A CIBIL score is a three-digit number representing your credit history and creditworthiness. Based on your credit history, lenders check online credit score to evaluate applicants for loans or credit cards. A high CIBIL score shows you are a responsible borrower with the potential to repay loans and credit card bills on time. This increases your likelihood of being approved for loans with favourable terms and interest rates. Conversely, a low CIBIL score could indicate you may be an unreliable borrower, and your loan or credit card application could be rejected or approved with unfavourable terms and interest rates.
Improving your CIBIL score is essential for maintaining a healthy financial life. This can be accomplished by making timely payments on all loans and credit card bills, not exceeding credit limits, and having a healthy mix of credit. It’s essential to understand what is CIBIL and regularly check online credit score to confirm there are no errors or discrepancies that could negatively affect your creditworthiness.
Important ways to improve your credit score
Improving your credit score can be challenging, but it is essential to check online credit score to achieve financial stability and secure loans or credit cards with favourable terms and interest rates. Here are five ways to improve your credit score:
Pay your bills on time
Late payments can significantly negatively impact your credit score. Make sure to pay all your bills, including credit card and loan payments, on time each month and regularly check online credit score on reliable platform such as Bajaj Finserv Credit Pass. Set up automatic payments or reminders if you struggle to remember due dates.
Keep your credit utilization low
Credit utilization ratio is the amount of credit you use in your credit card compared to your available credit. Aim to keep your credit utilization below 30%. This shows lenders that you can manage your credit responsibly and help improve your credit score.
Check your credit report for errors
Regularly check online credit score for errors, such as incorrect account balances or late payments that you have paid on time. Dispute any errors you find with the credit bureau to have them corrected.
Increase your credit limit
If you have a low credit limit, consider asking your credit card issuer to increase it. This can improve your credit utilization ratio if you don’t use the extra credit as an excuse to overspend.
Do not open too many new accounts
Each time you apply for new credit, it results in hard inquiry on your credit report, which can lower your credit score. Avoid opening too many new accounts simultaneously, and only apply for credit when needed.
Steps to check online credit score
Bajaj Finserv is an established financial services provider that offers various lending and investment products. One of their features includes the capability to check online credit scores through their official website. Understanding what is CIBIL and checking your credit score can be a beneficial step in maintaining good financial health and improving creditworthiness.
Follow a few easy steps to check online credit score on the Bajaj Finserv website
- Visit the official website of a financial institution such as Bajaj Finserv to check online credit score.
- Look for the option “Check Score.” Click on the link to check your online credit score.
- Log in using your Mobile number. You will receive an OTP.
- Enter OTP to verify your mobile number.
- Fill in all required information, such as your name, date of birth, PAN card number and contact details to check CIBIL Score.
- Verify that information has been entered correctly before submitting the form.
- You need to wait until your CIBIL score is generated, and it can be viewed on the dashboard available online.
In addition to checking your CIBIL score on the official Bajaj Finserv website, you can access this information through their Bajaj Finserv Credit Pass services. This service provides the facility of unlimited credit score checks for just Rs 99 per year. To use the Credit Pass service, you must sign up for an account on the Bajaj Finserv website and pay the annual subscription fee. Once you have subscribed, you can check your credit score as often as you like throughout the year without additional charges.
Final Thoughts
CIBIL score determines your creditworthiness and financial health, so it is very important to know what CIBIL is and how it works. A high CIBIL score indicates that you are a responsible borrower likely to repay loans and credit card bills on time. In contrast, a low score may negatively impact your ability to secure loans or credit cards with favourable terms and interest rates. It is important to regularly check online credit score on Bajaj Finserv Credit Pass to ensure no errors or discrepancies could negatively impact your creditworthiness. By improving your credit score, you can achieve financial stability and peace of mind and be on your way to achieving your financial goals.