Do you know why your loan was rejected? Usually you find many reasons for such rejection. But one of them might be your CIBIL Score. If it is less than the prescribed limit then your application will get rejected. Also without knowing your credit history if you apply many times for loans or credit cards then your score will decline !!!
What is CIBIL Credit Score?
A credit score is detailed credit history and credit worthiness of a person. Based on this history CIBIL will give you the score from 300 to 900. Higher the score will be better for getting approval of your housing loan, car loan, personal loan or credit card.
Why Credit Report?
- It contains your past and present credit history.
- Today Banks and Financial Institutes sanctions loan based on your credit history. So a good score will help you to get loans sanctioned easily.
- You can follow the discipline in future by analyzing the current score.
- It helps you to understand your credit worthiness.
- It will automatically understand you whether to go ahead for fresh credit or not.
- Usually 750 to 800+ range of score is considered as a good score.
What affects your score?
- Irregular Loan Re-Payment.
- Cheque bounce in past.
- If you default your credit card bill.
- Higher number of unsecured loans such as personal loan and credit cards.
- Higher the rate of application for unsecured loans.
- If you are defaulter for your friends loan for whom you are acted as guarantor.
- Using your credit card limit fully.
How to improve your score?
- Never default your EMI or Credit card bills. Pay them regularly without fail and within a stipulated period.
- Don’t try to over burden yourself with number of loans. If your credit score is good then banks will usually be ready to sanction more loan than what you actually asked for. But maintain strict limit based on your requirement.
- Avoid having multiple unsecured loans and credit cards on single name.
- Always collect “No due Certificate” from your banker after closing the loan.
- Keep some distance while applying for fresh loans, usually a 6-12 months gap.
- Never be a guarantor to your friend or relatives. Because it will automatically affect your scoring if they default.
- Always try to utilize the lesser than specified limit on your credit cards.
- Never try to run-away from your loans. Try to settle them as soon as possible in a amicable way with your banker.
How to apply for CIBIL Score online?
Step 1–Fill the Form online
Complete the below form which is available online by visiting CIBIL site here.
You notice that the fee for getting online CIBIL report is set as Rs.470.
You need to fill your personal details in the field 2-like Name, Last Name, DOB, Gender, Address, State, City, Pin Code, Residency code (whether rented or owned house) and your income details.
You need to fill it up your contact details in the field 3-like phone and email details. This is required to contact you and send you the report online.
You need to provide Identity proof and address proof in field 4-Identity proof will be any of these four, like PAN Card, Passport, Voters ID or Driver’s Licence. Address proof will be Bank statement, Electricity Bill, Telephone Bill, Passport, Credit Card Statement or Voters ID.
Finally you need to provide your loan account number or credit card number to identify your history.
Step 2– Online payment
Once you click on “Click here for online payment” tab, it will redirect you for online payment of fee, which is Rs.470. You can pay using net banking, credit card, cash card or debit card. Once your online payment is successful then page will automatically redirect towards CIBIL Authentication page. But before that you will get and Identification ID, this you need to write it down for future correspondence related to your payment.
Step 3- Authentication
It is the process which involves answering around 3-5 questions from you related to your credit cards and loans. Once this authentication is successful then you will be eligible to view the report online immediately. But be ensure that to you disabled your browser pop-up blocker.
If your authentication failed then you need to send the physical copies of Online Payment Confirmation copy, Identity proof and Address Proof (which are mentioned above) to the below mentioned address.
Consumer Relations – Disclosure Request,
Credit Information Bureau (India) Limited, Hoechst House, 6th Floor, 193,
Backbay Reclamation, Nariman Point, Mumbai 400 021. Contact Nos-+91 – 22 6638 4600 and Consumer Helpline number-+91 – 22 6140 4300.
After that it will takes around 10 days to receive the score to your address through express delivery.
That’s all…this is the process to check your CIBIL score online (if your authentication success).