The CIBIL score is referred to as the measure of the candidate’s creditworthiness. It is a three-digit numeric summary of your credit history and credit rating, ranging between 300 to 900. The CIBIl score determines the candidate’s ability to pay while obtaining a loan. This is the reason that banks check the borrower’s credit score on a prior basis before going any further in the process of the loan application. If the bank releases that your CIBIL score is good, then there are chances that you may get loan hassles free with quick loan amount disbursement. The higher your score is close to 900, the greater chances are there for you to get a hassle-free loan. There are many CIBIL associated websites in which you can keep a CIBIL score check for free by providing your general information.
CIBIL Score Check Free
You can keep a CIBIL score check on the official CIBIL website, however, there is a price associated with this.CIBIL score for free can only be checked once on the official CIBIL website.
Because CIBIL scores are such a crucial aspect in obtaining any form of loan nowadays, many of the partner organizations and other banks offer to check CIBIL scores for free. You will not have to worry about any price, and you can check your CIBIL scores in seconds. You must try CIBIL Score check free to look for your scores on CIBIL powered websites so that you can acquire your real ratings and make plans to enhance your credit history.
In India, you may check your CIBIL score for free using various third-party companies such as Amazon Pay, Wishfin, Paytm and many more. Free CIBIL scores are a more convenient option rather than paying hefty amounts to check your credit scores every time.
Composition of CIBIL Score
Your CIBIL score is composed of the following factors. On the basis of these components, the CIBIL score is calculated –
| Repayment History | 30% |
| Types of credit availed and their duration | 25% |
| Credit Utilisation Ratio | 25% |
| Other factors | 20% |
Reasons for low CIBIL Score
If you haven’t applied for a loan or credit card, or if the credit bureaus don’t have enough information about your credit history, this can happen. Your CIBIL score will include a notice regarding the lack of credit history in this scenario. It takes both time and patience to establish a considerable credit history. It could take six months or a year, depending on how successfully and frequently you utilise and manage credit. Building a good credit score takes time and effort. You need to keep working and paying your bills on time if you want to earn and maintain a good credit score range. The importance of consistency in earning and keeping a strong credit score cannot be overstated. Some of the major reasons for a low CIBIL score are –
- Absence of credit history or payments
- Loans acquired in the wrong combination
- Several loans obtained
- High ratio of credit utilization.
Ways to improve your CIBIL Score
Some of the major tips to build your credit score are –
- Pay your bills on time.
- Limit your credit usage. In other words, maintain your credit utilization ratio.
- Do not apply for multiple credit cards.
- Monitor your credit report on a regular basis.
- Balance your types of credit limit availed. There should be a good combination of secured and unsecured loans.
- Always keep old debts on your report, especially the longer ones.
- Lastly, be patient and consistent.
The Bottom Line
CIBIL score is considered as one of the most important factors for a personal loan apply or to obtain any other form of credit. In cases of unsecured loans such as a personal loan, CIBIL score is the only dependent factor on which the lenders can rely. They judge the repayment capacity on the basis of your credit score and if the lenders get assured that you will be able to repay your loan on time, you will get the loan hassle free.
