Why Check Credit Report Free is an Important Practice? You might have been denied a loan by the bank but the person sitting next to you got it. Ever wondered why? It’s because of his credit score. Credit score report is your financial report card based on which the bank grants you loan. It’s your credit persona that helps banks decide whether you are worthy of this debt or not. These scores are assigned by credit information companies to individuals and corporations to show their credit worthiness. Some of the popular and reliable credit information companies are TransUnion CIBIL (Credit Information Bureau of India), Experian, Equifax. In India, CIBIL takes precedence over all other credit information agencies. The sole reason being that 85-90% of the banks have partnered with CIBIL as their members. Thus, a CIBIL score is widely accepted in India. That’s why there is more emphasis on maintaining a good CIBIL score. Every credit bureau has their own rating model. A CIBIL score ranges from 300-900, with 300 being the worst and 900 being the best. A score of 750 and above is considered to be a good one when you apply for credit. Importance ofChecking Credit Score: Availing Credit - In case of secured loans (home loans) and secured credit cards, the need for credit score can be discounted because banks ask you to submit collateral against it. In the event of default, the bank can simply seize your collateral in order to recover the loan. This is not the case with unsecured loans (personal loans) and secured credit cards. Here the bank grants you the loan on trust basis. The bank trusts you on the basis of your CIBIL score (credit score). In order to get loan approvals without any hassle, maintain a credit score of 750 and above. Credit Check: It helps you manage your finances by letting you check your credit track record in front of your eyes. You can spot where you are going wrong with your credit transactions. Once you’ve spotted these, you can improve these errors by making payments for the same. Dispute Settlement: In case you have issues with some credit transactions or the scores assigned, you can always call for dispute settlement. Every credit information company has a dispute settlement wing who looks thoroughly into your complaint and makes changes accordingly. How can I Check Credit Report Free ?
Checking your credit score is not an expensive affair. Infact, some credit score companies (like CIBIL & Experian) has credit score check free feature. All you have to do is go to their official website and fill in some important details. Let’s see how you can check credit report free (as it holds more prominence in India) for free. Follow the step-by-step guide to do a credit score check free: ● ● ● ● ●
Visit CIBIL’s website Create an account on CIBIL using your name, email id and mobile number. Once done, open your account using Username & Password. Then enter date of birth, address, id proof, PAN card details. An OTP will be sent for verification purposes. Enter that and you’ll receive your credit score on your email instantly.
Also, CIBIL has a strict verification policy. In order to comply with this policy, you’ll have to attach scanned documents of ID proof, Address Proof and Bank details. Once CIBIl is convinced, then only you will be provided with the credit score report. You can also have a credit score check free on the websites of some Financial technology companies. They provided absolutely free credit score check by just entering a few details.