What is CIBIL Score?
This is a three-digit number that represents your credit worthiness, ranging from 300 to 900. The higher your score, the more likely you are to get credit cards or loans on favorable terms, and the more likely you are to keep your credit history clean. Financial institutions use this score to assess your creditworthiness.
Does updating your PAN card affect your CIBIL score?
To maintain clear financial records, it is advisable to stick to a single PAN. If you lose your PAN card, applying for a duplicate will not affect your CIBIL score, as your original PAN number remains linked to your credit history. Moreover, if you apply for another PAN card it will disturb your credit history as all financial transactions are linked to your PAN.
How to Check Your CIBIL Score Using Your PAN Card Without OTP
Step 1: Go to a trusted website to check your credit score.
Step 2: Enter your PAN number.
Step 3: Provide your date of birth, phone number and email address.
Step 4: Choose to receive updates via WhatsApp.
Step 5: Click “Get Free Credit Score” to view your score.
How to Identify Good, Fair, and Bad Credit Scores
Your CIBIL score reflects your creditworthiness. Scores above 800 are excellent, 750-800 are good, 700-750 are fair, and 650-700 are poor. Excellent and good scores increase the chances of loan approval, while fair scores may require improvement. Poor scores indicate financial struggles, leading to loan denials or high interest rates.
How to Improve Your CIBIL Score Fast
Pay bills on time: Make sure to pay loans, EMIs and credit card dues on time to avoid late payment penalties, which can hurt your score.
Reduce the use of credit: Aim to use less than 30% of your credit card limit to demonstrate responsible credit use.
Clear outstanding debts: Pay off balances on loans or credit cards to improve your score.
Check your CIBIL report: Regularly monitor your CIBIL report for errors or discrepancies and correct them.
Avoid multiple credit applications: Too many inquiries in a short period of time can negatively impact your score. Apply only when necessary.
Maintain a healthy credit mix: A balanced mix of secured and unsecured credit can improve your score.
Keep old accounts open: Length of credit history matters, so keep your old credit card accounts active.