Check CIBIL Score for Free by PAN Card
Banks and financial institutions use credit scores to judge potential borrower's creditworthiness. Credit score also measures the risk of default by judging the past history of credit repayment by a borrower. Only credit bureaus approved by RBI can give a credit score. The four RBI approved credit bureaus are TransUnion, Experian, CRIF Highmark, and Equifax.
|What is a CIBIL Score||Check CIBIL Score for Free||CIBIL Score Calculation|
|Good CIBIL Score Range||Minimum CIBIL Score For Credit Card||Check CIBIL score by PAN Card|
What is a CIBIL score?
CIBIL score is the credit score that is produced by TransUnion. In India, CIBIL has become ubiquitous with credit score similar to how Xerox became synonymous with copy machines. CIBIL scores usually range from 300 to 900, and a higher score is desired. However, it is important to understand that the other 3 credit bureaus give credit scores to banks and customers with the same data.
RBI requires all banks and credit institutions to report all credit related data to all the four credit bureaus periodically. Hence, all the four credit bureaus use the same data to come up with credit scores. There are small differences in how different bureaus calculated credit scores. However, they all offer very similar data.
Check CIBIL Score for Free
CIBIL offers one FREE Credit score(report) per user per year as mandated by RBI. Many people do not know that they can check CIBIL score by PAN card online for FREE.
While CIBIL offers and promotes its paid report, many are not aware that CIBIL offers a free report and score that is not as prominently marketed. By checking the free CIBIL score, one can save INR 550. It is important to check CIBIL score often to ensure one is in good credit standing and that there are no errors being reported in their credit history.
In the below article, we will show how one can learn more about credit score, how one can check their CIBIL score, and additionally get 3 Free Credit Reports from Experian, Equifax, and CRIF Highmark.
Check CIBIL score by PAN Card for FREE
The process to check CIBIL score by PAN card directly with CIBIL TransUnion website is fairly easy and the best way to do so. We do not recommend using third-party sites offering free credit score report. Some websites offer scores by partnering with credit bureaus and do it in the hope of using customer data at a later point. Some other websites create third-party scores which are not an official score.
- Follow link: Free CIBIL Score and Report Online
- There are three main steps in the process:
- Basic Information
- Authentication using 3-5 questions
- Report Access
- Gather required personal information:
- PAN Card: Below, please see the key PAN card info that you will need
- Address, Income, Contact info
- Fill out basic information
- In the following page, more personal information is collected
- You will be asked if you want a paid CIBIL report subscription. You can say NO.
- Authenticate yourself by answering 3-5 questions about your Loans & Credit cards
- Once you authenticate yourself, you will have access to CIBIL Score and Report online
- If your CIBIL score is low, use our simple checklist to improve CIBIL score
*BONUS: Free Credit Report from Experian, Equifax, and HighMark
In case you want to check your credit score more than once a year, it is possible to schedule one free credit report per quarter. For example (January: CIBIL, April: Equifax, July: Experian, October: HighMark). Please follow the below links:
How to Check CIBIL score without PAN card
You can also check your CIBIL score using other identity documents including your Aadhar number and Drivers License details. If in the past, you have gotten a credit card or loan using above details, your records may be stored against your Aadhar card identity. However, increasingly with banks requiring PAN card for all loan and credit applications, one may need a PAN card for a new credit application.
If you do not have a PAN card, follow the below steps to get your free CIBIL score and report:
- Follow link: Free CIBIL Score and Report Online
- Under Tell us about yourself, you can click 'No PAN?'
- Fill in the required details such as Full name, DOB, etc
- Choose the identity proof that you would like to use and fill in the details
- Full in personal contact details such as Address and Email ID
- You will then get your credit score and report access
CIBIL Score Calculation: How is Your Credit Score Calculated
A lot of people check CIBIL score periodically to ensure that they are in good credit standing. In this article, we will evaluate the key factors that determine CIBIL score calculation. By understanding these factors, one can have a better understanding of how to improve cibil score.
Key factors that determine CIBIL Score Calculation
- Credit History (30%)
- Utilization of Credit (25%)
- Duration, Type And Defaults (25%)
- Credit Enquiry (20%)
Past Credit Performance (30%)
The most important factor in determining one's CIBIL score is an individual's past credit performance is accounting for 30% weightage. The record of credit borrowed by an individual and the history of behaviour in repayment of credit is what is considered in this section. If one has made payments on time and in full balance, they would score well in this section.
Credit Utilization (25%)
Utilization of Credit accounts for 25% weightage in CIBIL score calculation. Credit utilization is the amount of credit borrowed as a percentage of total credit limit. For example, if one has a credit limit of Rs. 1,00,000 and they have Rs. 60,000 of limit in usage, their credit utilization will be at 60%. A lower credit utilization score has a lesser perceived risk is from a bank's perspective.
If an individual does increase their credit utilization periodically, then their credit score is negatively impacted. It’s favorable for an individual to have a decreasing credit utilization.
Credit Duration, Types And Defaults (25%)
The type and duration of credit account for 25% weightage in CIBIL score calculation.
Credit Duration is the time period from the approval of one's first credit disbursement to date. A longer credit history is looked at more favorably by CIBIL because it gives them more data for analysis of risk.
The type of loan (secured or unsecured) availed also contributes towards a higher score. Secured loans (car loans and home loans) are secured by way of collateral. Unsecured loans (credit cards and personal loans) are not backed by way of collateral. Unsecured loans negatively impact a score when compared to secured loans even if the payments for both the loans are made on time.
Defaulting on any loan payment (principal or interest) will negatively impact an individual’s credit score. Accounts in collection, bankruptcies, liens and foreclosures take 7-10 years to rectify in one’s CIBIL score.
Credit Enquiry (20%)
The number of times an individual has made a credit enquiry accounts for 20% weightage in CIBIL score calculation. A credit report contains an enquiry section that displays the number of times a credit enquiry was made in each time period. More credit enquiries/applications in short time spans may make the individual be deemed as being credit hungry. Similarly, multiple credit rejections will increase perceived risk. Hence, it is not advisable to apply for several credit lines during a short time span.
Good CIBIL Score Range
A CIBIL score is a credit rating assigned to borrowers based on their past credit record. CIBIL scores can range between 300 and 900. A credit rating above 750 is considered a good CIBIL score. An individual has a better chance of getting a credit card or loan with a higher score (900) as compared to a low score (300). The credit score assigned by CIBIL depends on multiple factors such as loan repayments, frequency of credit inquiries, credit limit usage, the current status of existing loan accounts, late payments, etc.
CIBIL Score Range: Good vs Bad?
- 850 - 900 = Excellent
- 750 - 850 = Good Score
- 700 - 750 = Decent Score
- 650 - 700 = Mediocre Score
- Below 650 = Bad Score
What Is A Good CIBIL Score to get a loan or credit card?
Lenders like to extend credit to applicants with a good CIBIL score. As a rule of thumb, individuals with a CIBIL score over 750 will find it easy to get a loan or credit card approved. A score above 750 will also give one access to excellent credit terms and offers from multiple financial institutions. A good score assures the lender that the applicant makes payments on time, does not have an intent to default, and is compliant ensuring a low-risk customer.
Borrowers with CIBIL scores between 650 and 750 have a low chance at credit approval but may still get access to credit. However, terms of the offer may not be very flexible as compared to those with a higher credit score. The credit card or loan approval process for such applicants usually takes longer subject to multiple verifications.
CIBIL scores below 650 are not considered very creditworthy because of their past credit history. The low score may have been caused due to a default for other reasons. You can improve CIBIL score by being more informed about making better credit choices.
Benefits of a good CIBIL score
The benefits of having a good credit score go beyond getting access to credit. Here is a look at how one can gain from a good credit score
- Easy access to credit: Banks are aggressively trying to push their products to borrowers with good credit scores. According to CIBIL, 79% of loans are approved for individuals with a CIBIL Score greater than 750. This usually means shorter processing times, quick disbursals, and larger lines of credit.
- Low interest rates: Banks set their slabs on interest rates based on borrowers' credit scores. For example, a car loan for someone with a credit score of 650 will cost at least 1% APR more than a borrower with a credit score of 800.
- Best-in-class benefits: Financial institutions reserve their best credit cards for borrowers with the best credit scores. Banks want to sell the least risky customers more of their products, and thus use aggressive benefits and offers to target borrowers with high credit scores.
To be informed about your own credit score, you can get a free credit report on check CIBIL score by PAN Card Number.
Minimum CIBIL Score For Credit Card Qualification
When one applies for a loan or credit card, the bank first checks their CIBIL (credit) score to evaluate the borrower’s creditworthiness based on their past credit history. There is no required minimum CIBIL score for credit card applicants. Each credit card has different requirements of CIBIL scores from their customers. Banks also look at other information like annual income and the current employment status of the applicant before making a decision.
Minimum CIBIL Score For Credit Card
CIBIL scores range from 300 to 900. Before one applies for a credit card, it is recommended for them to check CIBIL score and figure out their best options based on their CIBIL score.
- A score of 750 will get one access to a leading credit card provider with good terms and benefits. If you have a good credit score, it is recommended to shop around and find the best credit that will suit your needs.
- For someone with a credit score between 650-750, there might be a few options for credit cards. However, they may not qualify for a credit card with a high limit. They also will not be eligible for most credit cards with great benefits and rewards programs.
- A credit score under 650 will very rarely qualify for a credit card. If one has a score under 650, our recommendation is to improve CIBIL score before applying for a credit card.
Secured Credit Card: How to use and improve Credit Score
Secured credit cards are credit cards issued by banks by taking a fixed deposit as security from the customer. Very often, secured credit cards are offered to customers without a requirement of CIBIL score. A secured credit card is a great tool for students and those with a low credit score to improve their credit score. When one shows a record of timely payments and responsible use of credit with secured credit cards, their CIBIL score will increase. With an improved CIBIL score, one can apply to credit cards with better rewards, benefits, and terms.
Impact of checking CIBIL score
There is a very common myth that checking one's credit report/score will impact their score negatively. However, that is not true.
It is true that multiple credit checks in a short amount of time impact one's credit score. However, only credit checks made by lenders impact credit score negatively.
There are two types of credit checks that are done: hard checks (credit checks by lenders) and soft check (credit check by borrower).
So, as long as one is not making too many credit checks by applying with multiple lenders in a very short amount of time, one need not be worried about the impact on credit score.
We recommend that customers take their credit score in their hand by checking their credit score frequently to ensure they maintain great credit and financial health.
What affects a credit score?
- Credit repayment history: Credit bureaus like to check that periodical and timely payments are being made by borrowers.
- Default history: A default on credit card bills or loans could affect one's score adversely.
- Credit Utilization: Credit utilization is the ratio of total credit used versus the percentage of the total credit available. When credit utilization is low, borrowers are showing a responsible attitude to maintaining healthy credit.
- Multiple loan/credit applications: When a borrower puts many applications for a credit product with different banks, it is understood that the borrower might not be qualifying for products elsewhere. Or that
- 3rd party guarantor: Many people are unaware that guarantors of loans are also negatively impacted when the primary borrower of the said loan does not have a healthy account of credit repayment.
Why is it important to maintain a good credit score?
A credit score is one of the most important criteria for banks when deciding whether or not to lend a borrower. Banks also offer better rates for borrowers with better credit scores. The importance of credit scores will increase dramatically as credit penetration increases in India.
CIBIL Score Basics
What is Credit score?
A credit score is a credit rating given by an approved credit bureau on the creditworthiness of a customer based on the customer's past credit usage and history.
Is CIBIL score the same as a Credit score?
CIBIL score is the credit score given by one of the 4 RBI approved credit bureaus, CIBIL TransUnion. However, CIBIL score is not the same as the credit score. It is one of the 4 credit scores given by credit bureaus in India.
What is CIBIL score?
A CIBIL score is a 3 digit numeric score between 300 to 900 that reflects the quality of one's creditworthiness. Per RBI Rules, all banks are required to report all credit-related data to all the 4 credit bureaus.Then, CIBIL compiles all this data to understand customer credit patterns and establish a customer credit history and credit score. Banks use the credit score to judge the creditworthiness of all borrowers.
Who can issue credit score?
In India, one of the 4 RBI approved credit bureaus is able to give credit scores and reports. In this regard, all banks and NBFC's are mandated to periodically update all the 4 credit bureaus with all credit data of all banking customers.The 4 credit bureaus in India are CIBIL TransUnion, Equifax, Experian, and CRIF Highmark.
What is CIBIL?
CIBIL TransUnion is one of the four RBI approved credit bureaus in India that gets data from all RBI approved banks regarding customer credit data. CIBIL can be abbreviated as Credit Information Bureau India Limited.
What does CIBIL do?
CIBIL gives creditworthiness data to banks of two types of borrowers: Consumers and Business borrowers. Consumers are provided Consumer CIBIL Report while businesses are provided Commercial CIBIL Report.
What is a CIBIL report?
A CIBIL report is a detailed history of one's credit and loan behavior.
What is a good CIBIL score?
CIBIL scores range between 300 and 900. While 300 is the lowest possible score, 900 is the highest. Generally, a CIBIL score over 750 is considered excellent. A score between 650 and 750 is considered good. A score below 650 will not get one too many credit offers from banking and lending institutions.
Why should I check my CIBIL score?
Customers should check their CIBIL scores so that they are aware of their credit standing. It will help them maintain a good CIBIL score and know when their score changes.
What factors affect CIBIL score?
There are four main factors that affect the calculation of CIBIL scores. Here is the breakdown:
- Past credit history and usage (30%)
- Credit Utilization Pattern (25%)
- Duration of loans, Type of loans and defaults (25%)
- Past credit enquiries (20%)
How can I improve my credit score if I have a low score?
If you have a low credit score, you can definitely improve your score by being more watchful of below things:
- Review your credit report frequently to make sure there are no errors
- Make payments on time every period
- Reduce credit utilization rate (Amount of credit used as a percentage of Total credit available)
1. Can I check CIBIL score by PAN card?
Yes, one can easily check their CIBIL score by PAN card with any of the 4 credit bureaus.
2. Why is my PAN Card required?
Your PAN Card is required because all credit scores are matched to unique PAN card number. PAN Card serves the purpose of documentation for ID proof, address proof, and financial documentation.
3. Do all banks check CIBIL score?
All banks and NBFC's are required by an RBI mandate to use credit scores from one of the 4 RBI approved credit bureaus while making credit decisions.
4. What if I do not have a PAN card?
If one does not have a PAN Card, they can request CIBIL to use their Aadhaar Card instead.
5. What is the range of CIBIL scores?
CIBIL scores range from 300 to 900, 300 being the lowest possible to 900 being the highest.
6. What is a good CIBIL score?
An excellent CIBIL score is one above 750. Such a score will help one to qualify for the best credit terms with shorter approval times.
7. What is a bad CIBIL score?
A poor CIBIL score is one below 650. A person with a poor credit score can improve their credit score by working towards healthy credit habits. Healthy credit habits include repaying overdue debt, paying bills on time, and reducing credit utilization.
8. Why is CIBIL score check FREE? Is there any other costs in T&C?
RBI has mandated that all the four credit bureaus provide one free credit report per year to borrowers. CIBIL has started to provide free credit reports for free after the RBI mandate. No strings attached. For free of cost.
9.What is a paid CIBIL subscription?
CIBIL allows you to get more than one credit report per year in the form of a subscription. Here are the different subscriptions available:
- One report - Costs INR 550
- Twice a year - 2 Reports cost INR Rs 800
- Once a quarter - 4 Reports cost INR 1200