Credibility or the potential to repay the debt on time and in full is assessed by reviewing your credit report. Your credit report contains a 3-digit numeric representation indicating your behaviour towards credit. This 3-digit numerical representation ranges between 300 and 900 wherein a score of 750 and above is denoted as a good score, which allows the lender and card issuers to trust on you and provide you with the required credit access. Note that to maintain a score of 750 and above, it is crucial for you to periodically check your credit score. To conduct CIBIL check online, you can either consider fetching your credit report through the online lending marketplaces or via the CIBIL’s site. Note that in the case of online lending marketplaces, monthly fetches for credit report are totally free. However, in the case of fetching your credit report from the CIBIL’s website, just one credit report is free every year. In case you want to fetch more than one report through the CIBIL’s website, then you must ensure to make the payment. Also, it is important to remember that for checking your score through the online lending marketplaces, you must provide your PAN card details. As your PAN card is required for checking your credit score through such marketplaces, these lending marketplaces are even called CIBIL score check online by PAN card free site. Through such online lending marketplaces, you may not just access your CIBIL score but also check scores of other credit bureaus too such as Experian, CRIF HighMark, and Equifax. Here’s a bit-by-bit explanation of what the score range denote–
| Range | Meaning |
| 750 – 900 | This score range is addressed as excellent. Lenders provide credits and loans at the lowest interest rate as this category is considered to have the lowest number of defaulters. |
| 650 – 749 | This score range is addressed as good. If you fall in this score range, you may not be able to leverage the best loan deal or negotiate as per your preference compared to if your score would have been over 750. |
| 550 – 649 | This score range is considered as fair. For this score range, the interest rates may be on a higher level. |
| 350 – 549 | This score range is considered as subpar. Finding a preferred credit card or loan offer may be extremely difficult. |
| NA / NH | This means ‘no credit history’ or ‘not applicable’ |
A good score is an important aspect as it provides the listed benefits –
· Allows you to obtain the preferred credit card that provides different variety of benefits and features.
· May get faster loan application approval. Lenders may readily and quickly accept your application for loan if you have a strong credit score.
· Lower rate of interest – If you are an individual with a good credit score, then you might bargain for a preferred i.e., lower rate on your loan.
· Loan may be inexpensive for you. Loans come with a lower processing charge, lower rate of interest and wide range of additional benefits.
Additional Read: CIBIL Score Check Online by Pan Card Free
How can you form a good credit score?
· Remain organised and meet all the deadlines on time
You as an individual must be consistent with your debt repayments and must meet all the deadlines in full by the due date. How you manage your unpaid debt has a massive impact on the computation of your credit score. Your credit rating may be affected, and you may even incur specific fines on late EMI repayments. Thus, if all your credit repayments are timely done, it would be advantageous for you to enhance your credit score.
· Use your credit wisely
Placing an application for several or multiple credit options at once may mean that you as a borrower are mired in a dreadful cycle brought on by the monetary shortage. Do not take a lot of debts at once and ensure to use the borrowed credit amount sensibly. You must request for just a few loans in a specific time-period. It would be recommended for you to repay your loan before availing another to avoid decline in your credit score.
· Ensure to monitor the borrowed credit
Submitting a new application for credit is something you must do if you literally need the funds and have the potential to repay the borrowed money on time and in full. It is prudent for you to refrain from using more than your allotted credit card limit. Also, it is recommended to use as much as 30 per cent of your overall credit card limit. Doing so, shows your healthy behaviour with credit and your disciplined borrowing attitude. Not being completely dependent on credit for all your needs, is actually good for building a good credit score. This is because just using the credit limit and not overutilizing it shows that you are not a credit-hungry individual thoroughly dependent on credit. It also shows that you have substantial liquid fund in your account, which you can use to repay your borrowed funds in full by the due date.
· Check the inaccuracies in your credit report
It is crucial for you to periodically check your credit score and immediately report any anomalies. On the rarest of occasion, CIBIL might include inaccurate info to your report, which may result in lowering of your credit score. Possible errors or mistakes may even include paid credits, which may be mentioned as unpaid. So, ensure to periodically check your credit report to detect such errors in your report. Rectifying such errors or mistakes in your credit report on time can increase your credit score, which may enhance your eligibility chances for various credit options.
· Form a creditworthy history over long term
The objective of using credit must not just be to use the borrowed proceeds in times of need, but to also repay the borrowed funds in full by the due date to boost your credibility and your credit score. Continued disciplined behaviour of timely repayments of your credit card dues and loan EMIs, shows you as a credible individual as well as enhances your credit score over time.
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