Meet Raj, a young professional working in Mumbai who dreams of buying his own home one day. Raj knows that a good CIBIL score is essential to realise this dream, but he is not entirely sure how to conduct a CIBIL score check online free. Like many of us, he’s on a quest for financial stability and success.
But first, what exactly is a CIBIL score? The Credit Information Bureau (India) Limited, or CIBIL, is the most prominent credit bureau that evaluates your creditworthiness. Your CIBIL score is a three-digit number that ranges from 300 to 900, with a higher score indicating better creditworthiness. It reflects your credit history and helps lenders assess the risk associated with lending your money.
Benefits of a good CIBIL score –
Lower interest rates
Having a good CIBIL score translates into lower interest rates on loans, resulting in substantial long-term savings. Take Rohan, for example. His excellent CIBIL score allowed him to negotiate a reduced interest rate on his car loan, ultimately leading to significant cost savings compared to what he would have paid with a lower credit score.
Higher loan approval rates
A high CIBIL score significantly enhances your chances of loan approval, whether it’s for a home loan, car loan, or personal loan. Lenders view individuals with high CIBIL scores as lower-risk borrowers, making them more desirable customers. For instance, Raj’s friend Anjali possessed an outstanding CIBIL score of 800, which not only helped her secure a home loan but also enabled her to enjoy a lower interest rate on it, thus making her an ideal borrower in the eyes of lenders.
Faster loan processing
Lenders prioritise applicants with high CIBIL scores because they represent lower credit risk. This prioritisation translates into faster loan approvals and disbursals. Pooja’s personal loan was approved within a mere 24 hours, thanks to her high CIBIL score. The speedy process allowed her to address her financial needs promptly.
Negotiating power
A robust CIBIL score empowers you to negotiate better loan terms with lenders. This negotiating power can result in more favourable conditions for your loans. Ravi, with his high CIBIL score, effectively negotiated flexible repayment terms for his business loan, enabling him to manage his business finances more efficiently.
Credit card approvals
Credit card companies are more inclined to approve applicants with good CIBIL scores, often offering premium cards with rewards and benefits to such individuals. Amit’s excellent credit score not only secured his approval for a premium credit card but also unlocked travel rewards and exclusive perks, enhancing his overall lifestyle.
Access to higher credit limits
Lenders are more comfortable extending higher credit limits to individuals with good credit scores as they are perceived as responsible borrowers. Smita’s consistent repayment history and excellent CIBIL score led to a substantial increase in her credit card limit, providing her with greater financial flexibility.
Cell phone contracts
Telecom providers may check your CIBIL score before offering postpaid plans with favourable terms. Karan’s good credit history, thanks to his high CIBIL score, allowed him to obtain a discounted smartphone along with his postpaid plan, making his communication expenses more affordable.
Better rental agreements
A few landlords in porch areas may request your CIBIL score as part of the rental application process. A favourable CIBIL score can significantly contribute to securing a desirable rental agreement. Tina’s high CIBIL score played a pivotal role in her landlord’s decision to offer her a prime apartment in Mumbai at a reasonable rent.
Employment opportunities
Some employers, particularly in the financial sector, consider CIBIL scores when making hiring decisions. A strong CIBIL score serves as evidence of financial responsibility. Meera’s impressive CIBIL score played a pivotal role in her selection for a finance position, demonstrating her trustworthiness as a candidate.
Financial security
A robust CIBIL score acts as a safety net in times of unexpected financial emergencies, allowing you to access funds quickly through loans or credit cards. Nisha’s CIBIL score came to her family’s rescue when they needed to secure a personal loan for urgent medical expenses, providing the financial security they required.
Business loan approvals
Entrepreneurs with strong CIBIL scores have a higher likelihood of securing business loans for their startups or expansions. Arjun’s thriving restaurant business was made possible by a business loan he obtained with his solid credit score, fueling the growth of his venture.
Reduced stress
Good credit scores lead to reduced financial stress, as you’re less likely to face loan rejections or high interest rates. Vikram enjoyed peace of mind during his daughter’s wedding, knowing he could easily access funds with his high CIBIL score, eliminating the stress of last-minute expenses.
Credit card rewards
Credit cards often offer rewards and cashback benefits to customers with excellent credit scores. Maya earned significant cashback rewards on her credit card purchases, thanks to her stellar CIBIL score. These rewards enhanced her overall financial well-being.
Financial education
Regularly monitoring your CIBIL score encourages financial responsibility and education. It prompts individuals to make informed financial decisions. Aarav’s journey of checking his CIBIL score led him to educate himself about credit management, ultimately resulting in improved financial choices.
Now that we understand the significance of a good CIBIL score, let’s explore how Raj can check CIBIL score by PAN card for free.
Steps to check your CIBIL score online for free through your PAN card –
Step No. 1
Open the CIBIL site and search for the “get your free CIBIL score report” option.
Step 2
Fill out your personal information, including your PAN card details, contact number and birth date.
Step 3
Validate your identity via the OTP or one-time password sent to your mobile number.
Step 4
Assess your score and report to review for any errors or discrepancies.
Step 5
If everything appears right and accurate, you can download for free your report, which offers an in-depth insight into your past credit record.
Wrap-Up
Raj stepwise followed the process and was relieved to see his CIBIL score increase to 750. With this knowledge, he started making better decisions to secure his financial future, just like others. So, remember your score is an essential number that unlocks distinct financial opportunities and secures your well-being.