A CIBIL score is a numerical representation of your creditworthiness. It ranges between 300-900 and is a measure of your ability to repay the borrowed sum. You should always try to maintain a high CIBIL score to become eligible for availing loans and credit cards. A CIBIL score is calculated by the TransUnion CIBIL credit bureau which is licensed by the Reserve Bank of India. It is calculated after taking into consideration several factors like repayment behaviour and credit history.
What is an ideal CIBIL Score?
Majority of lenders like banks and non-banking finance companies (NBFCs) consider a CIBIL score of 750 and above as ideal. If you have a high CIBIL score, you become eligible to receive preferential pricing while getting a loan or a credit card.
Can I Get a Free CIBIL Score?
Yes. You can get a free CIBIL score from TransUnion CIBIL credit bureau. Since January 2017, the Reserve Bank of India (RBI) made it mandatory for all the credit bureaus in the country to offer one free credit report along with one credit score to consumers in a calendar year.
Can I Get a Free Credit Score?
Currently, there are three credit bureaus in the country including TransUnion CIBIL - Equifax, Experian and CRIF Highmark. You can avail free credit scores and credit reports from these bureaus in a calendar year. Your CIBIL report contains detailed information of all your present and past credit accounts. If you have taken any loan or have past credit cards, the records will be present in your credit report.
How to get a Free Credit Score from BankBazaar
- Visit the BankBazaar website
- Click on the “Get your Free Credit Score” tab on the home page
- Select your gender
- Add your birth date
- Select the city you live in
- Add the name of the company you work for
- Select your salary range
- Add your first and last name
- Provide PAN Card details
- Give your mobile number and email address
- Authenticate via OTP
- Your Credit Score will be displayed in detail
Can I get a credit card if I have a CIBIL score less than 750?
Generally, lenders avoid offering credit cards to consumers who have a low CIBIL score. If you have a low CIBIL score, you are at a higher risk of turning a defaulter. However, not all consumers have a low CIBL score consistently. Lenders will track your previous credit accounts and if you have been paying bills on time and maintaining a low credit exposure, you will still be considered for a credit. Even if you are hit with one setback in paying your credit card bills, you should make up for it at the earliest to improve your CIBIL score.
Will I get a credit card if I have no CIBIL score?
If you don’t have a credit card or have not taken any loan, you will have no CIBIL score. Banks and non-banking finance companies (NBFCs) will be reluctant to offer you a credit card as you have no experience in handling credit. However, there are still some lenders that will offer you a credit card, but the annual fees and other charges could be higher. A great way to start building your credit history is to get a secured credit card which is issued against your fixed deposit. A secured credit card works similar to a regular credit card.