Home Finance What is the Significance of CIBIL Score? And How to Check Your...

What is the Significance of CIBIL Score? And How to Check Your Score Online?

371
0
corporate database
corporate database

Last Updated on March 10, 2024 by Haris Khan

Raj and Simi were both young professionals with dreams of a brighter future. One sunny afternoon, while sipping chai at Chai Break, they stumbled upon a conversation that would change their financial lives forever.

“What’s this CIBIL score everyone talks about?” Simi asked, puzzled by the term she had recently heard at her workplace.

Raj, who had a bit more financial experience, leaned in, and began to explain, “Simi, the CIBIL score is like a report card for your financial health. It is a three-digit number that tells banks and lenders how trustworthy you are when it comes to repaying loans and credit card bills.”

Curious, Simi wanted to know more. “But why is it so important?”

Raj grinned and elaborated on why a good CIBIL score, especially one above 750, was vital in their lives – 

Credit card approvals

Credit cards offer convenience and perks, but they’re often elusive for those with poor credit. A high CIBIL score flips the script. It not only increases your chances of getting approved but also opens doors to credit cards with attractive rewards, cashback offers, and travel benefits. It’s like a golden ticket to financial flexibility.

Lower interest rates

Imagine paying less for the same dream home, car, or education. A high CIBIL score can turn this into reality. Financial institutions view you as a seeker with low risk and reward you with a lower rate of interest. This infers you not just save on your funds each month but even the interest constituent outgo, which could have added up to a considerable amount if you had a lower score.

Easy loan approvals

A high CIBIL score serves as your financial passport, granting you access to your dreams. Whether it’s the dream home you’ve always wanted, a shiny new car, or an education that can transform your life, a good score makes loan approvals a breeze. Lenders see you as a responsible borrower who’s likely to repay on time, making them more willing to invest in your aspirations.

Faster loan processing

In the fast-paced world, time is of the essence. With a high CIBIL score, you become a trusted borrower in the eyes of lenders. They are more confident in your ability to repay, which speeds up loan processing. This means less time spent on paperwork and more time moving closer to your financial goals.

Job opportunities

In some industries, particularly the financial sector, employers view a high CIBIL score as a mark of financial responsibility. It may turn in your favour in the course of the hiring procedure. So, having a strong score can allow you to get the job you may be eyeing on for a long time.

Better negotiating power

Negotiating loan terms and conditions can save you a bundle. A good CIBIL score gives you the upper hand. You can demand favorable terms such as lower processing fees, longer repayment periods, or even reduced collateral requirements. It is like having a strong bargaining chip in your financial dealings.

Business loans

Entrepreneurs dream big, but they also need capital. If you plan to start a business, a high CIBIL score can help you secure the necessary funds. Lenders see you as a trustworthy borrower, increasing your chances of obtaining a business loan at favorable terms, giving your venture a solid financial foundation.

Emergency funds

Life is unpredictable, and emergencies can strike when you least expect them. In such times, having a high CIBIL score can be a lifeline. Lenders are more willing to extend credit during emergencies to those with good scores, providing you with a financial safety net when you need it most.

Financial trustworthiness

Your CIBIL score indicates your financial behaviour. It is a tangible measure of your responsibility and trustworthiness in managing your finances. A high score not only opens doors but also affirms your commitment to financial integrity.

Financial education

Managing and monitoring your CIBIL score can be a valuable financial education. It encourages responsible financial behaviour, such as timely bill payments and debt management. Over time, this knowledge can empower you to make informed financial decisions and build wealth.

Financial and mental peace

Money matters can be stressful, but a good CIBIL score can alleviate some of that stress. Knowing that you have a strong financial foundation, with the ability to access credit when needed, can bring a sense of peace and security to your life.

Improved lifestyle

A high CIBIL score opens doors to a better lifestyle. It permits you to attain your dreams quickly, whether it is attaining good education, traveling the globe, or enjoying a retirement life comfortably. Your credit score is not just a mere number; it is a key to achieving your life aspirations and desires.

Impressed, Simi wanted to know how they could check their CIBIL scores online. Raj shared some ways to do just that –

PAN number

CIBIL score check free online by PAN number is a convenient route. In simple words, you can check your CIBIL score free online by PAN number. Ensure your PAN card is linked to your financial accounts.

CIBIL’s official website

Visit the official CIBIL website and follow the instructions for a free report.

Bank portals

Many banks provide free access to your CIBIL score through their internet banking platforms.

Third-party websites

Reputable third-party financial websites can also provide credit scores for free.

Fintech apps

Several fintech apps offer free CIBIL score checks, often with added financial tools.

Loan apps

If you have an active loan, check if the lender provides your score on their app.

Credit card statements

Some credit card statements include your credit score.

Mobile wallets

Certain mobile wallets offer this service as well.

Credit counselling agencies

Some agencies offer free credit score checks as part of their services.

Credit score apps

Download dedicated credit score apps for regular updates.

E-wallets

E-wallets often collaborate with credit bureaus to provide free credit scores.

Subscription services

Enrol in credit monitoring services for regular updates and alerts.

Online loan marketplaces

Platforms where you can compare loans sometimes offer score checks too.

As Raj and Simi continued to explore these options, they realized that knowing their CIBIL score was not just about numbers; it was about securing their dreams and aspirations.

So, Raj and Simi learned that their financial journey was just beginning, and their CIBIL scores were the compass guiding them toward a secure and prosperous future. They understood that maintaining a good CIBIL score was not just a number; it was the key to unlocking their long-term and short-term dreams.