Checking your credit score is crucial in securing loans, especially for students taking an education loan to study abroad. One can check credit scores via credit bureaus like CIBIL, Equifax, Experian, etc. or banks and financial institutions. Getting your CIBIL report is important as you can report errors (if any) and take corrective measures.
A high credit score (above 700) increases your chances of loan approval at lower interest rates. However, if you notice a low credit score, it means it can lead to loans at higher interest rates or application rejections. Let’s explore all the details about how to check credit scores.
Table of contents
What is a Credit Score?
A credit score or a CIBIL score is a three-digit number that ranges from 300 to 900. It determines the creditworthiness of the applicant. The credit score reflects your financial health and ability to repay loans or credit obligations.
A higher score means you can pay your loan EMIs on time. A lower score means you may face challenges in securing loans. In short, it is essentially a summary of your credit behaviour. It is calculated based on factors like:
- Payment History: Whether you pay your loans and credit card bills on time.
- Credit Utilization: The percentage of credit you use compared to your total credit limit.
- Length of Credit History: How long you’ve been using credit.
- Types of Credit: A mix of secured loans (e.g., home loans) and unsecured loans (e.g., credit cards).
- Recent Inquiries: The number of recent applications for loans or credit.
How to Check Your Credit Score?
There are many ways to check credit score. You can do so by obtaining CIBIL reports/ statements from banks or credit bureau websites. Many financial apps also provide access to download credit score reports. Regularly checking your credit report helps you identify any inaccuracies like Days Past Due in the CIBIL report.
Check out the ways to check your credit score and the steps to follow while obtaining it-
Credit Bureaus
In India, there are four main credit bureaus where you can check your credit score through CIBIL (Credit Information Bureau India Limited), Equifax, Experian, CRIF High Mark, etc. Some bureaus may offer a free credit score check once a year, while others might charge a nominal fee for detailed reports.
Follow the steps to check your credit score through credit bureaus-
- Visit the official website of the chosen credit bureau (e.g., CIBIL).
- Create an account or log in if you already have one.
- Enter required details such as your PAN, Aadhaar number, date of birth, and phone number.
- Answer verification questions related to your credit history.
- Access your credit report instantly.
Bank or Financial Institution
Many banks and Non-Banking Financial Companies (NBFCs) provide free credit score checks as a service to their customers. All you need to do is to log in to your internet banking or mobile banking app.
- Look for options like “Check Credit Score” or “Credit Health Report.”
- View or download your credit score directly from the app.
Through Credit Score Apps
Another way to check credit scores is through FinTech platforms. This can be a convenient and efficient way to monitor your financial health. However, it’s essential to ensure that you use reputable services to protect your personal information.
Several reputable platforms and apps like Paisabazaar, BankBazaar, Wishfin, Paytm, and CreditMantri offer free credit score checks, including. These apps are safe to use. They provide access to your credit score along with many offer additional features like score explanations, and suspicious changes in your credit report.
- Download the app or visit the website.
- Enter personal details such as your PAN card number and contact information.
- Verify your identity with an OTP (One-Time Password).
- Get your credit score instantly displayed on the platform.
The table below talks about the best apps to check your credit score online-
| App Name | Key Features |
| CIBIL Score & Report | – Access to your CIBIL score and report – Alerts for significant changes in your credit profile – Tips for improving your credit health |
| Paisabazaar | – Free access to your credit score – Personalized loan offers based on your credit profile – Tools to compare various financial products |
| BankBazaar | – Free credit score check – Detailed analysis of your credit report – Recommendations for suitable financial products based on your score |
| Experian Credit Report & Score | – Free access to Experian credit report and score – Credit monitoring alerts for changes – Breakdown of factors influencing your creditworthiness |
| OneScore | – Access to scores from multiple bureaus – Personalized recommendations for score improvement – Alerts for any changes in your credit report |
Also Read: Check here all the major details about personal loans with low CIBIL scores. Know how to get the loan and other details.
Understanding Credit Score
Once you obtain your score, it is important to know what the three-digit number means. A higher CIBIL score for personal loans or any other type of financial assistance indicates better creditworthiness and more chances of securing loans at competitive interest rates.
A low score indicates a risky profile to the lender. In such a case, you must improve your credit score by adopting effective strategies.
| Score Range | Rating | What It Means |
| 750 – 900 | Excellent | You are highly creditworthy. Lenders will offer loans at lower interest rates and favourable terms. |
| 650 – 749 | Good | You have a good credit history. Loans are likely to be approved but not at the best rates. |
| 550 – 649 | Fair | You may face challenges in securing loans. Interest rates will be higher. |
| Below 550 | Poor | You have a risky credit profile. Loan applications may be rejected, or you may need a co-applicant. |
Tips to Improve Credit Score
Improving your credit score takes consistent effort and financial discipline. This helps in quicker loan approvals, more negotiation with lenders on interest rates, and flexible loan terms and conditions. Some of the ways to improve your CIBIL score include regularly monitoring your report. Check out some other effective tips to improve your credit score-
- Avoid taking too many loans. Take a loan only when necessary because each loan or credit card application triggers a hard inquiry, which can lower your score temporarily.
- Always pay credit card bills, loan EMIs, and other dues by the due date. Set up automatic payments or reminders to avoid late payments, which can lower your score.
- Use less than 30% of your credit limit on credit cards. For example, if your credit card limit is INR 1,00,000, aim to use INR 30,000 or less.
- Use a combination of secured loans (e.g., home loans, car loans) and unsecured loans (e.g., personal loans, education loans). A balanced credit mix shows you can handle different types of credit responsibly.
- Obtain your free credit report from credit bureaus like CIBIL, Experian, or Equifax. Review the report for errors, such as incorrect account details or payments not recorded. Dispute inaccuracies promptly to avoid unnecessary score drops.
- Pay off debts in full rather than opting for settlements, which negatively impact your score. If you’re struggling to repay, opt for an education loan restructuring or the restructuring of the type of loan you have taken for a manageable repayment plan.
Also Read: This blog includes details about the Impact of Loan restructuring on Credit Score. To know more about it read the blog.
Knowing how to check your credit score is vital for maintaining good financial health and ensuring you are prepared for any future borrowing needs. By utilizing these methods, you can stay informed about your credit status and take proactive steps to improve it if necessary.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
A credit score is a three-digit number that reflects your creditworthiness, typically ranging from 300 to 900. It helps lenders assess your ability to repay loans.
You can check your credit score for free through the official websites of credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark, which offer one free report annually.
To check your credit score, you typically need to provide personal details such as your name, date of birth, PAN number, and contact information.
It’s advisable to check your credit score at least once a year or more frequently if you are planning to apply for loans or credit cards.
No, checking your credit score is considered a “soft inquiry” and does not impact your credit score. However, lenders performing a hard inquiry can lower it.
Key factors include payment history, credit utilization ratio, length of credit history, types of credit accounts, and recent inquiries into your credit report.
If you find inaccuracies in your credit report, contact the relevant credit bureau immediately to dispute the errors and provide supporting documentation.
You typically receive your credit report instantly after completing the verification process on the bureau’s website or app.
While many services offer free annual checks, some platforms may charge a fee for detailed reports or additional features like monitoring services.
The CIBIL score is a specific type of credit score provided by TransUnion CIBIL Limited in India. The term “credit score” can refer to scores generated by any of the major bureaus.
Several reliable apps allow you to check your credit score, including CIBIL Score & Report, Paisabazaar, BankBazaar, Experian Credit Report & Score, and OneScore. They provide instant access to your credit score along with personalized insights and recommendations for improving your credit health.
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