How to Check CIBIL Score to Apply for a Home Loan?

Credit Information Bureau (India) Limited (CIBIL) is a credit bureau or credit information company, engaged in maintaining the records of all the credit-related activities of companies as well as individuals, including credit cards and loans. The higher the CIBIL score is, the higher the possibility of lenders approving the loan or credit card application.

A CIBIL score is a 3-digit number ranging from 300-900 that indicates the report of financial credit history. A score near or around 900 is considered to be excellent, whereas a score above 750 is good. On the other hand, a score near or around 300 is awful and is regarded as an unqualified score. Hence, it becomes mandatory to check the CIBIL score. 

The credit score of an individual is issued by an authorized credit bureau operating in India, that is considered to be valid and accepted by all lenders and credit reviewing authorities. There are 4 major credit rating agencies operating in India, namely:

• CIBIL™
• Equifax
• Experian
• CRIF Highmark

CIBIL Score Ranges

Below is a list of credit scores that are considered to be good by lenders for lending and loan purposes:

• No history hints that no credit card is used or a loan is taken.
• 350-549 scores indicate that often there is a failure to pay credit card bills or loan EMIs.
• 550-649 shows a fair CIBIL score that means by meeting deadlines, the score is getting boosted.
• 649-749 implies a good CIBIL score and means that the dues are paid on time.
• 750-900 pinpointing excellent scores means that the dues are always paid on time and deadlines are never missed.

Good CIBIL Reports

A CIBIL Report is a complete report that provides detailed information about the credit history of numerous lenders over a specific tenure. It is basically a document that provides information related to the borrowing history and repayment ability. Below mentioned are its contents:

• Personal information, like name, birth date, residence address, and gender
• Employment information and earnings
• Number of hard credit inquiries lenders made on loan or credit card application receipts
• Earlier and current loans, together with payment record
• Loan defaults
• Information on settled loans
• Overall credit limit and the monthly spent amount
• Defaults on credit card bill payments
• CIBIL score

Reasons to Retain a Good CIBIL Score

Below mentioned are the reasons to retain a good CIBIL Score:

• High potential of lenders approving your loan or credit card application.
• The possibility of getting a low interest rate from lenders. For instance, if you are applying for a home loan from ICICI bank, and you have a credit score of 750+, there are high chance that you will be able to avail yourself better ICICI home loan interest rates than any individual with a credit score lower than 750
• Less likelihood of turning into a defaulter
• Access to pre-approved loans
• Discounts on processing charges and other fees

Different Ways to Check CIBIL Score

•  Using PAN and Aadhar Card: 

• Visit the official website or download the mobile application.
• Navigate to the option “CIBIL score”.
• Enter the Permanent Account Number along with the contact details.
• Enter the name and birthdate as per the details mentioned on the PAN card.
• Lastly, submit the information entered to check the CIBIL score.

• Check for free using WhatsApp:

• Give a missed call on 1-8287151151.

• • An SMS will then be received from the above-mentioned number on the registered mobile number.

• Now answer a few questions, like name, Permanent Account Number, contact details, etc.

• Check for Free:

One can Check CIBIL Score by visiting the official portals of CIBIL and downloading the CIBIL mobile application, banks, and third-party finance websites. The process is fast and quite simple. It involves some charges after paying the same, one can get the exact or estimated CIBIL Score for free.

• Official Portal of CIBIL:

• Open the website of CIBIL and then select the CIBIL score.
• Enter the contact details, name, identity proof, date of birth, PIN, etc.
• After providing the relevant information, select, accept, and proceed.
• An OTP will then be received on the mobile number registered with CIBIL. 
• Enter the OTP and click continue.
• Click the panel to check the CIBIL score.
• The official CIBIL website will redirect you to myscore.CIBIL.com, where one can click the member login option.
• After logging in to the account again, check the CIBIL score.

• CIBIL Mobile Application:

• Install the CIBIL application on the mobile phone.
• Complete the registration process on the application.
• After completing the registration process, log into the account.
• Check the CIBIL score.

• Third-Party Finance Websites:

• One can also check the CIBIL Score using third-party finances. They are free to use, there is no need to pay any additional charges taking into consideration the reliability and authenticity of the website. One can check the CIBIL score wherever, whenever, and as many times as they want to see it.

• Banks:

• Nowadays, some banks offer the facility to check CIBIL scores and reports. A few banks charge additional fees, while some offer the facility for free.

Factors Affecting the CIBIL Score of a Person

Below are the major factors that affect the CIBIL Score of a person:

• Repayment History
• Credit Utilization Ratio
• A Mix of Secured and Unsecured Credits
• Length of Credit History
• Multiple Hard Inquiries within a Short Span

Conclusion

So, it is always recommended to plan your future goals and cash available in hand well in advance. If you plan for your future goals and invest accordingly, the chances of credit or lending become minuscule. If you want to buy a home, it is always better to plan for the downpayment in advance and compare different home loan options. To plan for a home loan, you can use the ICICI home loan EMI calculator or any other bank provider’s EMI calculator. You can do the same for other loan options by using EMI calculators. Also, before applying for a credit card, do understand what your requirement is and then only apply for any credit card available in the market. Multiple loan or credit card applications can adversely impact your credit score as loan applications will always be visible on your credit file and banks will look at you as an irresponsible lender. Similarly, do not check your credit score frequently, as it can also negatively impact your credit score.