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Free Credit Score

IndianMoney.com Research Team | Updated On Wednesday, December 05,2018, 02:58 PM

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Free Credit Score

 

 

Credit score is a three digit summary of credit history. RBI has allowed Credit Information Companies registered with it under Credit Information Companies (Regulation) Act, 2005, to assign credit ratings and credit score to you and other borrowers of banks, NBFCs and Financial Institutions. Credit Information Bureau India Ltd. popularly called CIBIL or TransUnion CIBIL, Experian, Equifax and HighMark are the popular Credit Information Companies in India.

If you want to know how credit scores are set, read this passage. Credit scores are assigned based on track record of repayments, credit behavior, social background information, age of credit or how old credit card is, number of loan accounts, reasons for availing loans, types of loans availed and credit card usage among others. These and some other parameters are put together and fed into a complex statistical proprietary model. An algorithm weighs each of these components based on weights assigned and arrives at the credit score.

What is a Credit Report? A credit report is your credit history with detailed information on loans and credit cards, late payments if any, bankruptcies and track record of repayments. It contains personal information, contact information, employment information, accounts information, enquiry information and so on. Credit Score is basically a three digit score of your creditworthiness. It is very important for loans like home loan, car loan, personal loan, commercial vehicle loan and two wheeler loans to get sanctioned.

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Free Credit Score

Why credit score matter? Let’s take a look at some of the benefits of a good credit score.

  1. Quick Loan and credit card approval: When you apply for a loan, banks check credit score. If credit score is good, loans may be easily sanctioned. A bad credit score leads to outright rejection. Banks issue credit cards after checking credit score.
  2. Loans are availed at low interest rates: A good credit score means banks are open to negotiation. You can negotiate and avail car loans, home loans, personal loans or commercial vehicle loans at lower interest rates. A bad credit score means you have to avail loans at higher interest rates.
  3. Higher Loan amounts sanctioned: A good credit score means banks are willing to sanction higher loan amounts.
  4. Longer repayment period: Banks are flexible and open to negotiation if you have a good credit score. You enjoy a longer repayment period to repay loans.

1. How to check credit score?

CIBIL Score is assigned based on Credit Information Report or CIR. You get CIBIL score between 300 to 900. CIBIL score of 700 or more is considered good. Let’s understand how to check CIBIL score.

  • Go to the CIBIL website and click on, Get your free CIBIL Score and apply for a customized loan.
  • You then fill up the form on CIBIL official website.
  • You have to enter personal details like name, email ID, address and contact number.
  • Pay a nominal fee and collect CIBIL TransUnion Score and Credit Information Report (CIR).
  • Submit the form, pay the fees and get CIBIL Score and Credit Information Report in email.

SEE ALSO: What is General Insurance?

  2. What is Experian score?

Experian Credit Information Report gives loan history, identity information, credit accounts, loan accounts and credit cards, track record of payments and recent enquiries. Experian CIR has your name, address, date of birth and PAN along with type of loans, date of loan, loan balance, payment history and defaults if any. Based on Experian Credit Information Report, you are assigned Experian Credit Score between 330 to 830. A high Experian Credit Score means banks sanction loans quickly. Banks and Financial Institutions send customer credit information to Experian each month.

3. Steps to check Free Experian Credit Score?

You can check Free Experian Credit Information Report and Experian Credit Score Online. You can get Experian CIR and Experian Credit Score by paying Rs 399 (includes tax) through DD or NEFT. Pay Rs 138 through DD drawn in favor of ECICI Private Limited for just Experian Credit Score.

Step 1: Download Experian application form

Step 2: Fill name, date of birth, current address, permanent address and other requisite details and sign the form.

Step 3: Give self attested photocopies of Identity Proof like PAN, Passport or Voter ID and Address Proof like Passport or Electricity/Water Bill.

Step 4: Pay Rs 138 via DD or Internet/Mobile Banking.

Step 5: You send the completed signed application with attested Address and Identity Proof to the following Address:

Experian Credit Information Company of India Pvt Ltd

P. O. Box. 9096,

Goregaon (East),

Mumbai - 400063.

Step 6: After online authentication, you can see Experian Credit Information Report and Experian Credit Score, Online and in Real Time. A copy is mailed to verified email address.

SEE ALSO: Everything You Need to Know About Endowment Policy

4. How to improve credit score?

Make repayments in time: Clear loan EMIs and credit card dues on time.

Check credit report regularly: Make sure to apply for free Experian Credit Score regularly. Checking Experian Credit Score regularly doesn’t affect credit scores.  IndianMoney has tied-up with Experian to give FREE Credit Score. Get your FREE Credit Score Report on IndianMoney.

Avoid hard enquiries: If you apply for multiple loans simultaneously, banks believe you are credit hungry affecting credit score.  Inquiries made by lenders because of an application you made for credit card or loan can affect your score. 

Limit Credit Utilization Ratio: Avoid utilizing credit card to the limit. Using more than 50% of credit card limit indicates financial indiscipline. Make sure there’s enough money to repay debt.

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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