How to Check CIBIL Score?

by Arjit Chalmela Finance Student

Until a few years back, secured loans were the only type of loan offered. With the advent of unsecured loans, the lending industry has undergone a complete change. Unsecured loans mean that the borrower does not need to keep any collateral for the loans. With unsecured loans becoming popular among borrowers, the onus is on the lender to ensure due diligence.

One tool that lenders exhaustively rely on for the purpose of loan application verification is the applicant’s credit or CIBIL score. It is an indication of a person’s repayment capability. There are different credit unions which calculate your credit score based on the following information:

Repayment of outstanding loan installments
Part repayments and pre-payment of loans
Payment of credit card debt
Number and periodicity of loan applications
How long you have had an outstanding loan
Number of outstanding loans
Type of credit
Hard inquiries on your credit reports

All this information is generally reported by financial institutions. In India, there are four major credit unions, however, CIBIL TransUnion is the most popular one.

Each credit union calculates the score using a different formula. All the information collected above holds different weightage that finally calculates the score. Your rating gets calculated out of 900. The higher the score, the better your chances of getting a loan, especially ones such as a personal loan.

How to check them?

One of the common questions often asked is how to check CIBIL score? The procedure is simple and hassle-free. You can monitor them online. You can even get a free check from the CIBIL website. Enter the CIBIL website and fill up a form. The form requires details such as:

Personal details
PAN number
Aadhar number

Once entered, CIBIL TransUnion will send a One Time Password (OTP) to verify your identity. In case the OTP does not work, they may call for additional information. One thing to remember is that CIBIL will not ask for any financial information like bank account number or PIN. Generally, these calls are scams and if you receive them, protect your information from these phishers. Do not share any detail under any cost.

The next step is to answer questions regarding your credit card, outstanding loans, etc. Based on this information, your CIBIL score gets calculated.

CIBIL TransUnion may also offer a detailed report in lieu of some fees. However, a one-time report is available free of cost. The system creates an account in your name. You need to verify your email ID. Once done with email verification, your account gets created. Your account will have all personal details along with your credit ratings.

It is better to check your CIBIL score frequently especially the report. There may be wrong information communicated by financial institutions or some transactions may be omitted. Checking them is better if you are planning on making any loan applications in the future. If you find any mistakes, approach CIBIL TransUnion for rectification.