When you apply for a loan or a credit card, one of the first things a lender looks at to assess your reliability is your credit score. This will determine your ability to repay the payment on time. A strong credit score enhances the likelihood of your loan being approved.
You can check your credit score for free and receive monthly updates from Bajaj Finserv. However, to acquire your credit score for free online, you must provide your PAN as one of the documents. You can check CIBIL score by pan card.
Understand how to obtain a CIBIL score- The sum of a customer’s credit report, rating, and history gives a CIBIL score that varies from 300 to 900. A credit score of 750 or greater is regarded as healthy, while anything lower is deemed hazardous. A high credit score facilitates the loan application process. Customers profit from it, particularly in terms of interest rates. Borrowers with good credit may be able to obtain loans at lower interest rates than other borrowers. Lenders consider a variety of indicators before releasing funds, but one of the most important is credit score. There are various ways of checking your CIBIL score, one of them is check CIBIL score by PAN card.
How to Check CIBIL Score By PAN Card
To Verify Your CIBIL Score with Your PAN Card, Do the Following:
- Access the CIBIL portal.
- To get your CIBIL score, go to the top right corner of the screen and click the button.
- Choose a subscription plan.
- Include information like your birthdate, phone number, and email address.
- Create a username and password for yourself.
- Enter your PAN and choose “Income Tax ID (PAN)” as the ID type.
- Continue to authenticate your identification and respond correctly to all inquiries.
- Fill out the “Make Payment” form.
- Skip the subscriptions and go right to your account if this is a one-time need.
- Enter your email address or OTP to access your account.
- Enter your information into the form that appears.
- Once you submit the form, your CIBIL score will be shown on the dashboard.
- Alternatively, you can go to the Bajaj Finserv website and follow the procedures there.
The significance of a good credit score: Those with bad credit, on the other hand, are higher-risk consumers, with fewer lenders competing for them and more firms able to charge illegally high annual percentage rates (APRs). Furthermore, because your credit score influences your ability to rent housing, rent a car, and even receive life insurance, a low credit score may make it difficult to find rental property, hire a car, or even obtain life insurance.
There are numerous credit score misconceptions that persist as a result of ignorance. People find it difficult to verify the reality and importance of these myths and rumours.
You will save hundreds of thousands of dollars over the course of your life if you have a strong or exceptional credit score. Mortgages, vehicle loans, and other forms of finance are less expensive for people with strong credit. Clients with higher credit scores are considered less risky, and more banks are fighting for their business by offering lower interest rates, fees, and bonuses.
Other Elements Impacting Your CIBIL Score:
The following are the important criteria that determine your CIBIL Score:
- Several Difficult Inquiries: If you have recently applied for a number of loans or credit cards and those applications have been approved, lenders will closely examine your application because this behaviour signals an increase in your debt burden, which will have a negative impact on your credit score.
- Bad Payment Records: Your CIBIL credit score would suffer if you make numerous late payments or fail to pay your EMIs. Your track record of timely EMI and credit card due payments is one of the most important factors impacting your CIBIL score.
Read Here More: CIBIL Score: Understand the Definition, Usage, And Benefits
- The Proper Credit Combination: A balanced mix of secured (such as a car loan or home loan) and unsecured (such as a personal loan or credit card) loans is likely to increase your credit score. It is advised that you keep track of your unsecured debts. However, it has a little impact on your credit score. You should not take out a secured loan only because you have a number of unsecured loans, but none secured loans.
- Credit Is Widely Used: Having a high credit utilisation ratio or frequently maxing out your card suggests that you are overly reliant on credit and have a large repayment burden, which may harm your credit score. It is recommended that you should not use more than 30% of your overall credit limit. This suggests that you are not credit hungry, and the chances of you defaulting as a borrower are low.
FAQ:
- Can I generate my credit score with my Aadhaar card?
Despite the requirement to link your PAN card to Aadhaar, you can no longer obtain your credit score using merely your Aadhaar number. Your PAN card is required to generate your credit score.
- Is it possible to check my credit score without a PAN card?
Your PAN card is used to keep track of all of your key financial transactions. You probably haven’t taken out any credit if you don’t have a PAN card. In this case, no credit bureau will be able to calculate your credit score.