A CIBIL score is a three-digit number that indicates your creditworthiness, ranging between 300 and 900. It is crucial for loan approvals, determining interest rates, and credit card applications. A higher score (closer to 900) increases your chances of getting favorable financial terms, while a lower score can lead to loan rejections or higher interest rates.
You can check your CIBIL score for free once a year on the official CIBIL website or use third-party financial platforms like Paisabazaar or BankBazaar, which offer free credit score checks more frequently. The process involves signing up, entering your details (like your PAN number), and receiving your credit score and basic credit report.
Your CIBIL report includes personal information, credit history, and a list of past credit inquiries. A score above 750 is excellent, while scores below 650 are considered risky by lenders.
To improve your CIBIL score, ensure timely bill payments, keep credit utilization below 30%, avoid too many credit inquiries, and regularly monitor your report to catch any errors.
