Most of us are familiar with the concept of ‘CIBIL score,’ which is an important part of your financial identity. A CIBIL score is a three-digit number that reflects an individual’s creditworthiness and is used by lenders to assess credit risk.
Regularly checking your score can help you maintain a healthy credit profile, identify areas for improvement and improve your chances of loan or credit card approval.
How to Check Your Credit Score?
Step 1: Visit the official website of TransUnion CIBIL at https://www.cibil.com/freecibilscore.
Step 2: On the home page, click on the ‘Get Free CIBIL Score and Report,’ which is available only once a calendar year. They can get a detailed report after paying certain applicable charges.
Step 3: After opting for a free CIBIL score, you will be redirected to a page where you have to fill in your personal information to sign up for the first step.
Step 4: Then, verify your identity through OTP and security questions. You can sign in to your account if you already have an account.
Step 5: After verification, you will be able to access your CIBIL score and report.
How to Improve Your CIBIL Score?
Consistent and timely payment: The repayment of existing debt can have a major impact on your credit score. Delays in EMI payments require you to pay a penalty fee, which lowers your credit score. So, set a reminder for EMI payments to make payments on time.
Opt for a longer tenure: Choose a lengthier repayment period while borrowing a loan, which ensures that your EMI is low, allowing you to make payments on time. Your credit score will improve if you do not default, delay, or omit EMI payments.
Avoid taking too much debt: If you take out many loans at once, it could mean that you are in a never-ending cycle of insufficient finances. As a result, your credit score will drop further. However, if you take out a loan and successfully return it, your credit score will improve.
Check your Credit Utilisation Ratio: Don’t use your credit card for all transactions, and try to keep your credit utilisation ratio at 30% or less. This will have a positive impact on your CIBIL score.
Check your CIBIL report: Check your CIBIL report at least once every month to identify any errors in your report. You can correct these errors by submitting a CIBIL dispute resolution form online.
