Follow These Steps to Check Credit Score Before Availing a Personal Loan
Your credit score plays a deciding factor for any unsecured loan. It stands true in the case of a personal loan as it is a collateral-free loan and your CIBIL score is a crucial parameter to consider before offering you a loan. It enables lenders to understand your creditworthiness, loan repayment behaviour, and your credit report, on which credit score is based.
Your CIBIL score determines various aspects of a personal loan, such as the principal loan amount that you are eligible for and also the rate of interest charged. If you have maintained a poor credit score, your loan application for a personal loan will get rejected on the spot. Whereas a good score indicates that you are credible and have the financial capacity to repay the loan amount on time.
Therefore, if you want to avail yourself of a personal loan to manage your finances without putting any burden on your pocket, you should run a CIBIL score check beforehand. There are multiple ways to check your credit score online. To do so, you can either visit your lender’s website or the CIBIL’s web portal.
Understanding CIBIL score
The underlying explanation helps you understand the impact of credit scores on your application across different ranges.
| Credit score range | Impact on a loan applicant |
| A CIBIL score between 300 to 549 | In this range, you are considered inadequate. It would be difficult to receive a personal loan. If you still need a personal loan, then you must have a stable job, income, tax fillings, and bank balance. |
| A CIBIL score between 550 to 649 | It is considered to be fair or an average credit score. There are only a few lenders in the loan market that can offer you personal loans. However, you may have to incur higher interest rates. |
| A CIBIL score between 650 to 749 | This is a good CIBIL score, lenders may consider your application, but you may still not be able to negotiate on interest rate terms. |
| A CIBIL score between 750 to 900 | If your credit score ranges between 750 to 900, then you are perceived as a credible lender with higher creditworthiness. A healthy credit score indicates that you will default on your loan payments. It does not only assure you the approval, you will also have an upper hand to negotiate loan terms |
Do not lose hope if you have a lower credit score. Your score can be improved over time by decisive measures and steps. Individuals with lower CIBIL scores can follow the underlying steps to reach a good credit score.
- Your credit score can be impacted due to minor mistakes and errors in your credit report. You must check your credit report for errors and rectify them for improvement.
- If you maintain your credit cards and pay the bill in full and on time, you will likely have a good credit history reflected on your CIBIL report.
- Do not forget to customize your credit cards to maintain a low credit utilization ratio.
- Opt for loans that have longer repayment tenure. Longer tenure would reduce the chances of defaulting on monthly EMI.
How to run a CIBIL score check?
As per the RBI’s mandate, credit information companies operating in India have to provide each individual’s credit history online. You can receive one credit score rating for free per year. Here is how to check your credit score before applying for a personal loan.
- Visit the CIBIL’s web portal.
- Click on the tab ‘Get your CIBIL score’.
- First-time users will have to create an account by entering: name, email address, and mobile number along with a login username and password.
- Enter your personal information like date of birth, address, PAN Card, or Aadhar Card number. You have to make sure that all details are correct.
- Click the tab ‘Accept and Continue’.
- You will need to verify your identity by entering the OTP generated and sent to your registered mobile number or email address.
- After completing the verification process, a new window will open to confirm your enrolment.
- Go to the dashboard and view your credit report.
Now that you have your login details, you can directly log in with your username and password to view your CIBIL credit report.
You can also check your credit score on your lender’s website. For instance, if you are applying for the Fullerton India instant personal loan, follow the steps below to get a free credit score in less than two minutes.
- Visit fullertonindia.com/cibil-score-check.aspx
- Select whether you are a salaried person or self-employed.
- Click on the ‘Continue’ tab
- Add your personal details, your employer, and income.
- Verify your identity by entering the OTP sent to your mobile number.
- Add your PIN code, PAN number, and email address.
- You will get your credit report to your registered email address
A word of advice
Always maintain a healthy credit score to avail of the best deal. A higher credit score means a greater chance to receive a lower interest rate with value-added features. If you do not know your credit score, you can visit your lender’s or CIBIL’s web portal to get your credit report. Your credit report could tell you whether you are eligible for a certain amount as a loan.
