CIBIL Score: What is credit score, how to check it for free? know benefits here
CIBIL score is a three-digit number that ranges from 300 to 900 and represents an individuals creditworthiness. A good CIBIL score helps you in availing loans at competitive interest rates from financial institutions.
CIBIL Score: In simple terms, CIBIL score is a three-digit numeric summary of your credit history. It ranges from 300 to 900 and represents an individual’s creditworthiness.
The score is derived using the credit history found in the CIBIL Report, which is also known as Credit Information Report (CIR). Essentially, CIR is an individual’s credit payment history across loan types and credit institutions over a period of time. However, it must be noted that a CIR does not contain details of one’s savings, investments or fixed deposits.
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A higher CIBIL score means you are a responsible borrower and repayment behaviour is as per the lender’s norms. Good CIBIL score not only improves the chances of your loan’s approval but also ensures faster processing of your loan application. According to CIBIL, a score above 700 is generally considered good.
How one can check CIBIL score for free?
If you are a Paytm user, follow the below given three simple steps to check CIBIL score for free.
Step 1: Login to your Paytm app and tap on Show More icon on the home screen
Step 2: Select ‘Free Credit Score’ in the Featured section
Step 3: Enter your PAN Card number and date of birth. If you are a new user, you will receive an OTP for verification of your profile.
Besides the CIBIL score, one can also view detailed credit reports including active credit card and loan account details and compare their credit ratings with others on a city, state as well as national level.
How to check your total loan exposure?
Users can click on “All Loan and Credit Card Accounts” to see total loan exposure connected to the bank account that is registered with Paytm.
A detailed list of all the loan accounts currently active will be pulled up on the screen along with name, sanctioned amount, current balance, tenure, and rate of interest.
This snapshot provides users a comprehensive view of the financial situation and helps in taking informed financial decisions.
By clicking on “Detailed Report”, users can also find how their score fares alongside those of other Paytm users in your locality, city and the rest of the country.
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