Why You Should Pull Your Own CIBIL Score in India

Introduction

If you are someone who is planning to take out a loan or credit card in India anytime soon, you must know that your credit score plays a crucial role in determining your eligibility for getting approved. In this post, I am going to convince you why it’s important to pull your own CIBIL score before applying for a loan or credit card.

What is a CIBIL Score?

CIBIL score is a three-digit number ranging from 300 to 900, assigned to individuals based on their credit history. The higher your CIBIL score, the better your chances of getting approved for a loan or credit card. This score is calculated based on various factors such as your credit history, payment patterns, credit utilization, and credit mix.

Reasons to Pull Your Own CIBIL Score

Reason #1: You Can Check for Errors

There are instances where your credit report may contain errors that can negatively impact your CIBIL score. It’s essential to check your CIBIL score regularly to ensure that there are no errors in your credit report. If you find any errors, you can dispute them with CIBIL, and they will rectify the mistakes. By doing so, you can prevent these errors from causing any issues in the future when you apply for credit.

Reason #2: You Can Improve Your Credit Score

By pulling your own CIBIL score, you can identify areas where you need to improve your credit score. For example, if your credit utilization is high, you can work on reducing it by paying off your outstanding balances. Or if you have missed any payments, you can ensure that you make timely payments going forward. By doing so, you can improve your credit score and increase your chances of getting approved for credit in the future.

Reason #3: You Can Negotiate Better Terms

If you have a good credit score, you have the bargaining power to negotiate better terms for your loan or credit card. With a high CIBIL score, you can negotiate for lower interest rates, higher credit limits, and better repayment terms. On the other hand, if your credit score is low, you may have to settle for less favorable terms or even get rejected for credit altogether. By pulling your own CIBIL score, you can take steps to improve your credit score and negotiate better terms for your credit.

Reason #4: You Can Avoid Surprises

Imagine applying for a loan or credit card, only to find out that you have been rejected because of a low CIBIL score. This can be a frustrating experience, especially if you were not aware of your credit score beforehand. By pulling your own CIBIL score, you can avoid surprises like these and be better prepared when applying for credit. If your credit score is low, you can take steps to improve it before applying for credit.

Potential Objections and Responses

Objection #1: I Don’t Want to Pay for My CIBIL Score

While it’s true that you need to pay a fee to pull your CIBIL score, it’s a small price to pay for the benefits it offers. You can get your CIBIL score for free once a year, and at a nominal price later, which is usually a small price to pay considering the impact your credit score can have on your financial life. Additionally, many banks and credit card companies offer free CIBIL score checks to their customers, so you may not have to pay anything at all.

Objection #2: I Don’t Need a Loan or Credit Card Right Now

Even if you don’t need a loan or credit card right now, it’s still important to be aware of your credit score. Your credit score can impact many aspects of your financial life, not just loan and credit card approvals. Landlords, employers, and insurance companies may also use your credit score to assess your financial responsibility. By regularly checking your credit score, you can be aware of any changes and take steps to improve your credit score if necessary.

Objection #3: I Don’t Know How to Interpret My CIBIL Score

If you are not familiar with credit scores, it can be confusing to understand what your CIBIL score means. However, CIBIL provides a detailed credit report along with your score, which explains the factors that are impacting your score. Additionally, there are many resources available online that can help you understand what your credit score means and how to improve it.

In conclusion, pulling your own CIBIL score in India is a must-do if you are planning to apply for credit. By checking your credit score, you can identify and correct any errors, improve your credit score, negotiate better terms, and avoid surprises when applying for credit. So, take the first step towards financial responsibility and pull your own CIBIL score today!

How to Avail Your Free Credit Report in India

In India, the Reserve Bank of India (RBI) has mandated that credit bureaus must provide one free credit report to individuals each year. This means that you can avail your CIBIL credit report for free once a year. Availing your free credit report is easy and can be done in the following steps:

Step 1: Visit the CIBIL Website

To avail your free credit report, visit the CIBIL website at www.cibil.com. Click on the “Get Your Credit Score” button on the home page.

Step 2: Fill in Your Details

You will be directed to a page where you will need to fill in your personal details such as your name, date of birth, address, and identification proof details such as PAN card, passport number, or driving license number.

Step 3: Authenticate Your Identity

After filling in your details, you will be asked a few questions to authenticate your identity. These questions may be related to your past loans, credit card usage, or personal details. Answer the questions truthfully to verify your identity.

Step 4: View Your Credit Report

Once your identity is authenticated, you will be able to view your credit report for free. Check your report for any errors or discrepancies and take necessary steps to correct them.

Take Action Today – Get Your Free CIBIL Score

In today’s world, where credit is an essential aspect of financial life, knowing and monitoring your credit score is crucial. By pulling your own CIBIL score in India, you can stay on top of your credit and take steps to improve it if necessary. Additionally, availing your free credit report once a year can help you keep a tab on your credit history and ensure that everything is in order. So, what are you waiting for? Pull your own CIBIL score today and take control of your financial life!