CIBIL stands for the credit information bureau of India Ltd. and is India’s oldest credit information proving institution.
CIBIL score forms the foundation of your credit worthiness. It is a 3 digit number within the range of 300-900. Higher the value, higher the credit worthiness of the individual. It essentially is a numerical value representing the confidence in one’s ability to pay back the loan amount to the lender. Calculation of CIBIL score takes into account a multitude of factors such as repayment patterns, length of credit history, number of open accounts, debt levels, percentage of available credit being used among others.
The CIBIL score of an individual determines how much credit a person receives and at what rate. It also subsequently determines the lender’s decision on the tenure for which the loan amount will be provided.
Generally speaking, a CIBIL score above 700 is considered to be a good CIBIL score and ensures easy procurement of loan amounts.
What is the cibil score in HDFC Bank?
The CIBIL score is within the range of 300-900 and any score above the 700 mark is considered to be good enough to get loans approved. Although for some loans, the cut off might be slightly higher. Higher the credit score, higher the probability of getting your loan approved as it indicates responsible repayment pattern.
Why is checking the latest credit score a must?
Here are some reasons why one should check their credit score regularly:
- Keeps you updated:
- Easy to identify errors:
- Identify fraudulent activity:
- Helps keep track of credit utilization ratio:
One can be aware of the latest standing of their credit status, credit dues, payment history so and so forth if the report is checked regularly. This is especially important if you are planning to apply for a new line of credit in the near future.
If the credit score is kept track of one can easily pin-point some error in the information provided which can potentially harm your credit score. One can raise a dispute with the bureau faster and get the eros rectified in time so that the credit score does not take a toll.
Checking the credit score on the regular helps one keep track of any enquiries/ requests for a new line of credit made on your behalf, which in fact you did not make. These must be brought to the immediate attention of the authorities or else they have the potential to negatively impact the credit score.
In order to secure a high CIBIL score, the credit utilization ratio must not be more than 30%. If the credit utilization ratio is higher, it again negatively impacts the credit score. Hence, reviewing the credit score on the regular helps keep track of the utilization rate.
All of these factors combined significantly increase the chances of getting a loan approved from the bank and also chances of being offered a better offer on the loan provided. Moreover, it helps people take charge of their finances and sets them up on a path of financial stability.
What details are needed to obtain CIBIL score from hdfc bank?
Listed below are the details needed to obtain the CIBIL score:
- Go to CIBIL website
- A form will be presented in which details such as name, contact details, Email will have to be provided
- In the next step identification proof and details for the same will have to be provided. Enter PAN card details and move to the next step
- Questions around your credit card history and other dues will be asked, based on which CIBIL score will be generated along with your entire credit report.
In this process, you will be suggested various paid subscription packages in a scenario where more than one credit report is needed in a year. You can choose to press no and continue with the process and get your free one time CIBIL report for the year.
It is advised to check your CIBIL score multiple times in a year as the score fluctuates with every new credit of line taken or payment made.
Why is it free?
The Central bank of India – RBI, has made it compulsory for all the four credit information companies of the country to allow the customers to check their credit report and credit score for free,once every year. HDFC bank is a registered partner of CIBIL and hence one can obtain one free credit report every year on HDFC.
What are HDFC bank’s requirements for CIBIL score?
Following CIBIL score ranges are needed by HDFC bank for loan approval:
- Personal loan:
- Home loan:
- Car loan:
A CIBIL score between 700-750 is considered to be ideal for a personal loan, with 700 being the minimum score needed.
A CIBIL score between 720-750 is preferred to get a home loan approved from HDFC. Higher the better.
Minimum CIBIL score of 700 is needed for getting a car loan approved from HDFC.
Instructions on how to check CIBIL score on HDFC:
Here is how one can check their CIBIL score on HDFC:
Click this link, and you will be redirected to the page where the following details will be required from your end.
Register yourself on the page first by providing your Email address and password for the same.
Next, enter the following details in the same way as they appear in your bank records:
- First name
- Last name
- Select an identification proof type (Eg: Aadhar card, PAN card, Password and so on)
- The provide the ID number for the same
- Date of birth
- Mobile number registered with bank account
Once all these details are provided, you will be required to verify your identity with an OTP will be sent on your registered mobile number and registered Email ID. Once, you get verified,you will be asked questions about your credit history and loans taken. Once all these questions are answered your CIBIL score will be generated.