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Thursday, August 22, 2019


CIBIL is one of the leading credit score providers in India. A credit score is often popular with the name CIBIL score is the single number that forms a part of the credit report. It is a three-digit number that ranges from 0 to 900 and gives the lenders the idea of your payment history.

Whenever there is a need of loans or credit cards, banks and NBFCs will ask for your credit score with the help of which they can consider your application. There are many portals where you can check your credit score for free. However, some portals have charges pertaining to the same.

How to Check CIBIL Score by PAN Card?

The people who carry a PAN Card can only check their CIBIL score. You just need to mention the name as per PAN Card, the date of birth and your gender and PAN Card number in the form. Other than this you need to mention the contact details like the address, email ID and mobile number. Once you will mention these details, you can submit the form and you will get the score along with the credit report.

How to Improve Credit Score?

If you are an existing loan borrower or a credit card user but have sometimes missed paying the bills or the EMI on time, this directly affects your credit score. However, if you can avoid these, it will generate a good score and hence for the improvement try to make payments on time. So, if you want to improve your score, you should make sure that you make the payments on time.

Why is good CIBIL score important?

Even though the applicants who do not have a credit history which means they have never taken any kind of loan or have never had any credit card have 0 credit history. There is nothing these people are missing on but if you a credit history then it is an add-on. The customers who have a good payment history are preferably given better deals in both loans and credit cards. For instance, if you do not have a credit history and you apply for a loan, the lender will have no track of your past payment history which can help it trust you for the future payments. In this case, they will offer a little higher rate as compared to those who have a good CIBIL score.

How to create CIBIL score?

If you have 0 credit score and want to build a good credit score for your future financial needs, there are many ways that can be helpful. Here are some of the easy ways to generate a CIBIL score:

       Apply for Loans- You can take a consumer durable loan, a personal loan, a home loan, a car loan or anything for financial needs. A loan is the best way to create the score and if your EMI payments are on time that means you are not a defaulter, it will be a plus point for you.
       Apply for Credit Cards- A credit card is a finance available to your 24X7 for all kinds of financial emergencies. The credit limit given to you depends on your income. There is the facility of Grace period which is the time duration of generally 50 days interest-free. So, you can also apply for a credit card.

Factors Affecting Credit Score

There are certain basic but important factors that affect the credit score of the individual. If you manage to keep these things in mind, it will really be helpful for you.

       Avoid carrying credit cards who are of no use to you.
       Do not increase your credit limit as it affects your credit score.
       If you are using more than 50% of your credit card limit, it will affect the score.
       No-loan people also have a bad score of no credit score.
       Prepayment of the loans also affects the credit score.
       Late payments of the loan EMIs or the credit card bill.
       Positive payment history will help build a good CIBIL score or credit score.

Author’s Biography 

Srishti Singh is a professional financial writer who has written on various financial products like personal loans, home loans, credit cards, etc. She believes in delivering best of her knowledge so as to help the readers understand the product and be aware of their financial decisions. 

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