Considering the idea of checking your free CIBIL score on external websites? Remember, in the world of finance, there are no freebies. These websites provide a complimentary CIBIL score and report, but their main goal is to lure potential customers and collect your data. Once they have your details, they gain access to your financial profile, including your spending habits, commitments, and financial capabilities. Find out how to access your CIBIL score directly from the official source and steer clear of those bothersome loan offers.
The Context
In today’s world, the monetization of financial data is at its peak. It’s become so extensive that even information you willingly share about yourself can be turned against you. To put it simply, this data can be synthesized to influence your behavior or subtly guide you in various directions.
Now, you might be wondering why we’re sounding a bit alarmist with this ‘world is ending’ tone. To provide some context, a few days ago, we were researching CIBIL scores and innocently typed the query ‘How To Check free CIBIL score‘ into Google. What we found was a surge of third-party websites fiercely competing to decipher the intricate realm of SEO algorithms and provide this service at no cost. The leading players in this arena included BankBazaar, Bajaj Finserv, PaisaBazaar, Axis Bank, CRED, Freecharge, IIFL Finance, and countless others.
What’s really going on here?
Hey, remember this classic rule from the 2006 flick ‘Khosla Ka Ghosla!’ for maneuvering through the unpredictable underbelly of investments and financial antics – आप पार्टी हैं या ब्रोकर?
What’s a CIBIL Score anyway?
CIBIL, short for Credit Information Bureau (India) Limited, is a simple representation of how effectively you manage your finances. It’s essentially a three-digit numerical summary that assesses your creditworthiness, ranging from 300 to 900. CIBIL is a credit rating agency authorized by the Reserve Bank of India (RBI) to provide these scores.
In India, there are four primary credit bureaus, with CIBIL being one of them. CIBIL has strong affiliations with major banks, Non-Banking Financial Companies (NBFCs), and housing finance firms. The other prominent bureaus include Experian, Equifax, and CRIF Highmark, each licensed by the Reserve Bank of India.
Your CIBIL score essentially reflects your credit rating and serves as a critical factor in the approval of credit cards and loan applications. It considers various aspects of your credit history, such as outstanding debts, credit card payments, repayment history, the number of credit accounts, and credit utilization information.
Who Uses CIBIL Score?
A strong credit score is a must when you’re seeking loans or credit cards. Lenders use this score to determine your creditworthiness, and having a score of 750 or higher greatly improves your chances of quick approval.
To boost your CIBIL score, make sure to repay debts on time, manage your debt-to-income ratio wisely, and avoid applying for multiple loans or credit cards at once, as this can be seen as a sign of excessive credit-seeking and negatively impact your score.
For more in-depth tips on enhancing your CIBIL score, you can explore our detailed article by clicking here.
What’s the Real Deal?
CIBIL, despite being authorized by the RBI, is essentially a private business that operates on revenue. However, the government has mandated that credit information companies like CIBIL must provide one free CIBIL score report to an individual each year. You can access this by visiting their website and following the instructions provided below.
But if you’re quite eager to keep a frequent check on your credit score, just like watching a stock market ticker, CIBIL offers three subscription services. The Basic plan costs Rs. 550 per month for a one-time report, the Standard plan is priced at Rs. 800 for 6 months and includes 2 reports, and the premium plan, the most comprehensive, costs Rs. 1,200 for a year, providing 4 detailed reports.
In our view, receiving one annual report is sufficient, especially if you’re considering applying for a home or vehicle loan. Having knowledge of your credit score can be advantageous when negotiating loan interest rates if that’s an available option.
How To Check Directly from CIBIL
Here is how you can do that:
- Visit the official CIBIL website.
- Choose the ‘Get your free CIBIL Score‘ option.
- Enter your personal information: name, email ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar, or Voter ID). Provide your PIN code, date of birth, and phone number.
- Click on ‘Accept and continue.’
- You will receive an OTP on your mobile number. Enter the OTP and click ‘Continue.’
- Select ‘Go to dashboard‘ to access your credit score.
- You’ll be directed to the website myscore.cibil.com.
- Click on ‘Member Login‘ and after logging in, you can view your CIBIL score.
Conclusion
While the concept of knowing your CIBIL score might pique your interest, its practical usefulness mainly pertains to applying for loans from financial institutions. Occasionally, local financial organizations might also use it to conduct background checks on potential employees before extending job offers.
Frequently checking your free CIBIL score on third-party websites often involves sharing your private details, which can make you a target for unwanted sales pitches and offers. If you’ve been responsible with your finances, consistently meeting your bill and EMI payments, chances are your CIBIL score is in good standing.
Alternatively, if you’re eager to find out your score, consider going directly to the source to obtain the information you’re looking for.
We hope this information enhances your understanding of personal finance.
Share your data responsibly!
1 Comment
Very detailed information. Everyone must give this article a good read.