Every time a borrower applies for a loan, the lender they have made an application to approaches a credit information agency to enquire about the applicant’s credit score. TransUnion CIBIL is the most popular credit information agency and it calls the credit score it assigns to borrowers as CIBIL score. The CIBIL score is a three-digit number between 300 and 900 that indicates a borrower’s creditsworthiness and repayment capacity. The CIBIL score is calculated based on factors, such as the applicant’s repayment history, their credit utilization ratio, the age of their credit history, the credit mix they have, etc.Â
The minimum CIBIL score that borrowers require for a loan is 750. The higher one’s CIBIL score or the closer it is to 900, the better are one’s chances of getting approved for a loan and availing it of on beneficial loan terms and conditions, including low interest rates and a longer loan tenor to ease the burden of loan repayment. A low CIBIL score, on the other hand, reduces one’s eligibility for a loan. Borrowers whose CIBIL score lies in the range 700 to 749, get approved for a loan but are charged a high rate of interest by the lenders and a CIBIL score below 699 makes getting approved for a loan difficult.
Loan applicants are therefore advised to check their CIBIL score before applying for a loan. So, how to calculate CIBIL score? Well, it is difficult to calculate one’s CIBIL score on its own and there is no CIBIL score calculator that a borrower can use to calculate their CIBIL score. If you want to calculate your CIBIL score or to make it clearer, know your CIBIL score, there are two methods you can follow. Read on to know about both.Â
How to Calculate CIBIL ScoreÂ
How to Calculate CIBIL Score Using Your PAN Card DetailsÂ
– There are many apps and websites that allow borrowers to calculate their CIBIL score for free. Look for one such app or website.Â
– Once you have this website, go there and select the Calculate Your CIBIL Score option.Â
– The website will prompt you to share some details about yourself, such as your name, address, phone number, etc.Â
– After you have entered these details, the website will prompt you to share your PAN details. These PAN details are needed as they help you match you correctly with your credit profile.Â
Using this method, you can perform CIBIL score calculation and know your CIBIL score for free. However, when you opt for this method, know that you won’t get access to your credit report, which is an electronic representation of one’s credit score. The credit report is important as it helps borrowers understand what factors are affecting their CIBIL score and what they can do to improve it. A borrower must mandatorily get access to their CIBIL report if their CIBIL score is below 750 as only after looking at their CIBIL report will they be able to figure out what they need to do to improve their CIBIL score.
How to Calculate CIBIL Score On TransUnion CIBIL’s WebsiteÂ
– Go to the official website of TransUnion CIBIL and select the ‘Get Your CIBIL Report & Score’ option. You will be able to find this option on the right side of your screen.Â
– During the next step, you will be asked to create a profile. For this, you will be asked to enter details, such as your email address, name, phone number and identity of proof details.Â
– After you have entered all the required information, click on ‘Accept and Continue’.Â
– Once you do this, an OTP will be sent to the mobile number you have entered in your profile. Please enter this OTP and select the ‘Continue’ option.Â
– After you have created your account, go to the profile dashboard on myscore.cibil.com.
– Next, click on member login. Once you login, you will be able to view your CIBIL score.Â
Please know that if you want to check your CIBIL score and also get access to your CIBIL report on TransUnion CIBIL’s website, you will be asked to pay a fee based on the subscription plan you choose. This fee is quite minimal and one can afford it easily.
Final WordsÂ
Borrowers must know that the CIBIL score is one of the first things that borrowers check once they get a loan application. If a borrower has a good CIBIL score, their chances of home loan approval increase exponentially. Ideally, to be able to get approved for a loan quickly and to be able to avail of a loan on beneficial loan terms and conditions, borrowers must have a CIBIL score of 750 or above. If a borrower’s CIBIL score is below 750, they must improve it first and then apply for a loan. Improving one’s CIBIL score is easy. All one needs to do is build a clean repayment history, refrain from making new loan applications and applying for new credit cards, lower their credit utilization ratio and constantly check their CIBIL report for errors. If one does these things, their CIBIL score will improve automatically over time.
