CIBIL score is one of the most important eligibility criteria to avail of consumer loans in India. According to a recent survey conducted in 2020 which revealed that 68% of the respondents did not know their credit scores.
- Only around 52% of borrowers understood the concept of CIBIL and its importance in terms of borrowing credit.
CIBIL score is the basic indication of an individual’s creditworthiness. Usually, one can check this score by logging into the official TransUnion CIBIL website. However, this portal allows only one free credit score check per customer in one year. Nevertheless, one can also check CIBIL without login, which is a faster alternative, requiring no payment.
Steps to check CIBIL score without logging in
Although the official CIBIL portal allows borrowers to check their scores once every year at no additional charges, for multiple checks within the same year, one should look for alternatives. Listed below are some of the steps to check this score without logging in –
- Step 1: The first step involves navigating to the official website of one’s chosen lender.
- Step 2: Locate the option to check the CIBIL score from within this portal.
- Step 3: An online form should open next, where borrowers need to enter their personal details, including name, age, phone number, email ID, PAN number, etc. To check CIBIL without login, it is imperative to ensure that the details on this form match the individual’s government ID proof details.
- Step 4: Next, one must wait for an OTP that will be sent to his/her email or mobile number provided, or both. Enter this OTP in the corresponding field and click on “Next”.
- Step 5: The following page would likely display the individual’s CIBIL score.
The ideal CIBIL score for personal loan application should range between 750 and 900. Keeping the score in this range should streamline the process of borrowing, ensuring minimal chances of credit rejection.
Why should you check the CIBIL score frequently?
Financial institutions submit inquiries to TransUnion CIBIL regarding a potential borrower’s credit profile before approving or rejecting loan applications. This practice is even more common in the case of unsecured credits.
- A report claims that the number of inquiries in the personal loan segment dropped by 43% y-o-y in November 2020.
- Even so, the approval rate for personal loans in August 2020 was 31.6%, which was a marginal improvement over the 29% approval in the same period the previous year.
Thus, apart from learning how to check CIBIL without login, potential borrowers must also understand how to improve their scores. In emergencies, one can also consider getting a personal loan with a bad CIBIL score. However, such loans tend to carry increased interest charges and other limitations.
Key tips to improve credit score
Individuals looking to avail of a low interest personal loan would first need to build their credit profile. Following are some simple tricks to ensure an impressive CIBIL score –
Maintaining a balanced credit mix of secured and unsecured loans
Ideally, an individual’s credit profile should contain an equal number of secured and unsecured debts. This indicates that one does not simply rely on unsecured loans alone. Thus, if one has consistently opted for unsecured options only, his/her CIBIL rating can benefit significantly by opting for a secured loan next.
Checking credit report for errors
One of the biggest reasons to check CIBIL without login from time to time is to resolve any error or mistake in an individual’s credit report. Although rare, such errors can happen and severely affect one’s chances of getting unsecured loans. One must keep in mind that the CIBIL score is one of the major factors that affect one’s personal loan approval.
If an individual happens to notice any error, he/she can file an official report with the credit information company for a swift resolution.
Keeping credit utilization ratio in check
The credit utilization ratio is the amount of credit utilized compared to the total amount of credits available. For example, a credit card user utilizing Rs.35,000 through the card, which carries a limit of Rs.1 lakh, would have a credit utilization of 35%.
Keeping this ratio between 30% and 40% is ideal. A ratio higher than 40% indicates credit hungry behavior, which can work against the borrower.
Besides credit score improvement, potential borrowers also need to meet all other personal loan eligibility parameters. Aside from easier loan approvals, meeting these requirements can enable one to avail of additional perks.
Lenders like Bajaj Finserv extend pre-approved offers to eligible borrowers, ensuring a smooth and quick loan approval process. These offers are available on a range of financial products, including personal loan, business loan, etc. Check your pre-approved offer by providing just a few details.
Regardless of whether one checks CIBIL without login or with login, monitoring the same is important. Doing so can help individuals improve eligibility before filling out a credit application, thereby reducing the chances of loan rejection.
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