Regardless of the type of credit one applies for, be it secured or unsecured in nature, lending institutions will first assess an applicant’s credit behaviour to establish loan eligibility. It is done by evaluating the CIBIL score also referred to as a credit score. This unique three-digit number will lay the foundation for securing not just hassle-free loan approvals but also optimum loan amounts at lower interest rates that can make your repayments easier. 

Therefore, individuals who seek loans must understand their current CIBIL scores and try to match them with their lender’s requirements. Read on to learn more about your CIBIL score and how one may keep track of it.   

What CIBIL Scores Mean 

CIBIL scores, named after the nation’s first credit information bureau: Credit Information Bureau (India) Ltd. or CIBIL, measure your creditworthiness. Currently known as TransUnion CIBIL, it is widely associated with credit scores and financial data across the country. It releases vital credit details whenever required in the form of a comprehensive credit information report (CIR), which also carries a numeral summarising this data, better known as your CIBIL score. 

The CIBIL score range varies from 300 to 900 as shown below with the corresponding credit implications:

• A CIBIL score between 300 to 500 is rated as low

• Scores between 550 to 650 are considered average

• CIBIL scores in the range of 650 to 750 are regarded as good

• Scores between 750 to 900 are rated as excellent

The Ideal CIBIL Score for Home Loans

Since CIBIL scores represent your credit and monetary health, they should ideally be on the higher side, closer to 900, if you wish to avail of credit. For instance, the minimum CIBIL score for home loans is generally in the range of 750 and above. Lenders favour loan applications from such individuals offering them competitive rates since they are more likely to repay on schedule. As opposed to this, borrowers who possess lower scores may be given higher home loan interest rates and more stringent terms. 

When you apply for a loan, lending institutions will scrutinise your credit records and appraise the CIBIL score. Potential borrowers can check cibil scores beforehand to verify if they meet the lender’s qualifying standards.

What Is My CIBIL Score?

Most banks, lending companies and loan aggregators allow access to CIBIL score ratings within their online interface. One may also obtain it directly from credit bureaus like CIBIL through their official portal.

If you currently have a CIBIL account, just follow these simple steps:

• Log in to the website with your user details 

• Choose the ‘My Account’ button from the upper right corner of the home page 

• Click on the tab ‘Get your Free Report’ to receive your score

How to See Your CIBIL Score 

If you do not have an account with CIBIL, you may create one and view your score with the steps mentioned herein:

• Register yourself by entering your email address, password, phone number, etc. and generate your user details.

• Enter information as asked such as your date of birth, residence and identity verification using any official document like your PAN card, passport, driver's licence, voter ID, ration card and so on.

• Upon submission of the necessary data, CIBIL will provide a one-time password or OTP. 

• Use the OTP to access your CIBIL report and score.

Important Pointers Regarding CIBIL Score Checks

Although availing credit scores using the CIBIL portal normally requires you to pay a specific fee, borrowers are entitled to one free credit report annually. Those on a premium subscription can ascertain their scores anytime along with other services such as customised loan offers, credit monitoring and dispute support.

Every time you run credit score checks, it does not impact your credit report since it is considered a soft inquiry. However, when lenders pull up your credit score and report during loan processing, it will be regarded as a hard inquiry. This type of inquiry gets recorded in the credit history and your CIBIL score may go down if you submit loan applications to several lenders resulting in repeated hard inquiries. 

Summing Up

Lenders look at CIBIL scores as the primary criterion for inspecting an individual's ability to manage credit and repay on time. A good CIBIL score is a pre-requisite to landing the most favourable deals. Hence, monitor your credit records frequently to keep track of your score and spot any erroneous credit information, which could harm your score if left unattended. Furthermore, both aspiring and current loan borrowers must exercise responsible credit habits to always maintain appropriate credit scores.