How can i see what my credit score is

Credit scores are calculated by the credit bureaus in the country after taking into consideration several factors like the length of your credit history, repayment records, credit inquiries, among others.

When you apply for a credit card or a loan from a bank of NBFCs, having a higher credit score may entitle you to receive further benefits such as a higher loan amount, lower interest rate and your choice of tenure to repay the loan.

Steps To Get Your Free Credit Score

• Visit credit score Page
• Enter your first and last name.
• Add your mobile number and e-mail ID.
• An OTP will be sent to your mobile number for verification.
• The next step would be to verify your age.
• Your credit score and your report will be then displayed on the screen.

Credit Score Range and What It Means

A credit score in India ranges between 300-900. You should always take measure to bring your credit score closer to 900. A higher credit score increases your chances of getting a good deal on personal loans as well as credit cards.

CIBIL Score Range

The CIBIL score (a 3-digit number) gives a summary of the credit history from several details on the Credit Report such as ‘Enquiries’ and ‘Accounts’. The CIBIL score ranges between 300 and 900. The higher the CIBIL score, the easier it is to get a loan or a credit card approved. Making late payments and multiple enquiries will lead to the CIBIL score reducing. Any score of 750 and above is considered as ideal and you will qualify for various credit cards and loans. In case your credit score is less than 750, you will find it difficult to avail a loan from NBFC and banks.

In case the loan is approved, the interest rates will be high if the CIBIL score is close to 750. Banks and NBFCs will reject the application if the credit score is low. The four important sections of the credit report are Credit Enquiries, Public Records, Account History, and Credit Summary. The various factors that are considered by CIBIL when they compute the credit score are the credit mix, new credits, tenure, credit utilisation, credit balance, and repayment history.

Experian Score Range

The Experian score ranges between 300 and 850. A credit score in India of 800 and above is considered excellent. A good credit score is anything above 700. The higher the credit score, the more confident banks and NBFCs are that you will be able to repay the loan. Most credit scores range between 600 and 750. Various lenders such as NBFCs and banks provide loans and credit cards based on the credit score. Approval of car loans also depends on your credit score. The better the credit score, the down payment and the interest rates will be low.

Credit scores ranging from 300 to 579, 580 to 669, 670 to 739, 740 to 799, and 800 to 850 are considered to be very poor, fair, good, very good, and excellent. The credit score depends on several factors such as derogatory information, recent credit applications, credit history, credit history length, credit utilisation, and payment history. Some of the factors that do not influence the credit score are details not available in the credit report, child support payments, where you stay, your income, your employment, and your age. Paying all your bills on time and not making several enquiries will ensure that your credit score does not drop.

Who Computes Credit Score?

Your Credit Score is computed by

When you make a transaction—the one that is relevant to determine your score—banks send details about it to all four credit bureaus. To send details to all credit agencies is a mandate by the RBI. Essentially, banks keep Credit Information Companies up-to-date about your monetary habits. If a bank needs to check online credit score, they can approach any one of the bureaus. It doesn’t matter which one because all will have the same score for you– all four are equally authoritative and on par with each other.

After receiving information from the bank, credit bureaus get down to the task of collecting more information about your financial habits from other banks and financial institutions. The credit bureaus then processes this information to formulate what is called a Credit Report.

Why Should I check my Credit Score?

It is very important that you keep a close eye on your Credit Score. It is the best way to gauge your chances to get a line of credit. Another reason why you should track your score is to know if it dips, or if an error has been made by credit agencies while calculating your score. This will help you make timely amends.

Why is BankBazaar Giving me my Credit Score for Free?

BankBazaar feels that you should always be in complete command of your personal finances. In order to help you with this goal, we have made provisions for you to check credit score free. Knowing your Credit Score before applying for a loan can help greatly.

If you have a good score, you can be rest assured that your loan or Credit Card application will be processed without any hassle. You can even leverage a good score to ask your lender bank for better rates of interest and additional benefits. On the other hand, seeking credit with a poor score will further lower your score. Let’s not even imagine getting approval for a credit line. Hence, check your Credit Score online before you apply for a financial product. Work up the score if it’s not in the acceptable range.

TIP: Credit agencies review and renew your score every few months. If you have a poor Credit Score, start managing your money wisely and pay your dues on time for a few months. Credit agencies will reward you by boosting your score.

Does my Credit Score Get Impacted if I Enquire About it?

It depends on the kind of enquiry being made. There are two types of enquiries – hard and soft enquiry. Hard enquiries send your Credit Score down by a few points, while soft enquiries do not impact your Credit Score.

An enquiry made by an individual is called a soft enquiry. BankBazaar will make a soft enquiry on your behalf when getting your Credit Score from Experian. Hence, this will not impact your Credit Score in any manner. Moreover, you can get your free credit score.

A hard enquiry is when a financial institution checks your Credit Score to take a decision on your credit application. Every time you apply for a loan or a Credit Card, the lending institution checks your score. Each time a bank checks your score, your score will dip by a few points.

TIP: If you are applying for a loan or a Credit Card, do not apply to many banks at the same time. Too many enquiries will hurt your Credit Score.

What Hurts your Credit Score?

It is understood that having high balances on your credit card can significantly reduce your credit score. Apart from that, there are several other factors that can hurt your credit score:

• Being late on your credit payments.
• Completely ignoring your loan dues/credit card bills.
• Creditors charge off accounts when credit card bills are not paid on time. The status of having your account charged off is one of the worst incidents that reflects on your credit score.
• Lenders use third-party debt collectors to retrieve the loan amount from you, in case they do not receive payments. Having your account sent to collections reflects very poorly on your credit score.
• Filing for bankruptcy can have a devastating effect on your credit score.
• When you request to close a credit card that has an outstanding balance, your credit limit drops to Rs.0. This is similar to a situation where you have maxed out your credit card.
• Closing old credit cards shortens your credit history. This has a negative impact on your credit score.
• Applying for multiple credit cards or loans within a short duration makes your credit score plunge. Hence, it is advisable to limit the number of applications.
• Having only one type of credit account will negatively impact your credit score. So, you should look to maintain a mix of loans and credit card debts and make consistent payments on time.
• If you fail to check your credit report occasionally and fix errors, if any, your credit score can be hurt. It should be understood that credit reporting bureaus also make mistakes while creating credit reports. If you do not monitor and correct your report, it may cost you a lot in the future.

Calculation of Credit Score

Credit bureaus in the country compute credit scores after taking into consideration several factors such as your credit history, repayment behaviour, and credit type, among others. There are four credit bureaus in the country - TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. They are licensed by the Reserve Bank of India (RBI). The financial institutions in the country send your credit details on a monthly basis to these bureaus. Each credit bureau has its own algorithm and method of calculating scores.

Let’s take a look at the four main factors and their impact on your credit score:

Benefits of a good Credit Score:

If you have a good Credit Score, you can avail loans and Credit Cards faster and with ease. Check yours now!

Get The Best Credit Card - A good Credit Score may get you the best Credit Cards. Get a feature-loaded card and reap the benefits.

Quick Loan Approval - A good Credit Score works like an expressway for your loan application. Banks may approve your application quickly and readily.

Better Interest Rate - With the backing of a good Credit Score, you can bargain for a lower rate of interest on loans and Credit Cards.

Loans Made More Affordable - Loans come saddled with processing fees and many other charges. You can bargain your way out of some of these charges with a good Credit Score.

Check your Credit Score right away and see if you are eligible for all these benefits. You can check your score on BankBazaar at zero cost.

Will Checking Your CIBIL Report Repeatedly Hamper Your Score

Many people worry that if they make frequent credit report inquiries or check their credit report, it will negatively affect their credit score. The inquiries are actually made by financial institutions and banks when you apply for a new credit. This is known as ‘hard inquiries’. Requesting them to make numerous hard inquiries within a short span of time, might negatively impact your credit score. Banks and financial institutions frequently checking and enquiring about your CIBIL report may suggest an increase in your debt or might even show you as a credit-hungry person.

If you make a soft inquiry (checking your own credit report), will not affect your credit score. When you check your own credit report, it shows that you are responsible and are keeping track of any errors in your report, and trying to correct them. Make sure to check your credit score often to keep track of any mistakes that could arise. You can always get a free credit score from the CIBIL website.

Why Do Lenders Check Your CIBIL Score Before Approving Your Loan

CIBIL Score is a 3-digit numeric value. This figure reflects your credit worthiness. The score is determined by using the information in your ‘Accounts’ and ‘Enquiries’ sections. These will be found on your CIBIL report. The CIBIL score ranges from 300 to 900.

A score closer to 900 is a very good score. Lenders will look into your credit score to see how credit worthy you are. The closer your credit score is to 900, the higher are the chances that the lender will approve your loan application. A high credit score reflects a high credit history and shows the lender that you are capable of repaying the loan.

4 Credit Score secrets

Credit Score is one of the most misunderstood topics in the financial book. Here are four secrets to help you understand your Credit Score better.

Credit Score and Credit Report

Your Credit Score is calculated based on information present in your credit report. Your credit report presents details about your credit accounts, credit application and debt repayment, among others.

Checking Your Score Will Not Hurt It

When you or a company enquires about your Credit Score, it’s called a soft enquiry and it does not hurt your credit score.

Credit Score Math

There are five prime factors that go towards deciding your Credit Score. They are - debt repayment, credit utilisation ratio, average credit age, type of credit account (secured / unsecured) and Credit Score enquiries made.

Keep an Eye On Fraud

You did nothing wrong and yet your Credit Score is low? Please go through your Credit Report thoroughly and immediately report any unauthorised activities to your bank to correct your score.

Before you plan to get an application approved keep a track of your credit score on regular basis either by taking free CIBIL score or subscription based CIBIL score. Scores normally range from 300-850.

List of Credit Information Companies in India:

• TransUnion CIBIL Limited: (earlier known as - Credit Information Bureau (India) Limited) is the first Credit Information Company (CIC) of India that was founded in August 2000. The company collects and maintains records of an individual’s repayment habits related to loans and credit cards. These records are sent to TransUnion CIBIL Limited by the member banks and financial institutions on a monthly basis. The information received from these establishments are used to create Credit Information Reports (CIR) and credit scores. These reports and credit scores are provided to lending institutions such as banks in order to help them make lending decisions.
• Experian Credit Information Company of India Private Limited: With headquarters in Dublin, Republic of Ireland, Experian uses its own methods of calculation to create credit reports. The credit report from Experian has information of an individual's credit and loan history that are bought as credit reports by various banks in India. Similar to TransUnion CIBIL Limited, Experian collect information from the member banks and other establishments. The lenders are required to pay a fee to obtain credit reports from Experian.
• Equifax Credit Information Services Private Limited (ECIS): One of the oldest credit information companies of USA, Equifax is also the largest credit reporting agency in the US. Headquartered in Atlanta, Equifax provides credit reports for individuals as well as businesses. Equifax has tied up with various banks and institutions in India that help the company in creating credit reports and assessing credit scores.
• CRIF High Mark:Considered to be one of the few credit information company that specialises in analytics, scoring, and credit management solutions. CRIF High Mark creates credit reports based on the information collected from banks, Income Tax Department, and other banking as well as non-banking companies. The credit reports from CRIF High Mark are available against a fee. There are many Indian banks who have tied up with CRIF High Mark to create reports and to assess their borrower's financial credibility.

Why Credit Reports are Used?

• Determining creditworthiness
• Reviewing missed/late payments
• Checking the credit score online
• To analyse all credit and loan accounts under one platform
• Reporting errors on the report
• Making effective landing decisions, etc.

The Application Process for Obtaining your Credit Report

Most CICs offer credit reports through online and offline mediums. The individual will require producing of required details and make a payment to get his/her credit report.

The following documents and details are required for obtaining a credit report online:

• Name
• Date of birth
• Address
• PAN card number
• Identity authentication

The following documents and details are required for obtaining a credit report offline:

• Visit the CIC's site to download and fill out the form requesting for your credit report
• Self-attested and scanned copy of any of the Proof of Identity (PoI) such as PAN card, Driving Licence, etc.
• Enclose a Demand Draft (DD) that is payable to the relevant CIC for the required fee
• Mail the documents along with the DD to the address mentioned on the CIC's website

What is the Difference between a Credit Score, Credit Rating, and a Credit Report?

Importance of Credit Reports for Companies and Businesses

Similar to individual credit reports, the CICs prepare credit reports and assign credit ratings to businesses and all other types of firms. The credit report for businesses is closely reviewed by suppliers and government agencies while providing utility and business contracts.

The credit reports for businesses provide information related to the establishment, owners/directors, employees, profit and loss, liability, assets, pending court cases (if any), and various other details. These type of credit reports can be expensive based on the amount and type of information it offers.

Understanding the Credit Reports through key terms

NA or NH: If you never owned a credit card or took a loan, there are chances that you will see an NA or NH on your credit score. NA or NH indicates that are there no, little, or insufficient credit activity to create a report or to generate a online credit score.

STD: Applicable to an individual's credit report where the payments are made with the due dates.

SMA: Applicable on a credit report when the borrower has delayed the repayments.

DBT: This indicates a doubtful situation where the credit information has been inactive for over 12 months.

LSS: A credit report can be remarked as LSS if a lender reported the loan/credit card account as loss or if the account remains as a defaulter for a longer period of time.

DPD: Days past due (DPD) indicates the number of days that the account has not received a payment. Written Off/Settled Status: In a situation where the borrower could not make the repayment but came to an agreement with the lender for either a repayment plan or a settlement will indicate a written off or settle status.

Reading a Credit Report

A credit report is a detailed account of a person’s credit history. The credit report will include details of your credit accounts, like, credit cards, auto loans, home loans and any other form of credit availed from a registered lender. The credit report will also include details like payment history, credit limit and account balance, opening date of credit, status of loans (close or open, paid in full, not paid in full). The report will also include new credit inquiries, collection records and public records, for cases in which an individual has filed for bankruptcy or a tax lien. A credit report can seem like quite an intimidating document to read, but listed below is a section-wise breakdown of how a person should read his/her credit report:

Personal Information: This section of the credit report will contain information pertaining to the individual’s identity, such as, the person’s name, address, current and previous accounts, date of birth, etc. An individual should check the details provided under this section, if there is an incorrect address in the report or the person’s name has been misspelled, he/she should report this to the Credit Rating Agency (CRA) as this could be a sign of wrong data being reflected in the report or credit fraud.

Account Information: This section of the credit report will carry information pertaining to the person’s present and past credit account. The individual should check the details of this section carefully as this is quite a detailed section. The following details should be checked:

• Date of opening
• Name of creditor
• Current balance
• Highest balance/credit limit
• Monthly payment history
• Account type (Instalment, revolving, open)
• Account ownership (Individual or joint)
• Payment status

Public Records: This section of the Credit Report will list and bankruptcies filed by the individual, tax liens availed by the individual or collection accounts. The dates provided in this section should be checked as they will directly affect how long they will appear on an individual’s credit report and affect the person’s credit score.

Inquiries: This section carries data pertaining to any inquiries made by companies regarding an individual’s credit score. If an individual applies for multiple lines of credit, this could affect his/her score negatively. In most cases inquiries do not affect a person’s credit score, as they are soft inquiries by lenders for promotional purposes. A soft inquiry is generated when the request for the credit report is not related to the individual’s request for credit.

T.I.P.S. to get a great Credit Score

A great Credit Score is anything above 800. If a bad Credit Score is the bane of your life, you can use the following tips to send it soaring. Want to know your score?

Be Frugal

Keep your credit utilisation ratio at 30% for a good Credit Score. If you are struggling to stay within this limit, then get a card with a higher top limit.

Seek Variety

A combination of secured and unsecured debt will send your Credit Score upwards. A Credit Card is an unsecured debt whereas a Car Loan is a secured debt.

Advantage of Old Credit Card Accounts

Think twice before you close an old Credit Card account as long running accounts add more value to your Credit Score. And if you are not using your card, keep it safe to prevent misuse or fraud.

5 Credit Score myths that you should be aware of

Listed below are some of the most common myths about credit that you should know:

1. You will not receive credit if you do not already have it

   When you approach a lender for a loan, four elements of your credit report are analysed:

   • Account history
   • Identification
   • Inquiries
   • Public records, such as court records or bankruptcy filings

   If there is no established credit history for you, you just have to get someone to co-sign or authorise your loan. In case you do not have any one who can co-sign for you, you can explore the option of getting a secured credit card. This type of card requires you to put up cash as collateral. Once you start using the credit card, you will be able to establish a credit history. It is important that you make payments on time and use credit conservatively. Be patient, as it will certainly take time to build a credit history. Once your credit history is periodically evaluated, if you have a good standing, your credit score will increase.

2. Checking your credit report will negatively impact your score

   If an individual accesses his/her own credit report, it will not have a negative impact on the score. In fact, it is a healthy practice to check your credit report at least on an annual basis. Reviewing a report results in a “soft inquiry” that will only be reflected in a personal credit report. When a lender reviews the credit report, a “hard enquiry” will be added. These hard enquiries are shown to other lenders who review the report in the future, as these may represent new debts that are not yet visible on the credit report. Too many hard enquiries can have a negative effect on your credit score.

3. Once your credit score is bad, it is not possible to rebuild it

   A bad credit report can be rebuilt over time. The report shows all credit issued under the consumer’s name. It also shows all items that are closed or inactive. If you have missed payments or have made late payments, it can remain on your credit report for up to 7 years. In this time, you can rebuild your credit report by paying your dues on time, looking for better credit choices, and being judicious while spending. You have to remember that an old negative information in the report is less important than a recent positive one.

4. The government owns credit reporting agencies

   Credit bureaus are not owned by the government. However, the government has laid down many laws on how these should operate.

5. Paying in cash always helps to improve credit rating

   Using cash for all payments is certainly not better than using credit responsibly. This is because a consumer has to develop a credit history (displaying responsible credit usage) in order to establish a good credit score. If a consumer does not hold various types of credit accounts, his/her credit score will not be as good as another individual with a history of responsible credit usage.

FAQ's on Credit Score/Credit Report

1. Why is PAN card required for checking the credit score?

   The PAN card is required for obtaining the individual’s score accurately. The credit score can also be obtained by using other valid Proof of Identity (PoI) instead of the PAN card. The PoI helps in identifying individuals in the database.

2. Can credit score inquiries affect the score?

   No, the inquiry will not affect your credit score. When you apply for a loan or a credit card, it can have a slight impact on your credit score but when you are checking your credit score it is not.

3. Why do we need a phone number for credit score?

   The phone number helps in identifying individuals accurately. Your credit report will already have your phone number, when you provide your phone number, it is verified against your records to ensure you are the right recipient for your credit score.

4. Is there a limit to request for accessing credit score?

   There are no limits to the inquiry of credit score. You can check for your credit score as many times as you need to. The inquiry for the credit score is considered as a soft check while only hard checks can impact your credit score.

5. How the credit scores changes?

   The credit score depends on the credit report changes, as and when the changes are made to the credit report, the credit score would change depending on the positive or negative impacts. For example, when you are applying for a credit card or loan, making payments towards the credit, it will impact your credit report and the score.

6. What is the significance of credit score range?

   The credit score range can vary depending on the assessor, however, the value will represent the same level of creditworthiness. The credit score summary will also indicate the health status, it will tell you if a particular score is excellent, good, average, or poor.

7. What can be considered as a good credit score?

   Credit score may vary based on the credit rating company. The credit report and score will provide you with an indication of whether you have a good or bad score. A good score with a particular assessor will more likely to have a good score with another assessor.

8. What are the factors that are included in the calculation of credit score?

   There are few factors that are considered while calculating an individual’s credit score. Primarily, the account information that includes information of credit cards and loans, the public records containing information pertaining to tax lien and bankruptcy, and the hard inquiries made by your lenders will be accountable for the calculation of credit score.

9. Will the credit score be affected for owning multiple credit cards?

   This will depend on your credit history. If you have multiple credit cards with a higher limit and you are under-utilizing or over-utilizing it, this can impact your credit score negatively.

10. What type of information is included in my credit report?

    The following information will be included in your credit card report:

    • Individual’s name, address, and other personal details
    • PAN card and contact number
    • Credit history
    • Credit cards/loans
    • Payment patterns
    • Lender’s inquiry details, and more
11. What kind of information is not included in the credit report?

    A credit report won’t contain any information related to your checking or savings accounts. Also, the information pertaining to criminal records, medical history, lifestyle, and other details are not included in the credit report.

12. How long does the information remain on a credit report?

    This will depend on various factors such as the inclusion of hard inquires, payment details, credit card, and loan applications. As soon any changes are detected, your credit report would change. The information is obtained on a monthly basis for the changes to be implemented. If you find any error on your credit report, you are recommended to get it corrected from the assessor.

13. Is it possible to delete information from the credit report?

    Unless it is incorrect, no details can be deleted from your credit report. The credit report provides an insight of your credit history and lending worthiness. Most lenders vastly depend on the credit reports to assess the lending risks.

14. What do I need to do to if I find errors on my credit report?

    If you notice any error or wrong entries in your credit report, you can get in touch with the credit report provided to get it rectified. The process is simple, you can get in touch with your credit report provider through phone, email, and other mediums.

15. Is the Credit Information Report same as the CIBIL Score?

    No, the Credit Information Report contains details of credit history and inquires, CIBIL, like various other credit rating companies have their own method of calculating the score based on the information on the credit report. The Credit Information Report has all the details of an individual’s credit date while the CIBIL score indicates the credit worthiness. The CIBIL score is derived from the information available in the Credit Information Report.

16. Who can access my credit report?

    Your credit report can be accessed by you, lenders, and government recognized regulating bodies.

17. Why do lenders check the Credit Score?

    The lenders refer to the credit score to determine the credit worthiness of individuals. It helps the lenders or the banks to understand the risk factors involved in lending out money to an individual.

18. Can the CIC (Credit Information Companies) change or delete my credit information?

    No, the CIC collects information from various financial institutions but doesn’t change any data. The CIC compiles information related to credit transactions and payment histories of an individual.

19. What’s the credit score required for application of a credit card?

    A score of 700 and upwards has a higher chance of approval for credit card application. The banks might hesitate to give you a credit card if the score falls under 700.

20. How can I improve my Credit Score?

    There are many ways by which you can improve your credit score. Some of these ways are maintaining payment of loan EMIs and credit card bills. Along with this, limited borrowing and maintaining a credit utilisation ratio of less than 30% can also help your score.

21. What is the highest score you can get on Experian?

    Experian’s credit score ranges from 300 – 900. 900 being the highest score.

22. Can I have more than one Credit Report?

    Yes, credit reports contain your overall banking history and are used to assess your credibility, which is your credit score. A free copy of your credit report can be obtained once a year from each of the credit rating agencies that include CIBIL, Mark High, Experian, and Equifax. You can also request for obtaining all the credit reports at once.

23. How can I Build credit with no credit history?

    A sound credit history is useful to apply for a loan. It shows how effectively you have managed to repay the earlier obligations. If you have never used a credit card or never borrowed a mortgage, your credit history stands nil. Lenders may not issue a credit card or prolong a loan. Consider the following ways to build credit with no credit:

    • Obtain a secured credit card
    • Make payments in time
    • Use your credit card wisely
    • Restrict yourself applying for various bank loans
    • Track the progress of your credit score and credit reports periodically
24. Can I use my credit report to safeguard my identity?

    Yes, you can. Over 8 million adults are affected by identity theft every year. Review your credit reports once a month. Be safeguarded by obtaining an updated credit report to review for any doubtful fresh accounts. Observe the below cited general identity theft signals on your reports.

    • Unanticipated usage of old credit accounts
    • Wrong personal details
    • Unknown credit accounts and credit cards

TransUnion CIBIL is one of the leading credit information companies in India. The company maintains one of the largest collections of consumer credit information in the world. CIBIL Score plays a key role in the lives of consumers. Banks and other lenders check the CIBIL Score of the applicants before approving their loan or credit card application. Consumers can visit the official website of CIBIL to check their CIBIL Score and Report.

How do I find out what my credit score is?

Is there a credit score in Singapore?