Your CIBIL score is a piece of important financial information that affects your life in more ways than you can imagine. You need it to get loans, better interest rates, and even jobs in some cases. However, the only way to obtain it is to apply for your CIBIL report. The good news is that it’s quite easy and even free if you qualify. But first things first:
CIBIL report is a document that contains all the details of your past loans, credit cards, bank accounts, and personal details viz. name, address, income, etc. It’s created and updated by the Credit Information Bureau (India) Limited.
The following are some of the main reasons to check your CIBIL report:
It doesn’t matter what kind of loan you want- personal loan, home loan, car loan, etc. the lender will always check your credit score which is given in your CIBIL report. They usually approve the loans only when the score reaches a certain level, which in the case of CIBIL is 750. So, you can check your report to see where you stand, and if there is a need for improvement, then you can take appropriate steps for the same.
CIBIL updates your report based on the information provided by your banks. However, there is always a chance of them providing the agency with false information. For instance, you may have repaid an old loan but your lender may still tell CIBIL that you are a loan defaulter.
By checking your credit report, you can look for mistakes or discrepancies that may hurt your rating. Even if there is a small typo in your personal details like name or address, it can cause an adverse effect on your score. However, you can contact the bank and bring their attention to the issue. Once they inform CIBIL of the same, you can expect your score to improve automatically in a few weeks once the update is reflected in the database.
Identity theft is a serious crime which can ruin your credit report and cause massive financial loss. In this, a trickster can steal your personal documents like Aadhaar, PAN card, etc. either through phishing emails or by fetching the photocopies of these documents that you may have misplaced or simply discarded. They can use your ID to create new accounts of credit cards or loans. If you are not aware, then the bank may create debt in your name which can cause legal ramifications later on. However, you can easily avoid this by checking your credit report and looking for anomalies like unfamiliar inquiries about loans or new loan accounts.
As per an RBI mandate that’s effective since 2017, CIBIL and other credit rating agencies are required to provide one free credit report to every user every year. You too can obtain yours online by following these steps:
This is how you can get your CIBIL score for free, at least once per year. It’s not just an optional service but rather highly recommended as you can prevent major problems like becoming a loan defaulter, becoming a victim of identity theft or false information, etc. So, make sure that you check your report every year without fail.