The year 2020 will be recognized as a watershed moment in global history. The pandemic had an influence throughout the world, including India. The pandemic wreaked havoc on the economy, and individuals are still reeling from its effects. Many people are considering taking out a loan to solve their financial problems. However, before applying for any loan, you should check your CIBIL score because it will affect your chances of getting an approval.
A CIBIL score is a three-digit figure that ranges from 300 to 900, with 900 being the highest possible score. It is a gauge of a borrower’s capacity to repay a loan as well as their overall creditworthiness. A borrower’s CIBIL score is determined by various criteria, including their existing debt, the duration of their credit history, repayment habits, and the number of credit enquiries, among others. Your CIBIL score is an incredibly essential factor in deciding how readily you may obtain financing.
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How to Check Your CIBIL Score?
Understanding your CIBIL score will assist you in quickly identifying your financial state. There are several online and offline options available for checking your CIBIL score. The Finserv MARKETS app is one of the most user-friendly platforms. Here not only can you check your CIBIL score but also browse through many loan options offered by various partners such as Bajaj Finance.
Here is the step-by-step procedure to check your CIBIL score with the Finserv MARKETS app.
- First, download the app and log in with the required information.
- After logging in, you will see a “rewards” option at the bottom. You need to select that.
- Next, a popup with the wording “Free personalized credit report with insights. Download now!” will appear. Click on that.
- Then, you must input some basic information such as your email address, pin code, and PAN number.
- Following that, you will be prompted to state whether you are a salaried or a self-employed individual.
- If you are a salaried employee, you should provide your monthly salary, and if you are self-employed, you will need to enter the yearly revenue of your business.
- After filling up all the details, select the “unlock” option after agreeing to the terms and conditions.
- An OTP will be sent to your registered cellphone number and email address. You need to enter the OTP in the app.
- After that, you will be able to download your financial health check report. You’ll discover your CIBIL score in the report once you’ve downloaded it.
Ways to Improve CIBIL Score in the Post-Pandemic Period
The pandemic has taken a heavy toll on people, not just psychologically and physically, but also financially. People have suffered significant losses in their businesses, lost their jobs, and experienced a slew of other financial difficulties. This has also had an impact on their CIBIL score.
Here are the ways to improve your CIBIL score.
Pay all Your Outstanding Balance
If you have many debts from various credit cards and lenders and even if a single payment is missed, it will have a negative impact on your CIBIL score. To deal with this circumstance, you might take out a personal loan to pay off all of these debts.
Don’t Withdraw Cash from the Credit Card
You should not use your credit cards to make cash withdrawals. Despite cashback rewards being available for using credit cards to withdraw cash, there are various hidden fees. You may eventually slip into a debt trap with a hefty interest rate. This would therefore have a negative influence on your CIBIL score.
Payouts should be Prioritized
If you’ve applied for many loans, prioritize those with high-interest rates to maintain your CIBIL score.
If You Have Been Rejected for Credit, Don’t Keep Applying
If you apply for a loan and are denied, the information will appear on your credit report. And after being turned down, if you try to apply at another bank, they may reject your application because of your poor score and previous rejection. In such circumstances, the best course of action is to refrain from applying again and wait for the CIBIL score to improve.
Reduce Your Expenditures
If you seek too many loans or are constantly nearing the limit on your credit card, your score is likely to suffer since such actions demonstrate credit-hungry behaviour. The wisest thing to do is to avoid taking out loans unless required and avoid exceeding your credit card limits.
Check Your CIBIL Score Regularly
A poor CIBIL score might have a significant negative influence on your financial situation. Financial institutions will not issue credit without first examining the CIBIL score, whether it is for a personal loan, a house loan, or any other category. Therefore, you should keep track of your CIBIL score at all times and strive to improve it if necessary.
Concluding Comments
CIBIL scores have become increasingly important throughout the years. Before evaluating a loan application, financial institutions now check a borrower’s credit score thoroughly. A high CIBIL score has various advantages, such as simplifying the process of obtaining any type of loan. Hence, having a solid CIBIL score is essential for good financial health.
