The CIBIL score plays a significant role in determining your creditworthiness for any type of credit, be it a loan or a credit card.
When you apply for a loan or a credit card, the potential lender assesses your credit eligibility based on various parameters. The credit score or CIBIL score is one of the most important factors the lenders look into while reviewing your loan application.
What Is a Credit Score?
The credit score is a numeric representation of all the credit information included in the CIBIL Credit Information Report (CIR).
Do You Need a PAN Card to Check the CIBIL Score?
A PAN Card is not mandatory to check your CIBIL score. Your other identity proof like voter ID, passport number, or driver’s license, is good enough to get the credit score and credit report. However, PAN Card is a common document that identifies you with a unique number and is associated with all types of financial and bank accounts of most people. It is also a mandatory document while applying for a loan or credit card from banks and other financial institutions.
Using your PAN Card to check your credit score makes it easier for the credit bureaus to locate your details efficiently with the assurance that your PAN Card will not be used for any other purpose other than locating your credit information and authenticating it with the help of other associated details.
Steps to Check CIBIL Score by Using PAN Card
- Visit CIBIL’s official website https://www.cibil.com/
- Click the ‘Get Your Credit Score’ button which is on the top right of the page
- Or, you can directly visit https://www.cibil.com/creditscore/ directly
- Choose a subscription method, if applicable
- Enter details like your full name, date of birth and gender
- In the identity proof section, enter your PAN Card number
- In the next section, enter your phone number, address and your email
- Enter the captcha code
- Accept the terms and condition
- Click on “Proceed to Payment’
What If You Don’t Have a PAN Card?
If you don’t have a PAN Card, follow these steps to get your CIBIL score and report.
- Visit https://www.cibil.com/creditscore/
- Click on the ‘No PAN?’ button. You will be redirected to another ‘CIBIL online credit score request form’ page.
- Select the product you want to purchase
- Enter your personal details like full name, gender, and date of birth
- Choose the identity proof – such as passport, voter ID or driver’s license – you wish to use instead of the PAN
- Card and enter its number
- Enter your contact details such as an address, phone number, and email address.
- Submit your request
- You’ll receive your CIBIL score and report in your inbox
Impact of PAN Change on CIBIL Score
PAN Card is your identity proof in all types of financial transactions. If your PAN Card gets lost or stolen, request for a replacement. The new PAN Card will have the same number; hence it won’t have any effect on your CIBIL score. That said, if you have two PAN numbers, it is advisable to surrender one to avoid further complications.
Since the credit score is based on your credit history, which is mapped to your multiple banking transactions, and personal details like address, date of birth, etc., getting a new PAN might affect your CIBIL score – the CIBIL’s intelligence system may show a red flag on your account.
What Is a Good CIBIL Score?
A CIBIL score of 750 or above is considered a good credit score. With a good credit score you can get easily approved for any type of credit/loan and can get these loans and credit cards at low-interest rates and favourable loan terms.
What Is a Bad CIBIL Score?
A CIBIL score in the range of 350 to 549 is considered a bad credit score. With a bad CIBIL score, it gets difficult for you to get a loan or credit card approved as lenders perceive you as a high risk of defaulting on a loan.
What Are the Factors That Affect the CIBIL Score?
Following are a few of the major factors that impact your CIBIL score:
- Repayment History
- Too Many Hard Enquiries
- High Credit Utilization
- Right Credit Mix
Making late payments or defaulting on your EMIs repeatedly affects your CIBIL credit score negatively.
Multiple loan or credit card applications adversely affects your credit score as each lender pulls up your credit report to assess your creditworthiness. When there are too many hard enquiries registered, the lenders review your application with caution.
If the outstanding balance on your credit cards is high, it means that your debt burden is high too. This affects your CIBIL score adversely.
A balanced credit portfolio of secured (home loan, car loan) and unsecured (personal loan, credit cards) loans positively affects your CIBIL score.
Why Should You Check Your CIBIL Credit Score Periodically?
You need to make it a habit to check your credit score often as there might be errors or inaccurate details reflecting on the credit report.
Common credit report errors you need to watch out for:
- Identity errors
- Account errors
- Balance errors
- Duplication errors
- Fraudulent accounts or transactions
How to Solve CIBIL Credit Score Disputes?
Any irrelevant information or errors on your credit report can have an impact on your credit score. So, if you see any transactions or information that doesn’t belong to you, then you should contact the credit bureau or credit institution immediately. Below are the steps to raise a dispute:
- Analyse the issue correctly.
- Fill the online dispute resolution form on the credit agency’s website.
- Submit the form, and you’ll receive the dispute ID.
- The credit bureau will send your correction report to the particular lender or the credit institution.
- When the lender confirms the errors, the credit bureau will make the necessary changes in the credit report.
- The entire process takes around 30 days
- Once the dispute is resolved, you will be intimated by the credit agency via email.
How to Take Your Name off the Defaulter List?
If your name appears in the defaulter’s list, your credit score gets affected. This means that your loan application process may also get affected. Before you apply for any loan, make sure that you figure out the reason why your name appears in the defaulter’s list and then take measures to clear it off. Follow the below-mentioned steps:
- Get your free CIBIL credit report and carefully go through it.
- Find out the pending amount and clear it off.
- Request for a ‘No Due Certificate’ from the respective bank.
- Once you receive the certificate, submit it to the credit bureau, requesting them to clear your name from the defaulter’s list.
- The credit bureau will intimate you when they take off your name from the defaulter’s list.
- Once your name is cleared off, submit your loan application with a copy of all the supporting documents.
Your credit score is not just any number. It can unlock the best of loan and credit card deals for you. Want to check your CIBIL score? Click here.