The Credit Information Bureau (India) or Cibil score is an important factor that determines your credibility and eligibility to lenders for loans. As the Cibil score tells your creditworthiness, it has a direct bearing on your loan application, including denial of loan or grant of loan on favourable terms.
Previously, you could check your Cibil score through a long-drawn process. You had to send an application along with identity proofs and a fee through cheque or demand draft. Reports were received by post, or were collected by banks and lending institutions at the time of loan or credit card application.
But now, you can check your Cibil score by using only your Permanent Account Number (PAN). Here’s a step-by-step guide for it.
What Is A Cibil Score?
The Cibil score is a three-digit number that ranges between 300 and 900, and indicates your creditworthiness. The higher the score, the better the chances of acquiring loans or credit cards on favourable terms and conditions. This score is helpful in giving lenders an idea about the reliability of the payback of the loan. A good Cibil score does not just increase the chances of getting credit approved, but also ensures disbursal of credit on favourable rates of interest and terms.
Why Is PAN Card Important For Credit Report?
PAN is a 10-digit number allotted to every taxpayer of India. It links all your financial transactions, thereby making it easier for credit bureaus to track your credit history. This linkage enables lenders to access a consolidated report of your credit behaviour once you apply for loans or credit cards.
Does Changing PAN Card Have An Effect On CIBIL Score?
Duplicate PAN Card: The loss of your original PAN does not affect the Cibil score because your PAN number does not change, and it is linked to your credit history.
New PAN Card: Applying for a new PAN card can complicate your credit history. Since your financial transactions are linked to your PAN, it is crucial to use only one PAN card to maintain a consistent and accurate credit profile.
Steps To Check Your CIBIL Score Using PAN Card
Here are the steps to check your Cibil score online for free.
▪ Visit a genuine credit score website.
▪ Enter your PAN, date of birth, phone number, and email address.
▪ Select the option to receive updates via WhatsApp if so you so desire.
▪ Click on “Get a Free Credit Score”.
This way, you can get quick access to your credit score without the need of an OTP
Factors That Influence Your CIBIL Score
Understanding the factors that affect your Cibil score can help you maintain or improve it.
Payment History: Repayment of loans and credits along with timely payment of credit cards is a must. Missed or delayed payments significantly reduce your credit score.
Multiple Credit Applications: Trying to acquire multiple credit-related products within a short timeframe hurts your credibility and lowers your credit score.
Credit Utilisation Ratio: Whenever you use more than 30 per cent of your available credit limit, it indicates your over reliance on credit, thus, negatively impacting your credit score.
Credit Mix: A mix of secured (home, auto loans) and unsecured credit like credit cards, personal loans improves your credit score.
Why Your Cibil Score Matters?
A good Cibil score affords better financial opportunities. Tracking and maintaining a good score can help you secure loans on favourable rates of interest and give you better access to credit in times of need.
