The banks and other financial institutions submit your credit related information to the credit bureaus on a monthly basis. The credit information submitted by the banks comprises of a list of all your repayments, details of approved/rejected applications for loans and credit cards, credit card limit and credit utilization ratio and the status of the credit accounts.
This data is analyzed through an algorithm and the credit score is calculated. The credit score is a 3-digit summary of credit worthiness. A credit score of 750 and above is a good score to have, as it indicates that you have a good track record of fulfilling loan obligations. A low credit score signifies that you do not have a good history of making repayments and there’s a possibility of default.
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PAN or Permanent Account Number is a unique identification document, issued by the Income Tax Department to residents of India. This helps the income tax department, keep track of the financial transactions as PAN is linked with bank accounts. Follow the below mentioned steps to check CIBIL Score by using your PAN card:
Using PAN card for viewing your CIBIL report makes the process really simple.
Knowing your credit score helps stay informed and make wise decisions vis-à-vis loans and credit cards. The Credit report is a track record of repayments of loans and credit cards. Credit score reflects your credit position.
It tells you about the debt owed and the outstanding amount of your loan accounts and credit cards. If your credit report shows low credit score, then you can take active measures to improve your credit health.
By going through your credit report regularly, you can ensure that the information reflected in the report is accurate. If you find any mistakes in the report, get in touch with the bank to get errors rectified.
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Always keep in mind that your credit score affects loan approval. If you have a high credit score, you will be in a position to bargain for lower interest rates and moderate terms and conditions. A CIBIL score that ranges from 750 and above means you have an excellent track record of repayments. A person who has this score can easily get any kind of loans.
A CIBIL score of 700-750 is also considered good, but do improve it before applying for a home loan. A CIBIL score in the range of 300-500 is considered to be a low CIBIL score that reflects missed payments or defaults.
A high CIBIL score is one of the main factors that banks consider before sanctioning a loan. A CIBIL score of above 700 is considered to be a good score for getting a personal loan from leading banks in India.
SEE ALSO: CIBIL Score: Know Everything About it?
If an individual has defaulted on loan payments, the CIBIL score would be quite low. A low score can reduce the chances of securing loans from banks and NBFCs in the future. In case any bank or NBFC offers loan to a person with low CIBIL score, they are likely to charge very high interest rates.
Once the CIBIL registers a negative mark in the event of delayed payment or a default, it may hamper your chances of getting a loan for years to come. In such a case a person can opt to rebuild the credit score, by being responsible and paying existing loans and credit card dues.
There are various online websites that allow you to check your credit score for free. You can check your credit score by visiting their sites and providing the required details. These sites calculate your CIBIL score quite accurately. If you want to check your CIBIL score online, follow the steps given below:
Get Free Credit Report by visiting the IndianMoney website and following the below mentioned steps:
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