CIBIL score is a 3-digit number between 300 and 900 that TransUnion CIBIL derives from individual credit reports. One can easily obtain a credit report using his/her PAN number. The PAN, being linked to tax payments and financial accounts, facilitates data aggregation by CIBIL.
Most financial institutions offer free CIBIL score checks by PAN, allowing users to understand its significance and interpret their credit reports. This article will provide guidance on how to check CIBIL score by PAN card, what a CIBIL score means, and how to read a credit report.
How to check the CIBIL score by PAN card?
These are the steps to follow for checking CIBIL score using PAN number:
Step 1: Visit the CIBIL’s official website.
Step 2: On the top right corner of the page, click on the ‘Get Your CIBIL Score’ option.
Step 3: Select a subscription method.
Step 4: Furnish PAN number, date of birth, and mail address and select a gender.
Step 5: Create a password for the account.
Step 6: For ID type select ‘PAN’ and provide PAN number.
Step 7: After identity verification, fill out other necessary details.
Step 8: Read the terms and conditions, accept it, and click on ‘Proceed to Payment’.
With that, an individual is all set to view their credit score on CIBIL’s website.
What does a particular CIBIL score mean?
After getting access to one’s CIBIL score and reports one must understand what it means to have a particular score. Here is a list that can help:
- Less than 600
This score indicates that this individual has a history of delayed loan EMIs or credit card bill payments. Banks and NBFCs would consider that the individual is in no condition to repay a loan.
- 650 to 699
Individuals with this score most likely struggle to meet payment deadlines. As it indicates a challenge in timely payment all financial institutions will be hesitant to approve a loan.
- 700 to 749
In this range, it is easier to obtain loans from most financial institutions as this score indicates good credit behaviour. However, it may still not be high enough to get the best interest rates.
- 750 to 849
Lenders consider scores above 750 to be great. It indicates a timely and consistent payment history with a lower risk of defaulting.
- 850 to 900
These numbers are considered excellent by all commercial banks and NBFCs. With a CIBIL score in this range, individuals looking to get a home loan would have no problem securing the most favourable interest rates and more.
How to read the CIBIL report?
A CIBIL report has four sections. The following list will clarify what each section holds:
- Personal information
This section holds the account holder’s name, contact information, age, residence, and so on. One should check if all the information is accurate and updated.
- Account information
This section holds information on the present and past credit accounts. It is a track record of the individual’s financial activities. It includes the amount of loans, types of credit they have obtained, rate of repayment, etc.
- Enquiry information
When a borrower applies for credit the lender will visit their credit record. These visits are recorded in this section. More hard enquiries indicate a borrower who is overly seeking credit. This has a detrimental effect on their credit score.
- CIBIL score
Numbers between 300 and 900 will determine an individual’s creditworthiness. Depending upon it one will be eligible for higher amounts of loan for lower interest rates or not.
Many top-rated financial institutions provide pre-approved offers for their existing customers. It enables them to go through the application process smoothly and get considerably higher loan amounts at competitive rates. So, individuals looking for a home loan, a personal loan, and so on should visit the lender’s website and check for the best offers, features, and eligibility criteria.
Knowing how to check CIBIL score by PAN card is crucial as it is critical for everyone’s financial well-being. It enables one to quickly analyse the report and make decisions that can improve creditworthiness.