How to Check your CIBIL Score Online, Its Benefits, Affecting Factors and More!

In 2023, India showed a 73% rise in the self-monitoring of credit scores, according to a report by TransUnion CIBIL.

What is the reason for this increase in credit discipline? Depending on the intent of the credit score or CIBIL score check, the benefits were shown to include improved credit profiles and access to better credit offers.

A higher CIBIL score not only increases your chances of loan approval but also puts you in a better position to negotiate for lower interest rates and flexible loan tenures. This article will walk you through how to check your CIBIL score online, all the benefits of doing so, and tips to improve your score.

Overview of CIBIL Score

A credit score is a 3-digit numeric summary that represents your creditworthiness, or how likely you are to repay a debt. It is based on your credit history, including your history of paying bills and how much debt you have. The credit score can be provided by any of the 4 credit bureaus in India, of which the most popular is CIBIL (Credit Information Bureau (India) Limited). Therefore, a credit score is also commonly referred to as a CIBIL score. It ranges from 300 to 900, with your credit rating being better the closer it is to 900.

Range of CIBIL Score

Please note that this information is only indicative and different lenders may have different ranges/interpretations.

Factors Influencing CIBIL Score

Let us have a look at some of the most major factors that can affect your CIBIL score.

Payment history

This is one of the biggest factors that affect your CIBIL score. It displays how disciplined you are with repayments of credit card bills, loans, etc. Timely payments will have a positive impact on your CIBIL score, while missed payments or loan defaults will lower it.

Length of Credit History

This essentially indicates how long you have been in the credit system. A longer history with responsible borrowing behaviour generally has a positive effect on the CIBIL score.

Credit Utilisation Ratio

This ratio reflects the amount of credit you are using against the credit limit that is available to you. The lesser the ratio, the better your CIBIL score. Ideally, the credit utlisation ratio should be below 30%.

Credit Mix

A healthy mix of secured and unsecured credit or loans can demonstrate your ability to effectively manage different types of loan options. This can reflect positively on your CIBIL score. However, you should be careful not to end up with any outstanding dues that can lower your score.

Must Read - Key Factors That Do Not Impact CIBIL Score

Benefits of Checking CIBIL Score

A regular CIBIL score check online will help you catch any drop in your score and take immediate action to rectify it. Other benefits include:

• Increased financial awareness as you understand how your credit behaviour affects your score. This will help you make informed decisions and build good credit habits over time.
• Early identification of discrepancies that could lower your score. You can raise a dispute with CIBIL if you find any error in your report.

All these will help you build and maintain a high CIBIL score that could be a gateway to more favourable loan terms and interest rates.

How to Check your CIBIL Score Online

There are 2 ways you can check your CIBIL score

Through CIBIL Website

CIBIL allows you to check your CIBIL score for free once a year. Here’s how you can do it:

• Visit the official CIBIL website.
• Select the option ‘Get Your Free CIBIL Score’.
• Please register with details like your name, email address, and set a password.
• You’ll likely be sent a One-Time Password (OTP) on your registered mobile number.
• Once your number has been verified, you can access your CIBIL score and view a detailed credit report.

Through other Financial Institutions

Many financial institutions in India let you check your CIBIL score for free through their websites or mobile applications. You’ll likely have to register and follow a similar process to get your CIBIL score and report.

Importance of CIBIL Score in the Home Loan Approval Process

Lenders look at CIBIL scores to determine your ability and likelihood of repaying the home loan. Your score can influence the following aspects of the loan approval process -

• The approval itself: You’ll most likely get faster home loan approval if you have a high CIBIL score. On the other hand, a lower score increases the chances of the loan being rejected.
• Loan amount: A higher score may be able to get you a higher loan amount. On the other hand, a low score indicates high-risk borrowers and lenders may hesitate to offer higher amounts.
• Negotiating power: A high score will allow you to negotiate favorable loan terms like lower processing fees or interest rates.

Please note, at SMFG Grihashakti, we consider factors such as income stability, employment history, debt-to-income ratio, overall financial health, our policy at the time of loan application, in addition to the CIBIL score when evaluating your home loan application.

Must Read - What is CIBIL Score - How Does it Impact Your Home Loan Application

Minimum CIBIL Score Required for Securing a Home Loan

There is no fixed minimum CIBIL for home loan in India. Different lenders may have different cut-offs. In general, most lenders will require a CIBIL score of 700 or above for home loans. Such a score indicates strong creditworthiness that reduces the risk for the lenders.

Impact of CIBIL Score on Interest Rates and Loan Terms

Lenders tend to offer lower interest rates for applicants with high CIBIL scores, as they are considered to be less risky. Low-interest rates will allow you to save significantly over the life of the loan. Conversely, those with lower CIBIL scores will get high interest rates and will end up paying more over the loan term.

High CIBIL score holders also generally get more flexibility in repayment tenures. They may get a longer period, reducing the burden on the monthly EMIs.

Tips to Improve CIBIL Score Before Applying for a Home Loan

Here are some ways to improve CIBIL score, so that you have higher chances of getting a hoam loan with beneficial terms -

• Make sure that all your bills, including credit card dues and existing loan EMIs, are paid on time and in full.
• Try to keep your credit utlisation below 30% to positively influence your CIBIL score.
• Avoid multiple loan applications within a short period of time, as this can signal severe credit needs and raise a red flag.
• Check your CIBIL score online regularly to see if there is any error hurting your score. If found, immediately raise a dispute with CIBIL to get it corrected.

Conclusion

A CIBIL score is a crucial factor for securing loans with attractive terms like low-interest rates, potentially larger loan amounts, and flexible repayment tenures. Regularly checking your CIBIL score, either through the CIBIL website or other financial institutions, will help you stay proactive in maintaining a high score.

At SMFG Grihashakti, the minimum CIBIL score for home loan application is 700. Provided you meet other eligibility criteria, you can get a loan of up to INR 1 crores* – up to 90% of the property value – to get your dream home. Evaluate your monthly EMIs on our home loan EMI calculator and take your first step toward home ownership!