Looking to purchase your dream car or home? If yes, then we are here to tell you that it’s absolutely important that you know everything about your credit score. A credit score is essentially a number that denotes your credit worthiness. Banks or Non-Banking Financial Institutions (NBFCs) like Finserv Markets usually check this score before deciding to approve or reject your loan application. Hence, it is imperative that you monitor your credit score regularly.
TransUnion CIBIL formerly known as the, Credit Information Bureau India Limited is India’s first credit information company that maintains the financial credit history of every individual. It tracks and maintains the record of credit cards, loans etc. of people and generates their ratings based on the transaction, usage, and repayment pattern. The CIBIL report score stands crucial to every individual as the certainty of availing future loans and credit cards depend on it.
Steps to check the Credit score
A CIBIL number is a three-digit number that ranges from 300-900 and decides the financial worthiness of an applicant. It is important that people check their CIBIL score before applying for a credit card or loan which they can acquire by following the below mentioned steps:
- Initiate the process by filling the form available on the website
- Enter the required details like, name, address and contact number
- Pay a nominal fee to get the detailed score and credit history
- Conclude the form filling process and payment
- CIBIL sends the score and detailed report on the desired email ID
CIBIL score can also be acquired offline by mailing the necessary documents and a demand draft for the score generation to the CIBIL office in Mumbai. As per RBI guidelines, from January 2017, it is mandatory for the credit rating agencies in India to provide one free credit score and one free credit report per year to any individual.
Key Things To Look For in Credit Report
Your credit score determines your creditworthiness and it is an important factor considered by financial institutions while approving your loan application. With a high credit score, you can avail a loan with ease at an attractive interest rate.
In order to evaluate your credit history, financial institutions may ask you for your credit report. You can avail your credit report by filling an online application form on CIBIL’s official website. After you obtain your credit report, it is essential that you check it thoroughly to ensure that it is error-free. Mistakes in the credit report can affect your financial decisions significantly and hence if you spot any errors, make sure that you correct it at the earliest. Below are some of the most important things that you must look for in your credit report to ensure that it is error-free.
- Personal details such as name, address, contact number, Date of Birth, income tax ID, PIN, etc.
- Account details such as account number, account type, loan type, opening and closing dates, balance, account status, asset classification, etc.
- Payment details and amount.
- It can also happen that the account information of two borrowers may be mixed up accidentally. This kind of error can also hamper the CIBIL report significantly.
Since your credit report plays a crucial role in determining your loan eligibility, it is essential that you check it carefully. If you happen to spot any error, you should get it rectified at the earliest. This will help you avoid any inconvenience in the later stage.
A loan application, be it a home loan, personal loan or a business loan with Finserv MARKETS comes with a “Financial Fitness Report (FFR)”? The FFR is essentially a summary of your credit score and the factors on which the score has been calculated. This report can immensely help you evaluate your current score, identify if there are any gaps and take a course of action in case needed. It is important to note that each loan application translates into a “Hard Inquiry” by the financial institution to extract your credit score. This will have an impact on your score and may result in a reduction by a few points. Hence it is also important that you should not put in multiple applications as it may affect your credit score.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”