How to Check Your CIBIL Score for Free Without Lowering It

In today’s fast-paced world, when it comes to applying for loans or credit cards, your CIBIL score plays a crucial role in your financial journey, determining your creditworthiness. The three-digit number is used by lenders to assess your financial health and your ability to repay the loans in time, which impacts the approved loan amount, interest rate charged and terms and conditions. However, many people hesitate to check their credit score, thinking that it might lower their score and affect their chances of getting loan approval.

In this guide, we’ll solve this problem and explore how to check your credit score using a CIBIL score calculator or credit score monitoring service, discuss the reasons to check it regularly and tips to maintain it.

Understanding CIBIL Score

Also known as the credit score, the CIBIL score is a three-digit number ranging from 300 to 900, indicating an individual’s creditworthiness and enabling them to obtain loans and credit cards at more favourable rates and terms. Lenders use this score to evaluate the current financial condition of borrowers, and a good score leads to quicker loan application approvals, lower interest rates, and better terms.

Here’s how the score is interpreted:

• 300-550: Poor
• 550-650: Average
• 650-750: Good
• 750-900: Excellent

Does Checking Your Score Affect It?

The answer is no. It is one of the common myths that checking your CIBIL score lowers it. However, that’s not true. 

There are two types of credit score checks:

• Soft Enquiry: Checking your score independently, with the help of online sites, does not affect your actual score.
• Hard Enquiry: When a lender checks your score after you’ve added an application, it’s a hard enquiry. Multiple hard enquiries in a short period can affect your score and lower it, resulting in a reduction of your chances of getting approvals.

Steps to Check Your Credit Score Without Lowering It

Follow the steps below to check your credit score without lowering it: 

• Visit the official website of the CIBIL score.
• Register by adding the required information or logging in with your credentials. 
• Navigate to the free score checking section and complete the form by entering all the required details.
• Once your details have been verified, you’ll get the credit score report.

Advantages of a Good CIBIL Score

Having a strong credit score is beneficial in many ways. Here’s how:

• Lenders offer more credit limits, providing you with more financial freedom.
• You can achieve loans at lower interest rates, as a good score indicates that you are a reliable borrower.
• Individuals with a good CIBIL score receive quick loan approvals, which enables them to negotiate better terms. 
• A good score opens the door to other premium financing options with exclusive benefits.
• You can get access to pre-approved loan offers. 
• A good score can potentially reduce processing and other additional fees, thereby lowering the loan’s cost and making it more budget-friendly.

Reasons to Check Your Credit Score Regularly

Let’s explore some of the reasons why you should consider checking your credit score on a regular basis:

• It helps to analyse your loan and credit card eligibility, making the process convenient.
• By identifying errors early, you can sort them out quickly. 
• Frequent checks help to improve your credit score, especially when you’re working on improving it.
• Knowing your CIBIL score helps you steer clear of unnecessary hard enquiries, which can lower your score. 

Tips to Maintain a Good Score

Keep the following tips in mind to achieve a good score:

• Pay your EMIs and bills in a timely manner.
• Try not to submit multiple loan applications close together. 
• Maintain a low credit utilisation ratio.
• Keep a regular check on your score.

Final Thoughts

Checking your CIBIL score beforehand gives you the time to improve it and increase your chances of getting quick loan approvals at lower interest rates and better terms. While checking the score, trusted platforms like Bajaj Finserv offer a wide range of loans and credit cards with exclusive benefits to the users. The application is undoubtedly user-friendly, secure and easy to navigate. Be sure to regularly review your report and follow the above tips to maintain a good score.