a better knowledge of the CIBIL score, it is advisable to check the score periodically. With the help of various options to perform CIBIL score check free, the individual can get insights about the score and potential areas of improvement.
Though all the financial institutions use the CIBIL score, there are three broad smart ways to check the CIBIL score. They are:
- Connect with official bureau
The most prominent and best way to check the CIBIL score for free is to visit the official websites for the CIBIL score check. One can visit any of the four credit bureaus in India and get the CIBIL score check free. But this process has one major drawback: the individual can access the score once a year only.
- Take the assistance of financial institutions.
Another way through which the individual can get the CIBIL score is by asking the financial institutions. Based on the value-added services offered, the banks and NBFCs offer the facility to the individuals to check their CIBIL score for free. It is by far the most convenient and easy method to check the scores.
- Third-party Fintech portals
With the changing time, there are now various fintech portals and platforms available. These platforms allow the visitors to access the details of financial instruments, compare rates, and products, and various other services. Additionally, these platforms allow the visitors to have CIBIL score check free.
Once you have the CIBIL score check free facility covered, the next step is to know the ways to improve the CIBIL score is required.
Smart Tips to Improve CIBIL Score
Understanding the CIBIL score meaning is indeed the first step towards score improvement. The smart tips that the individuals can adopt to improve the CIBIL score are as follows:
- Ensure to make timely payments by setting the reminders.
- Follow the 30% credit utilization rule for better credit management.
- Keeping an older credit card open for a long time will boost your credit score in the future.
- Prefer a loan for the long term that will reduce the monthly EMI burden.
- Avoid having multiple credit cards if not required.
- Try to compare the interest rates and tenure offered by multiple lenders before finalizing one.
- Make the EMI payments rather than shifting the whole amount to a lump sum payment.
- In the case of multiple loans, try to consolidate them in one place for better maintenance.
- Avoid acquiring multiple debts for a short period.
- Increase the variety of credit you have available to you by considering unsecured loans, secured loans, and credit cards.
- One of the best methods to enhance your CIBIL score is to check it at regular intervals.
- If the CIBIL check report contains a mistake, notify the authorities and ask them to correct it to avoid losses.
Once you know the CIBIL score meaning and the ways to perform CIBIL score check free, the chances of improving the score increase. Ensuring to keep an eye on the progress, an individual can ensure better scores and improved results. Ultimately, the CIBIL score is the benchmark of an individual's financial trustworthiness and creditworthiness.
