How to Get Credit Report Absolutely Free of Cost?

How to Get Credit Report Absolutely Free of Cost?

Credit Report and CIBIL report, are terms which can be used interchangeably as most of the lenders in India accept CIBIL score. You’ll be delighted to know that TransUnion Credit Information Bureau of India Limited gives everyone the opportunity to get their CIBIL report​ for free. Just follow the below mentioned steps and you’ll have access to your credit report in no-time. ● Go to CIBIL’s website and click on the link to check free credit score report. ● Create your Account. ● Fill out the necessary details such as Date of Birth, Aadhar, Email-id, PAN number, etc. ● You’ll also be required to submit some documents for verification purposes.

Once CIBIL verifies your request, your Credit Information Report will be sent to your email.

However, if you want to check the credit score more than once, you can’t do it for free.

One more way is there, where you will have to pay for the subscription model by CIBIL which gives you ​CIBIL Score​ Report on a half-yearly and quarterly basis.

How Important is CIBIL Score in the case of Personal Loans?

Let’s get to the basics first. CIBIL score is a three digit number assigned to individuals by the credit information company, TransUnion CIBIL, in order to help banks and NBFCs gauge the credit track record of the individual. Lenders make it a point to check CIBIL score before approving any loan requests. ​Credit report​ is checked to determine whether the individual has the capability to repay the loan or not.

You can’t board a flight without a security check, right? Similarly, it’s hard to get a personal loan without getting frisked by CIBIL score .The reason being personal loans are unsecured loans, implying no securities need to be pledged in order to take the loan. So the banks have no other way to gain confidence in you other than checking your CIBIL score. But in practicality, banks do sometimes discount the CIBIL score check, only for their old and prime customers. It can also take a back seat when the

loan amount is a small one and you have all the mandatory documents with you.

Why is it Important to Check your Credit Report from Time to Time?

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 approval 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 rectify these errors by making payments for the same.

Settlement of Disputes:​ 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. So a regular CIBIL score check helps you being aware of your finances.