According to reports, the volume of personal loan accounts saw a massive growth of 133.9% in 2019, as more individuals were inclined towards credit products to meet their financing needs. Two of the critical reasons for this immense growth have to be easy funding access as well as the present transparent system that all the financial institutions are following of late.
The increasing penetration of digital India initiative has further enabled borrowers to track all their account activities online, including checking their CIBIL score. Since it comprises a borrower’s credit history and how the account has been maintained, one needs to check credit score to be aware of any repayment loopholes.
CIBIL score and its significance
This three-digit numeric summary that determines a borrower’s creditworthiness generally depends on several credit-related factors. From meeting the credit score range to consistently maintaining it, you should be aware of certain things that can affect your personal loan approval.
Generally, an ideal credit score is expected to be 750 and above to be eligible for personal loans. In the absence of this, there are so many immediate and long-drawn shortcomings borrowers often struggle with like late approval of the loan, degrading credit profile, etc. In some cases, the loan application can also get rejected if the credit score is not up to the mark.
Here is how you can maintain your credit score by paying heed to a few important elements:
- Make sure you are paying your monthly instalments in time to keep the debt in check.
- Avoid closing your old and well-maintained credit card account as it would leave a positive impact on your credit history.
- Try not to max out your credit limit as it will help you to pay off your debt easily and keep your CIBIL score high.
- It is equally essential to choose the right kind of credit card that suits your financial needs so that you don’t have to face unnecessary charges.
Apart from these, aspects like building a steady income portfolio and restricting multiple card enquiries also play vital roles in enhancing your CIBIL score. It is equally necessary to read the credit bureau reports Innovis to identify minor mistakes recorded therein, or unnecessary charges levied.
Steps to check credit score for free
Here are some simple steps you are required to follow to check credit score online without paying any charges:
Step 1: Visit the online portal of your preferred financial institution and register yourself.
Step 2: In the next step, you need to share some basic details about yourself and verify your identity. An OTP will then be sent to your registered mobile number or email ID which you need to submit for the verification.
Step 3: After that, you can simply select the ‘Check Your CIBIL Score’ option to go through the complete information regarding your credit score and report.
Most financial institutions have certain eligibility criteria for the borrowers where the expected credit score range remains specifically mentioned. Holding a decent CIBIL score for personal loan, one can easily attain multiple benefits offered by lenders like Bajaj Finserv.
One such facility is the pre-approved offer provided by the lender to make financing hassle-free and less time-consuming. These offers are available on several financial products like personal loans, business loans, credit cards, etc. You can easily check your pre-approved offer by providing basic details like name and contact number.
Certain mistakes should further be avoided while applying for a personal loan, whereby holding a low CIBIL score is one of them. Therefore, it is advisable to check credit score and credit report from time to time so that you take the necessary steps in time for easy approval of these advances.