Is Your CIBIL Score Good Enough? Here's How to Check and Find Out

In today's world, where credit plays a vital role in our financial lives, understanding what is a good CIBIL score and having a good credit score is essential.

Your creditworthiness, as reflected by your CIBIL score, can significantly impact your ability to obtain loans, credit cards, and other financial opportunities. 

The steps of a free CIBIL score check are simple and very useful in evaluating your credit health.

Whether you're planning to apply for credit or want to monitor your financial standing, it is important to gain knowledge of what is a good CIBIL score and the steps of a free CIBIL score check online so that you can assess your CIBIL score and take steps towards improving it if needed.

What is a good CIBIL score?

The CIBIL score, also known as the credit score, is a three-digit number ranging from 300 to 900 representing your creditworthiness based on your credit history. 

Lenders use this score to assess the risk involved in lending you money. A score of 750 and above is considered excellent, and you'll likely have no trouble getting approved for loans or credit cards with this credit score. 

Knowing what is a good CIBIL score is crucial for everyone, from first-time borrowers to seasoned credit users. A good CIBIL score can also impact your interest rate on loans and credit cards. 

Regularly performing a free CIBIL score check on a reliable online service such as Bajaj Finserv Credit Pass can help you stay on top of your credit health.

Important steps for free CIBIL score check online

If you're wondering what is a good CIBIL score and want to know the steps for a free CIBIL score check online, the Bajaj Finserv is a great place to start. 

Checking your CIBIL score with Bajaj Finserv is a straightforward process. You can perform a free CIBIL score check by following these steps:

• Visit the Bajaj Finserv official website bajajfinserv.in/check-free-cibil-score.
• Search for the "Check Your CIBIL Score" section.
• Click on the "Check Score" link.
• Enter your mobile number to receive a One Time Password (OTP).
• Enter the OTP and click the "Submit" button.
• Fill out the form with your name, date of birth, PAN card number, and other required details.
• Accept the terms and conditions.
• Click "Submit" again to complete the process.
• After submitting, your CIBIL score and report will be displayed on the screen.

Several ways to improve your CIBIL score

Improving your CIBIL score is essential for maintaining a healthy credit profile. A good credit score can increase your chances of getting approved for loans and credit cards at favorable terms.

• Pay bills on time

Timely payment of your credit card bills, loan EMIs, and other dues is crucial. Late bill or EMI payments can have a negative impact on your credit score. Set up payment reminders or automate payments to ensure you never miss a due date.

• Keep credit utilization low

Credit utilization refers to the percentage of your available credit limit that you utilize. Aim to keep your credit utilization below 30%. Higher credit utilization indicates credit dependency and can negatively affect your score. Pay off outstanding balances and avoid maxing out your credit cards.

• Maintain a healthy credit mix

A diverse credit mix, including a combination of credit cards and loans, can positively impact your credit score. It demonstrates your ability to manage different types of credit responsibly. However, avoid taking on unnecessary debt just to improve your credit mix.

• Regularly check your credit report

Monitor your credit report for errors or discrepancies that could impact your score. If you find any incorrect information, such as inaccurate loan or credit card details, contact the credit bureau to rectify the errors.

• Limit new credit applications

Each time you apply for new credit, it generates a "hard inquiry" on your credit report, temporarily lowering your score. Avoid making multiple credit applications within a short period unless necessary. Instead, focus on building a positive credit history with your existing accounts.

• Maintain a long credit history

A longer credit history indicates your creditworthiness over time. If you have older credit accounts, keep them active and in good standing. Avoid closing old accounts, especially if they have a positive payment history, as it can shorten your credit history and impact your score.

• Use credit responsibly

Practice responsible borrowing and spending habits. Avoid excessive borrowing or using credit for unnecessary purchases. Make consistent payments and demonstrate financial discipline to establish a positive credit history.

Final Thoughts

Knowing what is a good CIBIL score and how to perform a free CIBIL score check is essential for managing your financial health. Bajaj Finserv Credit Pass free CIBIL score check online service allows you to keep track of your credit standing without any hassle. 

Regularly doing a free CIBIL score check and taking steps to improve or maintain your score can open up financial opportunities. 

So, don't wait; perform a free CIBIL score check with Bajaj Finserv and stay on top of your financial game.

5 Ways to Get Personal Loan Even with Bad CIBIL Score

Personal loans are easy to avail when you meet all related eligibility criteria. One of the most important factors when considering creditworthiness is your CIBIL score, which is your credit rating. Generally, poor credit scores disqualify you from availing loans. However, there are certain tricks that makes personal loans for bad credit possible.

If you need a personal loan with bad CIBIL score, you can try these workarounds to get the financial help.

Take the loan jointly

When it comes to personal loans for bad credit, the best alternative is to opt for the loan together with another friend or family member. Ensure that the other member’s CIBIL score is at least 750. In this manner, you can bypass your poor credit rating and receive the loan amount from the lender.

Check for errors on CIBIL rating

In some cases, the CIBIL score may fail to show your actual creditworthiness. This generally happens due to a mistake during the CIBIL score calculation. Ensure such faulty scores do not hamper your chances of availing a personal loan. Double-check all the details you provide on CIBIL, such as the PAN number and credit history information.

Enquire about associations between lender and employer

Salaried employees working for reputed companies or organization can check whether their employer has a tie-up with the NBFC in question. You can exploit this connection to avail a low CIBIL personal loan. Financing companies often prefer lending money to employees of such esteemed companies.

Look for other lenders

The eligible credit score for availing a personal loan varies between different lenders. Some NBFCs may offer such loans on lower credit scores as well. Therefore, you should look at all available options. 



You may find a lender whose eligibility criteria you can match. Personal loan eligibility calculators will help you determine whether you can avail a loan or not.

Reinforce your application with a collateral

In general, personal loans are unsecured financial products. You cannot pledge an asset against the money you borrow. However, some financing companies may allow you to do so if you are looking for personal loans for bad credit. Check whether your lender has such provisions in place.

However, improving your credit score is the best way to ensure a fast and hassle-free personal loan approval.

Methods to improve CIBIL rating

• While using credit cards, keep in mind that you should spend only as much as you can repay within the billing date for the card. Unpaid credit card bills hamper your credit rating.
• If you are already repaying a loan, ensure you make EMI payments on time every month. Late payments or defaults will adversely affect your CIBIL score.
• In some cases, the credit score on your CIBIL account does not reflect your credit rating but that of someone else’s. This may happen due to an error on your part while entering your details or due to other reasons. Rectify these mistakes as soon as you notice them to improve your credit rating.
• Rather than looking for a personal loan for bad credit, you can try to improve your CIBIL score by increasing the credit limit on your credit card. High credit limit results in a better first impression about you on lenders.

NBFCs provides pre-approved offers, which makes the loan availing process simpler and faster. These offers are available across both secured loans, such as home loans, and unsecured loans, namely, business loans and personal loans.

So, do not stop looking for a personal loan for bad credit. You will either find a way to avail such a loan with poor CIBIL score or improve your credit rating in the process.

How A Bad CIBIL Score Can Ruin Your Chance Of Getting Doctor Loan

You heard of an opportunity to take over a polyclinic facility nearby. Sadly, you have to give it a miss. You realise that you do not have enough resources and lenders are hesitant to offer loans since you have a poor credit score.

Your CIBIL score is what speaks of your creditworthiness in front of banks or other financial institutions when you apply for a loan. An individual with low or bad CIBIL score is usually denied loan sanctions. Having a bad CIBIL score can hinder your chances of availing a doctor loan.

Why Is CIBIL Score Important to a Doctor?

To expand their practice and business, you as a doctor might need financial help for it. A CIBIL score can help you get the finances you need. Having a good credit score can fast-peddle your loan application for further formalities. 



But, seeing a bad credit score, banks or other financial institutions are known to reject applications.

What Will Affect Your CIBIL Score?

● Payment dues

Lenders need to know that their money is returned to them in the time given. If you have a payment dues on your credit card, or have ongoing loans, it will tend on influencing your credit history. The CIBIL score helps lenders know how credible you are for a loan. A bad CIBIL score will lessen your chances of getting credit without any hassles.

Amount of utilization

Having many loans and credit cards reflect that you have pending dues to pay. The amounts of those also matter. It is commonly known that the amount of credit you use from what is available to you shows how you manage your funds. It is advisable that you use only 30% of the total credit available to you and pay the bill on time.

● Healthy mix of credits (secured and unsecured)

Availing too many unsecured loans reflect bad credit score. There should be a healthy balance between secured and unsecured loans in your name. This shows the lender that you have securities that you have given for a loan. It holds up your CIBIL score and assures the lenders about your credibility.

● Infrequently checked credit report

Going a long while without checking your credit scores can land you in trouble. It is possible that you may have missed some information. Checking your credit score regularly will ensure that you have no wrongly put information or any technical error. It helps in keeping your credit history clean.

● Too many debts

If you have too many debts, lenders will be hesitant about lending you money. More so, if the debts have bad repayment history. Keeping your records clean, paying your EMIs regularly and keeping a track of your credit are all ways of avoiding too many debts.

● Many recent accounts

Availing a loan when you have recently applied for credit cards or other loans reflect badly on you. It may also give the lender the impression that you are greedy. Your CIBIL score is, hence, affected and it lessens the chances of you getting a loan when you actually need one.

How To Improve Your CIBIL Score

• Pay your dues on time
• Fasten your debt repayments
• Don’t have too many unsecured loans
• Monitor your finances
• Keep your credit history clean

Conclusion

To get a doctor’s loan, your best bet is to always maintain a good CIBIL score. It is certainly a boon. Having a healthy score not only improves your chances of being approved for a loan easily but also helps you earn lower rates of interest. Bajaj Finserv offers a range of doctor loans at affordable rate of interest. You can use the credit given to you on a flexi-loan basis that saves you interest. The doctor’s loan from Bajaj Finserv comes to you in times of need.

How To Clean Up a Low CIBIL Score

CIBIL or Credit Information Bureau (India) Limited is India’s foremost credit bureau. Financial institutions send monthly records of everyone’s credit repayments to CIBIL. Based on these records, CIBIL prepares a Credit Information Report (CIR). It also assigns a credit score to every individual.

This credit score (or CIBIL score) is vital. It shows the individual’s creditworthiness. Creditworthiness is an individual’s ability and willingness to repay outstanding debt. 

A good credit score is a key to getting further credit from financial institutions. This could be in the form of loans or credit cards, for example. A good CIBIL score ranges from 750 to 900.

What if you have a low CIBIL score?

A low CIBIL score is one that ranges from 350 to 550. Such a score can have negative financial consequences for you. Here is a quick sampling of what you can expect:

• Rejection of loan and credit card applications: A low CIBIL score shows poor repayment ability. It may also show that you have heavy outstanding debt. So, financial institutions may reject your credit applications. 
• Higher interest rates on loans and credit cards: Financial institutions may accept your loan or credit card applications. But there may be a caveat—they will charge you higher interest rates. Lenders do this to protect themselves. A borrower with a low CIBIL score poses an inherent financial risk to them.
• Rejection of employment applications: Some employers run a background check on the financial history of potential employees. A low CIBIL score will ring a warning bell to those companies. You could lose a plum position as a result.

Improving a low CIBIL score

A low CIBIL score does not have to be a permanent problem. There are ways to clean up your score. Here are some tips to help:

• Check your credit report: Go through your credit report to ensure there are no mistakes. Check your credit report every six months. If there are any faulty entries, approach your lender or CIBIL to correct them.
• Pay your bills on time: This one seems simple but everyone misses a bill payment from time to time. Set up reminders to help you with this.
• The debt correction method: Do you have multiple debts to pay? Maybe you have more than one loan and some credit card debt. Here is a way to simplify your debt repayment process:

1. List out all your outstanding debt. Arrange the debts in order of most expensive to least expensive. 
2. Pay off the highest debt first. Cut corners if you must. Just focus on getting rid of your most costly debt.
3. Pay off the next highest debt. Do this once you have repaid the highest debt on your list. Then move on to the next highest debt. Continue doing this until you clear all your outstanding debt.

• Avoid applying for loans: Do not take any loans until you clear most of your current debt. A lender might reject your loan application if your loan burden is high. Such a rejection will have a further negative impact on your CIBIL score.
• Avoid taking new credit cards: Do not accept a new credit card until you clear your debts. Multiple credit cards can be an indicator of a high debt burden. 
• Pay the minimum amount due on your credit cards: Even while you tackle the rest of your debt, continue to make your credit card payments. Do not neglect this. If possible, pay off more than the minimum amount. 
• Reduce your dependency on credit cards: This is one way to maintain your financial independence and reduce debt. Try to stop using your credit cards for a few months. Remember, credit cards charge very high interest. This will only add to your financial burden. 
• Do not cancel old credit cards: Cancelling old credit cards might seem like a way to improve your CIBIL score. But this is not the case. Rather than cancel old credit cards, aim to use them infrequently.

Conclusion

Cleaning up a low CIBIL score will not happen overnight. It takes time, patience, and financial planning. This is why experts recommend that you improve your CIBIL before applying for a personal loan. 

There are so many easy ways available to Improve your CIBIL Score and Once you improve your CIBIL score, work on maintaining it. You can do this by following the best financial practices.

4 Factors that Affect Personal Loan Interest Rate

A Personal Loan is one of the quickest forms of credit you can get. It doesn’t need security, and the documentation for it is very minimal. 

Although all of this makes it seem like Personal Loans are easy, there is a catch, the interest rates. Personal Loan interest rate can be pretty high, ranging from 14% and 27%.

The high interest rate is because Personal Loans are unsecured loans. To cover any loss in the event of a possible default, lenders tend to charge heavy interest. 

This risk factor attached to a borrower, is what decides the rate of interest a Personal Loan. Your income, credit score, and relationship with the bank have a role to play in determining the interest rate on Personal Loan. 

Salaried employees and self-employed professionals are eligible for Personal Loan. But the terms of the loan, which include the interest rate, varies. Here are some factors that impact the interest rate at which you can get a Personal Loan.

1. Your Income—How Much You Earn

How much you earn has a direct bearing on the interest you pay on the Personal Loan. If your monthly income is more than Rs.50000, you can get a loan at interest rates varying between 16% and 20%. 

If you earn more than a lakh, you can negotiate with the lender to offer you a loan for 12%. To sum up, the higher your income level, the more you can negotiate your interest rate. 

2. Your Credit Score

The other factor that affects the interest rate is your credit score. The credit score is a reflection of your credit history. This score is compiled by the CIBIL authority. They have a variety of criteria. 

This includes repayment of current and past loans and credit card bill payments. A solid credit history can help you get loans at lower interest rates. The higher your credit score (750+), the more easily you can get a Personal Loan. 

In fact, getting a Personal Loan with bad credit score is little bit difficult. So, if you decide to get a loan, make sure your credit score is high.

If you have a low credit score, you can work to increase the credit score by maintaining financial discipline. 

Paying off your bills on time, repay your loans and service your EMIs before the due date. You can also lower the percentage of credit utilisation on your credit card. All of this helps ensure that your credit rating goes back up. 

3. Where You Work—Employer Profile

The standing of the organisation you work for plays a crucial role in determining interest rate. Borrowers working for reputed companies are perceived to have a stable career and steady income. 

This is trust that they’ll repay loans on time. This security is what drives lenders to offer Personal Loans at a lower interest rate.

4. Your Relationship With The Bank

A long standing customer of a bank can get a low interest rate Personal Loan. That’s because the bank has knowledge of the customer’s history based on past dealings. So, they’d be more than willing to give you a low interest rate to a loyal customer. 

When you need a Personal Loan, take these factors into account. Even if you don’t earn a 6 figure salary, you can still get a Personal Loan at a low rate of interest. Make sure that you have a high credit score and good relation with your banker.