Credit reports and scores are essential tools used by lenders to assess the creditworthiness of borrowers. These reports help financial institutions make informed decisions about whether to extend credit or not, as well as the interest rates and other loan terms.
CIBIL report is a detailed record of a person’s credit history, including their borrowing and repayment history, outstanding debts, and any delinquencies or defaults. Credit scores are numerical values that summarize a borrower’s creditworthiness based on the information in their CIBIL report.
The importance of the CIBIL report cannot be overstated, as it is crucial in determining an individual’s ability to obtain loans, credit cards, and other financial products. Understanding how to check our CIBIL score and maintaining a good credit history is essential for anyone looking to access credit facilities and financial products at the best interest rates. Reviewing your CIBIL report regularly is crucial to ensure accuracy and identify potential errors that could harm your credit score.
Listed Below Are 5 Common Misconceptions About Credit Reports And Scores
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Reviewing Your Credit Report Can Harm Your Credit Score: Check CIBIL Score won’t harm your score. Still, if multiple lenders request information in a small period, it could potentially harm it as it will be considered a hard inquiry and leave an adverse impression on future lenders. Therefore, monitoring your CIBIL report regularly every 3 to 6 months is recommended, providing an honest insight into your financial status and enabling necessary improvements.
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Low Credit Score Remains On Your Record Indefinitely: A credit score reflects your financial history, but having a low score doesn’t mean you’re stuck with it forever. By understanding the basics of how to check our CIBIL score and consistently practicing good habits, and following expert tips, you can improve your credit history and, consequently, your score over time. Negative transactions typically remain on your CIBIL report for about three years, while bankruptcy and payment defaults can last up to 10 years.
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Your Annual Income Is A Determining Factor In Your Credit Score: Your annual income does not solely determine your credit score. Someone earning Rs.5 lakh might score 816, while another earning Rs.10 lakh could not have one. Instead, your CIBIL report and score rely on how well you manage each credit line. If an individual earns Rs.10 lakh annually but never uses credit cards or takes out loans, then no credit score would be created. However, earning that much and managing credit cards and loans well could result in a high credit score.
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Using A Debit Card To Build A Positive Credit History: Debit cards do not help build your credit history or generate a good CIBIL report, as they only allow access to funds already in your savings account and do not involve the concept of ‘credit’. To create a good CIBIL score, you must apply for a credit card or loan. This takes some time, but it could take several months before your score changes from ‘unavailable’ to something numerical.
Read Here More: The Significance of CIBIL Score in Personal Lending: A Comprehensive Overview By Bajaj Finserv
Your Credit Score May Be Negatively Impacted If You Apply For A New Credit
It’s important to understand that your credit score won’t be impacted if you apply for a new credit facility as long as you avoid applying to multiple lenders within a short timeframe. When you apply for credit at multiple institutions, each of them will inquire about your credit report. Too many inquiries can indicate that you urgently need financial assistance, which could lower your score.
Listed Below Are The Steps For How To Check Our Cibil Score
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Visit the official website of Bajaj Finserv, and search for “Check Score”.
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Once there, log in using your mobile number. An OTP will be sent to verify your mobile number. Enter an OTP to complete verification.
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To know how to check our CIBIL score, we need to provide all the necessary personal and financial information, such as name, date of birth, PAN card number, and contact details.
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Double-check that all entered data is accurate before submitting the form.
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Accept the terms and conditions and submit the form.
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Please wait for your CIBIL report and score to be generated, then view it online on the Bajaj Finserv dashboard.
Conclusion
CIBIL report plays an essential role in people’s financial lives. CIBIL report provides a detailed picture of individual credit history and behavior, which lenders use to assess whether extending credit is worthwhile. These ratings affect various decisions, such as interest rates on loans and cards and approval for various types of loans, such as personal, car, or home loans. Individuals should also monitor their reports regularly on a reliable platform such as Bajaj Finserv Credit Pass to detect any mistakes or fraudulent activity that could adversely affect their scores. Building and maintaining a good credit score requires dedication and hard work. By staying informed about how to check our CIBIL score and taking action to boost credit scores, individuals can take control of their financial future and reach their financial objectives.