How to check your credit score for free online
Wondering how to check your credit score? Our article will guide you through the process and explain the importance of a good credit history
By Forbes India
Last Updated: Jun 10, 2024, 15:45 IST5 min
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Credit score checkers provide a convenient way to access and understand one"s creditworthiness by generating a numerical representation known as a credit score. Users can monitor their credit health, track changes, and receive insights into factors influencing their scores, such as payment history and credit utilisation. Additionally, credit score checkers offer personalised tips to improve credit standing and help users make informed financial decisions.
In this article, we’ll learn how to check your credit score and its importance.
What is a credit score, and how is a credit score calculated?
A credit score is a three-digit number that represents a person"s creditworthiness. It serves as a key factor for lenders in assessing the risk associated with extending credit. Usually ranging between 300 and 900, a higher score indicates better creditworthiness, making it more likely for a person to qualify for loans and credit cards with favourable terms.
Factors including payment history, credit utilisation, length of credit history, types of credit accounts, and recent credit inquiries determine credit scores. Credit reporting agencies use sophisticated algorithms to analyse this information and generate a comprehensive credit score, providing lenders and individuals with an efficient way to evaluate and manage credit risk. Regularly monitoring and understanding one"s credit score is essential for maintaining financial health and making informed borrowing decisions.
Different credit bureaus available in India
A credit bureau acts as a credit agency that gathers and disseminates individuals" and organisations" credit information in the form of a CIBIL score, aiding in evaluating creditworthiness for lenders and creditors. Here are the four credit bureaus in India that can provide a credit score for you:
TransUnion CIBIL score:
TransUnion CIBIL is a comprehensive credit bureau providing analyses for organisations and individuals. The credit score scale ranges between 300 and 850, with a score of 720 or above considered excellent.
TransUnion CIBIL has a broad membership base, including major financial institutions, lenders, NBFCs, and banks.
You may have heard the terms CIBIL score and credit score used synonymously. It’s important to remember that while all four of the credit bureaus in India can provide you with a credit score, only CIBIL calculates your credit score as the ‘CIBIL score’.
Below, we have mentioned different CIBIL score ranges and what they signify:
| CIBIL Score Range | What it Means |
|---|---|
| 300-549 | This represents the lowest range in the CIBIL score scale. It indicates a history of delayed payments on credit cards or loan EMIs, suggesting a heightened risk of potential default. |
| 550-649 | While falling within the fair range of CIBIL scores, this indicates challenges in meeting payment obligations promptly. |
| 650-749 | This CIBIL score reflects positive credit behaviour, enhancing the likelihood of credit card or loan approval. However, securing the most favourable interest rates during the loan application process may still be challenging. |
| 750 – 900 | A CIBIL score exceeding 750 is considered excellent it indicates consistent on-time payments and an impressive payment history. With minimal risk of default, individuals with such scores can quickly secure loans from lenders at favourable interest rates. |
Equifax credit score report:
Equifax offers portfolio and risk scores in addition to credit scores, typically ranging from 1 to 999 for individuals.
Serving as an approved credit rating agency since 2010, Equifax provides diverse reports such as portfolio management, industry diagnosis, credit fraud, and risk management reports for companies.
Experian credit score report:
Established in 2010, Experian conducts analyses for companies and individuals, providing credit scores ranging from 300 to 900. The turnaround time for receiving a report from Experian is typically 20 days.
CRIF High Mark Credit Score report:
CRIF High Mark conducts credit rating analyses for both corporates and individuals. The credit rating scale ranges from 300 to 850.
How to check your credit score for free on CIBIL"s official website
To check your credit score for free on the official CIBIL website, follow these steps:
- Visit https://www.cibil.com/ on your device.
- Look for "Get Free CIBIL Score & Report" at the top click it. If not visible, scroll down to "Self Service."
- Here, select "Free Annual CIBIL Score & Report." Both choices lead to a new page for CIBIL membership enrollment complete the form with your email, new password, name, ID details, DOB (Date of Birth), Pin Code, and mobile number.
- After completing the form, click "Accept & Continue." An OTP will be sent to your mobile number accurately enter it and click "Continue."
- Navigate to the dashboard by clicking "Go to Dashboard" to view your free CIBIL score and report at myscore.cibil.com. For a detailed report, a paid subscription may be necessary.
Third-party apps that offer credit scores
Third-party apps in the context of credit scores refer to applications developed by entities other than official credit bureaus. These apps provide users access to their credit scores and related financial information. Here are five third-party apps that offer credit scores:
Paytm: Beyond payments, Paytm provides users with insights into their credit health, offering a convenient way to check their credit scores directly within the app.
Cred: Cred rewards credit card users for timely payments. It also offers a feature to check your credit score.
Amazon Pay: Amazon Pay has incorporated credit score services, allowing users to access their credit information seamlessly.
Freecharge: Freecharge, a digital wallet platform, extends its services to include credit score checks, providing users with a holistic view of their financial standing.
PhonePe: PhonePe, a popular payments app, goes beyond transactions by allowing users to check their credit scores, contributing to financial awareness.
Importance of maintaining a good credit score
A favourable credit score offers numerous benefits and plays a pivotal role in financial health. The benefits include:
- Loan approval and interest rates: A good credit score increases the likelihood of loan approval at lower interest rates, resulting in cost savings.
- Favourable credit terms: Higher credit scores lead to better credit terms, such as higher credit limits and improved repayment terms, providing financial flexibility.
- Employment opportunities: Some employers consider credit history during hiring, making a good credit score an asset that enhances employability.
- Renting and utilities: Landlords may check credit scores for tenant screening, and a positive credit history facilitates more accessible rental agreements.
- Financial stability and peace of mind: Maintaining a good credit score reflects responsible financial behaviour, contributing to overall financial strength and reducing uncertainty-related stress.
First Published: Jun 10, 2024, 15:45
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