A three-digit number that shows your credit history is known as CIBIL Score. This score, determined by employing your credit report, is also known as the Credit Information Report and includes your credit history. A CIR is your credit payment history across loan kinds and credit institutions. The CIBIL score ranges between the numbers 300 and 900. The perfect CIBIL score for a loan is 900 or close to it. Though a score above 700 is usually considered good. If your score is close to 300, there are higher chances of your application to be rejected.
Before you connect with a lender for business funding, make sure to compare and see all the funding options available in the current market. To avail the perfect business loan, you need to have a good CIBIL score as it does decide your credibility.
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Importance of CIBIL Score
- Whether you are taking a business loan, home loan, education loan, or getting a credit card, you cannot afford to ignore your CIBIL score. As you get your CIBIL score based on your financial history, it is essential to keep a good financial record. This score decides whether or not you will get a loan/credit card and suitable interest rates.
- Lenders and NBFCs check this score to get an idea of your credit health and history that also determines your capacity to repay on time. Ultimately, it reflects your creditworthiness when you apply for a loan. Be eligible to apply for credit under good terms by trying to keep a good CIBIL Score to avail loan of your choice.
Check your CIBIL Score with PAN Card
Most people connect their PAN card with their financial accounts. It makes it easy for the lenders to locate your details. The PAN card number is only used for seeing your CIBIL score. It hasn’t been used for any other reason other than finding your credit details and authenticating by using connected information.
When you want to check your credit score, you need some necessary details along with the PAN card number. You also need to pay a fee to acquire the score. If you’re planning to check your CIBIL score for a business loan, firstly, ensure to know the ideal score to avail of the best business loan deals.
However, you can also find your CIBIL score with your Pan card for free by following these steps:
- Visit cibil.com/freecreditscore
- Enter all your necessary details asked
- In the identity proof section, choose ‘Income Tax ID Number (PAN) and enter its number.
- Select the income type
- In the next part, enter your address, telephone number, and email address.
- Click on ‘Submit’
- You will acquire your FREE credit report and score within 24 hours in your inbox.
In case you have already selected the Free CIBIL report for the current year, you need to follow these steps:
- Visit www.cibil.com/creditscore/.
- Enter all your necessary details such as PAN number, email address, date of birth, and gender.
- Select the item you wish to buy.
- On the next slide, you will be asked to fill further information such as full name, address, and phone number. Upon entering, some questions are asked regarding loans and credit cards. Make sure to answer them attentively.
- Your CIBIL report and score will be sent to your email ID within 24 hours.
Easy Steps to Improve Your CIBIL Score
Your CIBIL report maintains a track of your previous repayment on credit cards and loans. That is why lenders consider your past and present performance to decide your repayment ability in the future. Are you planning to take a loan for business funding? If yes, then you should know that every lender and NBFCs have different parameters set for a particular loan amount.
Now that you know the ideal CIBIL score to get your loan or credit card application approved, it is essential to improve it if your score is not up to that mark. This issue raises the question of how to improve Cibil Score as the more you score; the better lenders you attract and avail amazing loan offers. If you see a bad score on your credit report, take a few easy steps to push your CIBIL score in the right direction, and boost your creditworthiness.
- Increase the Limit of your Credit: When your credit limit increases, it does not only mean that you get an opportunity to spend beyond your means. It offers many advantages only if you manage your credit correctly. By maintaining your credit usage low, you will experience a positive influence on your CIBIL score. Do not spend over your repayment ability.
- Pay EMIs timely: When you’re planning to make a big purchase like a home or car, make sure that you pay back your credit card bills and EMIs on time. It is one of the essential aspects that enhance your CIBIL score for loan and creditworthiness.
- Keep track of Your Credit Usage Ratio: It is vital to use your credit card correctly. Avoid using it for everything as it is better to maintain your credit usage ratio up to 20 percent or below. By doing so, you will see a positive effect on your CIBIL score, and keeping monthly balances low will showcase an excellent CIBIL score.
- Eliminate the balances: Unpaid dues or substantial balances on credit cards make your score down. To avoid such situations, spend only what you can repay within the billing period. Clearing of such balances will positively impact on your CIBIL score.
Benefits of High CIBIL score
- Cheaper interest rates on all types of loans
- Get cards with better perks and rewards
- Employ pre-approved loans
- Acquire loans with longer tenure
- Faster approval on credit applications & loans
- Have a negotiation power
- Discount on loan processing fees and other related charges
- Acquire higher credit card limit
As now you know the fantastic benefits of a high CIBIL score, make sure to maintain a Good CIBIL score to avail loan.