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How To Check Credit Score For Free?

IndianMoney.com Research Team | Posted On Monday, January 21,2019, 01:43 PM

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How To Check Credit Score For Free?

 

 

Credit Score is a three digit number which depicts credit worthiness. Credit Score is calculated by considering all your past credit related transactions. RBI has authorized Experian, TransUnion Cibil, Highmark and Equifax to compute Credit Score and Credit Report in India. RBI has made it mandatory for all banks and financial institutions to share credit-related transactions with the authorized credit bureaus. TransUnion Cibil is the most popular credit bureau; Cibil score has a range of 300-900, with 900 being the highest.

SEE ALSO: How Can You Improve Your Credit Score By Availing Personal Loans?

Credit score eligibility criteria

All individuals who have availed credit from banks and recognized financial institutions, are given a Credit Score by the credit information bureaus. Individuals with no credit history have a Credit Score of -1. It takes up to 6 months from the date you have availed the loan to get your Credit Score, in this case your Credit Score will be 0.

Want to know more on Credit Score? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

How To Check Credit Score For Free?

Below mentioned factors influence Credit Score:

  • Age, Residential Address and number of IDs like Passport, Driving License and so on
  • Types of credit received (home loan, personal loan, vehicle loan and so on).
  • Length of credit history.
  • Credit repayment history, settlements and write-offs.
  • Number of recent Credit Score hard queries (enquiries made by banks and financial institutions on your credit history).
  • Total sum of credit availed and paid back.
  • Credit utilization.

SEE ALSO: How To Get My Cibil Report Online?

Documents required for free credit score

You must have PAN, phone number and personal details to check your Credit Score for free on IndianMoney.com. You don’t require any other documents to check Credit Score for free. PAN and mobile number are required to extract your Credit Report and Credit Score from the credit bureau.

How do I get my free credit score?

You can check free Credit Score on IndianMoney.com by following below mentioned steps:

  • Log on to https://indianmoney.com/credit-score.
  • Enter your details like name, address, PAN and so on.
  • Enter your phone number.
  • One Time Password OTP is sent through an SMS to your phone number, enter validate and proceed.
  • Accept the terms and conditions.
  • Your Credit Score will be displayed.

SEE ALSO: Cibil Score For Credit Card

Why sign up for IndianMoney to check Credit score?

IndianMoney has tied-up with Experian to offer free credit score. IndianMoney.com is India’s leading financial education company which was formed to curb the misleading sales practices rampant in the financial services sector. Our vision is to become the most admired and trusted financial education company in the World. It is important for us to keep the public, financially aware and give holistic financial education.  The mission of IndianMoney.com is to help people avail the right financial products, through personalized free financial education.

How Often Do Credit Scores Change?

Banks and financial institutions across India must share all credit related transactions with the authorized credit bureaus. Lenders share credit transactions on monthly basis. Both negative and positive reports on an individual’s credit transactions are shared. It takes up to 3 months from the day lenders share data with the bureaus to update your Credit Score.

How to improve your credit score?

Below mentioned are the steps to improve your Credit Score:

  • Check your Credit Score regularly: Checking your own score is called soft enquiry. Soft enquiries have no impact on your Credit Score, so check your credit score regularly and contact credit bureaus if there are any discrepancies.
  • Make repayments on time: It is critical to pay EMIs on time to get a good Credit Score. Delay in repayment, settlements and write-offs would negatively impact your Credit Score.
  • Limit your credit requests: Lenders would check your Credit Score when they receive application for credit in any form. This is called hard enquiry. Multiple credit requests show you to be credit hungry and in desperate need of financial support. This would raise concerns on your financial capabilities and lenders hesitate to sanction loans as multiple hard enquiries negatively impact Credit Score.
  • Limit your credit utilization: It is good to utilize less than 30% of your credit limit. For example if you have a credit card with a credit limit of Rs 1 Lakh a month, then try and spend less than Rs 30,000. Maximum credit utilization means you are credit hungry.
  • Minimum payments: This is the minimum amount that you need to pay your lender within the billing cycle + grace period, to avoid interest and penalties. Pay off all outstanding credit card dues within the billing cycle + grace period.
  • Try to avail secured loans over unsecured loans: It is good to have a ratio of 80:20 vis-a-vis secured vs unsecured loans. Secured loans have low interest rates as security/collateral is pledged.

 Frequently Asked Questions (FAQs):

Q. What is Credit?

A. Credit is defined as the money borrowed from a person/organization as debt, to purchase goods and services.

Q. How Does My Free Credit Score Check Affect My Credit?

A. Checking Free Credit Score does not affect your Credit Score in any way, it is called soft enquiry.

Q. Can I Check My Credit Score Every day?

A. Yes, you can check your Credit Score each day. It may take up to 3 months to update your Credit Score.
 

Q. Credit Report vs. Credit Score: What’s the Difference?

A. Credit Report is the summary of all your credit related transactions. Credit Score is a numerical representation of your credit worthiness.

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