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What is CIBIL Score? How to Check CIBIL Score for free?

CIBIL score is a term used frequently in the financial circles these days. Primarily, it is a metric used by banks, and other financial institutions, when you approach them for a loan or credit card. Any Indian can check his/her individual CIBIL score anytime. But before we discuss how to check your CIBIL score for free, it is important to understand exactly, “What is CIBIL score”.

What is CIBIL Score? How to Check CIBIL Score for free?

If you already know everything about CIBIL score, you can skip the next section. For everyone else, do read through to know what it actually means.

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What is CIBIL score?

Many of you might have come across this term – CIBIL Score, at some point in your life. This is most likely to have happened when you may have applied for a loan or a credit card. And at that point in time, a question might have popped up in your mind – What is this CIBIL score?

It’s a very good question and definitely something worth knowing.

CIBIL basically is an abbreviation of an agency or organization called Credit Information Bureau India Limited. It is India's first Credit Information Company (CIC) founded in August 2000. The main objective/aim of this organization is to collect and maintain the records of an individual's payments pertaining to loans and credit cards.
What this means is that it tracks every credit transaction (udhaar in Hindi) of every citizen of India. This is done to keep a record of every individual's borrowings and whether he repays them on time or not.
Using this information, the CIBIL score is created which gives an idea to all the financial institutions/banks whether an individual is trustworthy enough to lend money or not.
CIBIL score is measured on a scale of 300 to 900. A score of 750+ is considered a good/healthy score.

These days, almost all banks use the CIBIL score to decide whether or not an individual is eligible for a loan or credit card or not. And even if he is, how much loan amount or credit card limit can he receive currently.

How to check CIBIL score for free

First up, I would like to state that if you have never ever used, nor possessed a credit card, and have never taken a loan, then you need not worry. Your CIBIL score is already great. This is because you have never taken any form of loan or credit which may impact your score. You need not check your score but if you still wish to, you can using the below methods.
In order to check your current CIBIL score, there are a few ways. The official CIBIL website allows you to check your CIBIL score but it charges a monthly fee for it. There are multiple plans to choose from and depending on the plan duration, you get regular updates about your CIBIL score on your email address. This is great for Business companies and Businessmen.
What is CIBIL Score? How to Check CIBIL Score for free?

However, it’s not the only way. One can easily find out his/her credit score for free.

There are mainly 2 popular websites (that I know of personally) that allow an individual to check their credit score (CIBIL score for free). These are completely legitimate websites and provide a legit way to check your credit score. So you can completely trust them.

On both these websites, you can easily check your CIBIL score for free. All you need to do is open the websites using the links given above and then follow the easy steps as mentioned on these websites.
They usually ask you a little information like mobile number, PAN number etc. Don’t worry, even the official CIBIL website asks for this information. It is used to identify you in the government’s records. Once you enter the basic information they seek, they process your request for free and either show you your score there and then on the screen or mail it to your email address, or even both.
These sites are able to provide you this information for free as they already have subscribed to the CIBIL monthly plans. So they can process multiple user requests. In return, they mail you information regarding new Fixed Deposits, Mutual Funds or bank policies etc. This drives interested users to their websites, as well as, to their sponsor websites which generate them revenue. Hence a win-win for all.

How to increase your CIBIL Score?

If you have checked your CIBIL score using the methods above, and have found it to be below the 750 mark, then don’t worry.
As a bonus feature in this article, I will also share with you some steps on how you can improve your CIBIL score.

Your low CIBIL score denotes that you have not been punctual in timely payments of either your loan EMI, or your credit card statement, or both.
What is CIBIL Score? How to Check CIBIL Score for free?
A credit card statement always shows 2 payable amounts. One is always the total payable amount and the other is the minimum payable amount. Credit card users mostly get into the habit of not paying the complete amount at once. They only pay a part of the total due amount that is greater than the minimum payable amount.
Even though this keeps your card running without issues, it constantly affects your CIBIL score in a negative way. Timely complete payments of the credit card statement for many months at a stretch can ensure a positive impact and an increase in one’s CIBIL score.
Similarly, even defaulting or missing the loan EMI for a month or 2 can negatively impact the CIBIL score. Try and pay the EMIs on time to maintain a healthy CIBIL score.
Many times, a user doesn’t want to default on the credit card or EMI payment, but because of excessive credit card expenditure or loan amount, he/she is unable to repay.

Hence, it is always suggested to keep the credit amounts as low as possible. Take a loan which you can repay easily even if you lose your job. And spend your credit card only as much as you would with your debit card.
I hope this article was useful and informative to you in understanding all there is to know about the CIBIL score. If you found it useful, don't forget it to share and follow us on Social media. Links are given above.
If you have any queries, questions or suggestions regarding this article, feel free to post them in the comments below.
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