Your credit score is a three-digit number that shows how trustworthy you are with borrowing money. It's based on things like whether you pay your bills on time, how much of your available credit you use, the types of credit you have, and how long you've been borrowing money. Having a good score can help you get better deals on loans and other financial stuff, but if your score is low, it might be harder to borrow money. It's important to keep an eye on your score regularly to make sure your finances stay healthy.
To check your free CIBIL score using your PAN card, make sure you have your original PAN card handy. Your PAN card is a valid ID linked to your financial accounts and taxes. With it, you can access your CIBIL report without affecting your credit score. Here's how to do it easily and get monthly updates.
Steps to Check CIBIL Score using your PAN Card
Here are the steps to check your CIBIL score using your PAN card:
Step 1: Visit the Mybankingtips website.
Step 2: Find and click on the "Credit Score" section.
Step 3: Fill in your personal details as required.
Step 4: Fill in your Permanent Account Number (PAN)
Step 5: Verify your identity with an OTP (one-time password).
Step 6: Once verified, your free credit score will be available instantly for you to view.
Following these steps will help you get your free credit score through Mybankingtips, giving you valuable insights into your creditworthiness.
| CIBIL Score Range | Rating |
| 300 - 550 | Poor |
| 550 - 650 | Average |
| 650 - 750 | Good |
| 750 - 900 | Excellent |
Why do we need PAN Card details to check the CIBIL Score?
The PAN Card is like a special ID card with a unique number that helps identify people. It's linked to your bank accounts and makes it easy for companies to find your financial information. When you use your PAN Card number to check your CIBIL score, it's only used to find and confirm your credit details.
If you don't have a PAN Card, you can still get your CIBIL Score by using the ID number from other documents like your Passport, Voter ID, or Driver’s License.
Effect of PAN Card Change on your CIBIL score
If you need to replace a lost or stolen PAN card and request a duplicate, it won't impact your CIBIL score since your PAN number remains the same. Your past details will also stay unchanged. However, having two different PAN cards can lead to problems, so it's best to surrender one.
Getting a new PAN card can lower your CIBIL score because your credit history is linked to your current PAN card. Applying for a new PAN may raise a red flag in the TransUnion CIBIL database.
Factors that affect your CIBIL Score
Late Payments: Making payments on time is crucial for your credit score. If you don't pay your credit card bills or loan installments on time, it can seriously hurt your score. Even being just 30 days late can drop your score by 100 points. To avoid this, set up reminders for your payments, especially if you have multiple credit cards or loans. Missing payments suggests you're not good at managing your debts, which doesn't look good to lenders.
High Credit Usage: It's important to keep an eye on how much of your available credit you're using. This is called your credit utilization ratio. Experts say you shouldn't use more than 30% of your credit limit. For example, if your credit card limit is Rs.1 lakh, try not to spend more than Rs.30,000. Using more than half of your limit can hurt your score. Lenders get worried if you're using a lot of your available credit because it could mean you're struggling financially and might not be able to pay them back.
Outstanding Debt: It's important to clear any outstanding debts you have. Having unpaid dues on your credit report can lower your score. Even if the amount is small, it's best to pay off any outstanding dues to improve your score.
Paying Only the Minimum Amount Due: Paying only the minimum amount due can lead to problems. This amount is just a small portion of what you owe each month. If you keep paying only the minimum, you might end up in a debt cycle. This happens because the interest keeps adding up on your remaining balance. It's better to pay your credit card bills in full to avoid this and to show that you're responsible with your repayments.
Applying for Multiple Credits: When you apply for a loan or credit card, lenders check your credit report to see if you're reliable. This is called a hard inquiry. If you apply for several credits at once, you'll have multiple hard inquiries close together. These inquiries can lower your score and make you seem desperate for credit.
Closing Old Credit Cards: Credit cards help you build credit history. If you close an old account, you lose the history associated with it. If you've had a card for many years, it's better to keep it open if you can. It's okay to close newer cards instead.
Who Calculates your CIBIL score?
The TransUnion CIBIL credit bureau calculates CIBIL scores by considering various factors. These include payment history, the types of credit you have, how long you've had credit, and other relevant factors.
How To Improve Your Credit Score
Here are some tips to improve your credit score:
- Review your credit report: Get your credit report, including your CIBIL Score, from a reliable agency. Check for errors and dispute any inaccuracies.
- Pay bills on time: Consistently paying bills on time is crucial for a good credit score. Set up reminders or automate payments to avoid late payments.
- Manage outstanding debt: Work on reducing your existing debt. Making regular payments and keeping credit card balances low can positively impact your score.
- Increase your credit limit: Raising your credit limit can help lower your credit utilization ratio, improving your score. However, avoid using the extra credit to accumulate more debt.
- Keep old accounts open: The length of your credit history affects your score. Closing old accounts can shorten your credit history and potentially lower your score.
FAQs on Major Factors That Affect Your CIBIL Score
Q. Can I check my credit score if I do not have a PAN card?
Ans. Your PAN card is linked to your major financial transactions. If you don't have a PAN card, it's likely you haven't used credit much. In this scenario, credit bureaus may not be able to generate your credit score because they rely on data associated with your PAN card for credit assessment.
Q. Can I generate my credit score using Aadhaar card?
Ans. As of now, you can't obtain your credit score using only your Aadhaar number. You still need to provide your PAN card details to generate your credit score. Although linking your PAN card with Aadhaar is mandatory, the PAN card remains essential for credit score generation.
Q. Do debit accounts affect credit score?
Ans. No, debit card transactions, such as withdrawing money from a debit account, do not influence your credit score. This is because debit card transactions are not a form of credit, and they are not reported to credit bureaus. Therefore, they do not have any impact on your credit score.
Q. Why is my credit score going down when I pay on time?
Ans. Paying off debts can indeed impact certain aspects of your credit profile, such as your credit utilization ratio, credit mix, and the length of your credit history. However, whether your credit score drops after paying off debts depends on various factors.