The credit score is an imperative aspect of your financial well-being. Denoted by a 3-digit numerical, this score is a driving influence when seeking a financial product. Lenders highly rely on the credit score of an applicant when validating creditworthiness. A good credit score will bring you the best offering on loans, especially on a personal loan. A personal loan is offered collateral-free, and lenders review your CIBIL or credit score when approving one.
Applying for a personal loan with an inadequate score will ultimately lead to your loan getting rejected. Not only does this cause personal dejection, but it also leads to a further drop in your credit score. This is why you must check your credit or CIBIL score before you decide to apply for a personal loan. This will help you avert the possibility of rejection and prevent your score from getting affected.
Here is a step by step understanding for checking your CIBIL score on Finserv MARKETS for free.
Step 1: Log on to the Finserv MARKETS website.
Step 2: Click on the ‘Loan’ section, followed by ‘Credit Score.’ Now select the ‘Check CIBIL Score’ option.
Step 3: Get started by entering your details such as Name, Mobile Number, Date of Birth, Personal Email ID, PAN, and Pin code. You will also have to select your profession, i.e., Salaried or Self-employed.
Step 4: Enter the OTP that you receive and click on submit.
Step 5: Once submitted, you will receive the CIBIL score and a detailed credit report on the provided Email ID.
What is Part of your Free Credit Report?
The free credit report from Finserv MARKETS provides you with more than just your CIBIL score. Look out for the,
Breakdown of your Score – Find details of your credit history and a complete summary of your accounts.
Effect of your Score – The way your current score will affect your borrowing ability. Having a score in the higher range will increase your prospects of availing of a personal loan.
Best Course of Action – Evaluate a breakdown of your score to map out the best ways to improve or maintain your CIBIL score.
What is a good CIBIL score?
The CIBIL score ranges on a scale of 300 to 900. The higher the score on this range, the better your creditworthiness. Typically, a score above 750 is an excellent score as it reflects your ability to manage your financial obligations effectively. As your score tips further towards 900, it increases your chances of qualifying for the best loan offerings from your lender. Read on to understand the different CIBIL score ranges and their meaning:
NA/NH – NA/NH means that you do not have a credit history. There is no CIBIL score attached to your profile.
350-549 – The credit range is considered low, and a score in this range is likely to warrant rejections on loan applications.
550-649 – This range is considered moderate. However, very few lenders may offer a personal loan with this credit score. If they do, the rate of interest is likely to be high.
650-749 – A score in this range is considered good. Loan applications are usually granted, but the interest rate may not be the best.
750-900 – A score in this range is excellent and will assure you instant loan approvals coupled with the best deals.
Aspects that Impact the Credit Score
Several factors influence your credit score. These include:
Repayment Record: It is important to handle your repayments responsibly. Late payments or defaulting on your dues will significantly lead your CIBIL score to drop.
Debt to Credit Ratio – Overspending from your available credit without having enough income will reduce your credit score.
Credit Mix: A good mix of credit products such as different types of credit cards and loans will positively impact your credit score.
Numerous debts: A large number of debts negatively impact your CIBIL score and cause it to drop.
As you now understand, a high credit score will increase your chances of availing of a value-added personal loan deal. Ensure that you keep a regular check on your CIBIL score not just before applying for a loan but otherwise, too. This will help you rectify and improve your score over time. Use the Finserv MARKETS free credit health report to always stay at the top of your financial game.