CIBIL score for free

 

CIBIL score for free

Let us begin with understanding that CIBIL is only one of the four bureaus in India (the other three being Equifax, Experian and CRIF High Mark) and while referring to a free CIBIL score, we actually mean free credit score. Before we move on to find out how one can get a score for free, let’s learn more about the score itself. Ranging from 300 to 900, the score indicates how creditworthy a consumer is, and thereby how likely the person is to default on a loan. It is the first piece of information that a lender evaluates at the loan processing stage and hence is critical to one’s financial health.

In India today, as per a survey conducted, the awareness levels on the subject are unfortunately rather low and in the very nascent stage. With less than 5 percent of the population being aware of what a credit score is, we still have a long way to go, especially in comparison to global standards.

Further, as per the survey, a mere 4 percent of the respondents had reviewed their credit score in the past year, a number that needs to go up significantly.

Is there something like a free CIBIL score?

With that as a thought, credit scores are being made available without any fees and charges by Credit Sudhaar and www.freescoreindia.com, in order to encourage people to not be aware of scores merely as a concept, but to also understand the importance of using scores. If you look at the global scenario, scores are used in areas that do not include financial services, such as telecom and leasing. So much so, employers too check credit scores before offering a potential candidate a job.

While bureaus themselves do not provide free scores or reports, they do make them available at a fee to consumers. Hence, logging on to the website will yield you a report, on providing some basic documentation.

The first step to do would be to request for a free score, so that you are aware as to where you stand. Following from there it is advisable to call for a copy of the credit report, so that if any corrective action is required, it can be immediately taken. Keep in mind that sometimes, a credit report may contain erroneous information, which if not rectified can pull down the score dramatically.

Below is the process to be followed, to generate a free credit score:

1. Log on http://www.freescoreindia.com/.

2. Click on ‘Check your free credit score’.

3. Fill in a simple online application form.

You will need to provide some basic information such as your name, email address,the city you are located in, and phone number.

The reason for requirement of the credit report also needs to be stated.

4. Once done, click on the‘Submit’ button.

5. On submission of all the required details and documents, your credit report will be updated to your online account with Freescoreindia within 72 hours.

6. You will receive notification via email and SMS regarding the same.

7. Login, and view the details mentioned therein. It is always prudent to monitor your credit report, as any erroneous information in the same can lead to your credit score getting impacted negatively.

Why should I check my score?

Checking a score is very important given that before a lender decisions an application for a loan or credit card, they check the score. A good score will ensure that not only do you get credit when you really do require it, but it will also be made available to you at the most competitive rates of interest and other terms. In order to remain credit healthy and thereby give a boost to your financial life, starting with knowing your score is crucial.

You can get your CIBIL score on the CIBIL web portal. The Reserve Bank of India has instructed the credit bureau of India to provide individual borrower’s credit history online. As per the rules of RBI, you can check your CIBIL score for free once a year.

Follow the underlying steps to know how to get your credit score for free.

1. Visit CIBIL Score | Credit Score | Credit Report | Loan Solutions and click on the Get Your CIBIL Score tab.
2. First-time users will have to create an account by entering their name, email address, and mobile number. It allows you to create a username and password of your choice.
3. After creating your account, enter your details like date of birth, address, PAN Card, or Aadhaar Card number.
4. Click on the Accept and Continue tab.
5. Verify your identity via an OTP generated to your registered mobile number or email address.
6. You will need to confirm your enrolment after verifying your identity.
7. Go to the dashboard and view your credit report.

Since you have created your account, going forward you can directly log in with your username and password to view or download your credit report. Keep in mind that you are allowed to check your credit score for free only once a year.

Here are some more methods:

1. You can check on your bank’s or lender’s websites - some banks like ICICI Bank Ltd. allow their customers to check their CIBIL score for free via their mobile app / internet banking.
2. You can check using the PayTM app - Just select “Free Credit Score” under “Loans and Credit Cards”

) Writing to the bank and asking them to waiver the fee.

b) Asking someone to do the job for you and defaulting on the payment

c) Obtain the credit bureau score and report from Equifax for free by visitingPage on freescoreindia.com by submitting basic information about yourself including your PAN number and Aadhar number. After you have submitted these, your credit report will be updated and an email will be sent to you informing you of the same.

In India, there are three agencies who provide CIBIL Score & Report: Experian, Equifax and TransUnion. At the time of applying a loan banker's prefer TransUnion CIBIL Report because TransUnion CIBIL Report is accurate and moreover all the Banks & Financial Institutions are registered with TransUnion CIBIL. Most of us when checking for CIBIL Report end up purchasing it without knowing how to get free TransUnion CIBIL Score & Report from CIBIL website itself. This video shows how to get TransUnion CIBIL Score & Report for free.

There are 4 credit bureaus in India - as per an RBI notification in September 2016, all credit information companies/agencies will have to provide one full credit report free of cost, on request, once a calendar year, to individuals whose credit data they hold w.e.f January 01, 2017.

This Credit Information Report (CIR) is a report that details your credit history. This has been reported to the credit information company by banks and other lending institutions who have at some point, extended credit to you. Broadly, it would contain the type of credit (loans, credit cards, overdraft), duration, your payment history and defaults, if any. It is a report that can be requested by a prospective lender to gauge your credit worthiness

The Credit Score is the first item in your credit report - a 3 digit number that is an indicator of your credit history. It ranges from 300 to 900 – the higher the better. Lenders typically look at scores from 700-750 onwards.

A score below that would be a cause for concern if you’re thinking of applying for a loan/credit card. If you’ve never availed of a loan or credit or are new to the system, the score may show NA/NH meaning there is no credit history at that time.

This could also apply in case of no credit transaction in the preceding 2-3 years. In CIBIL, there is also a new version known as CIBIL Score 2.0 which has a risk index score for those with a credit history of less than 6 months. This score ranges from 1-5, where 1 means high risk and 5 indicates low risk.

You can check your CIBIL score at CIBIL’s official website.

If you want to check your credit score, follow the below steps to perform free online credit score check:

Step 1: Visit the official website of Clix Capital.

Step 2: Create a CIBIL account by giving your name, mobile number, email address, etc.

Step 3: Check the box that indicates your agreement to Clix Capital’s Terms of Use.

Step 4: Click ‘Get Your Score’ button, to receive an OTP to verify your mobile number.

Step 5: While your score is being fetched, you’ll be asked to state your occupation type, employer name, and monthly income as well.

Step 6: After accomplishing all these steps, you’ll receive your credit score score. It’s that easy!

Here are some ways to build up a CIBIL Score

• Apply for a credit card
• Apply for a loan be it secured or unsecured
• Every time you apply for a credit card, it impacts your credit score. Therefore, try to avoid applying for numerous credit cards all at once as to lenders you will come off as a credit-hungry person.
• People don’t get credit scores from credit bureaus either because they are new to credit, or their credit history is negligible for bureaus to even consider. If you want to build a healthy credit score, make sure you use your credit card regularly. Since, it takes time to build a healthy credit score, regular use of credit cards while ensuring their timely repayments will help you build a good credit history.
• The balance-to-limit ratio, also known as credit the utilization ratio is the proportion of the credit limit and the amount you have spent using a credit card.

Credit history is not built in a day. It may take six months or even a year depending on how well and often you use and handle credit. To build an impressive credit score takes even more time. If you want to reach the excellent credit score range and then maintain it, just keep working towards it. Perseverance is the key mantra to achieve and maintain a good credit score.

Here are the steps to find out your CIBIL score:

• Log on to CIBIL’s website.
• Find a link that says ‘Check Your Free Credit Score.’
• Fill up the form on the subsequent page, asking for your personal information such as full name, date of birth, PAN or Aadhaar card number, etc. Click ‘Submit’.

You will get your credit report along with your score instantly, or it will be sent to your registered email ID within 24 hours.

CIBIL offers a free credit report once a year for all individuals. If you want to check your credit score more than once a year, you can choose from CIBIL’s affordable plans and pay a minimal amount to do so.

These days many banks and NBFCs offer a free credit score check through their websites. All they will ask for is your PAN, after which you can get a detailed report.

Here are some institutions which offer a free credit check:

1. Fullerton India (CRIF score - free to all visitors including non-customers)
2. PayTM - available to PayTM users through the app itself
3. ICICI Bank - available to account holders via the mobile app

Visit any of the following sites

1. TransUnion CIBIL
2. Highmark
3. Equifax
4. Experian

You are entitled to get one free score in a year.

The free scores may not always be perfect. If you are planning to apply for a loan, it makes sense to pay and get your credit score with all details.

You will know what to do to repair bad scores. If not, you can consult an expert to help you with that.

A credit score is calculated based on five components that have associated weights:

· Payment history

· Amounts owed

· Length of credit history

· How many types of credit in use

· Applications for new credit accounts.

The higher your credit score, the less risky your profile may be to the lender. Having a good credit score can benefit you to take a loan, rent apartment and lower your insurance rate.

Process:::Get your CIBIL (credit) score in 3 simple steps-

1.Enter your personal details. Ensure it matches your ID proofs.

2.Verify your identity. Confirm the OTP sent to your mobile number and email ID.

3.View your CIBIL report. Check out the best loan offers customized for you

Do all individuals hold a credit score?

A credit score is only applicable to individuals who have a history with some form of credit facility like availing a credit card or loan in the past. It ranges from 300 – 900. This broad-spectrum is segregated into different categories in the following manner

• 300 – 680 – Subprime.
• 681 – 730 – Near prime.
• 731 – 770 – Prime.
• 771 – 790 – Prime plus.
• 791 – 900 – Super prime.

When you apply for a line of credit, especially the unsecured ones like personal loans, lenders set the interest rate on them based on the category in which you fall.