It’s regarded as a good practice to check your credit score or CIBIL score. You are free to check your credit score whenever you want and as often as you like. It is suggested that you verify your CIBIL score before to applying for a credit card. Before applying for a loan, check your credit score to have a better understanding of your credit history. Additionally, it will let you know if there are any issues with the loan approval. Additionally, you should verify your score a few months in advance so that you can make plans.
Another issue that you can encounter when you check your CIBIL score frequently is rectifying your errors. If there are any errors in the CIBIL report, they should be rectified immediately as they will reflect in your credit report and impact your credit score negatively.
What is soft inquiry?
A soft inquiry does not reflect on your credit history. When you check your credit score or when you receive a pre-approved credit card offer from a lender – these incidents are considered a soft inquiry.
Who is categorized under soft inquiry?
- When you check your own credit score
- When an employer or landlord checks your credit score
- When lenders check your credit before offering pre-approved credit cards
What is hard inquiry?
When you apply for any credit card or car loan or home loan, the lender requests your credit history before approving your loan or credit. The requesting of your credit report is considered a hard inquiry.
Soft inquiry vs hard inquiry
| Differences | Soft Inquiry | Hard Inquiry |
| impact on credit score | Doesn’t impact your credit score | Impacts your credit score |
| Reflect | Doesn’t reflect in the credit report | Reflects on your credit report |
| When is it done | For providing pre-approved offers | Before loan or credit |
| Consent | No consent is required | Written consent is required |
Reasons for lowering your CIBIL score
| Percentage | Factors |
| 30% | Payment History |
| 25% | Credit Exposure |
| 25% | Credit Type and duration |
| 20% | Other factors |
- Repayment Behavior
Your repayment behavior is one of the most influential factors affecting your CIBIL score. Timely repayment of all your credit or loan will help you maintain a good CIBIL score while any default or missed payment will negatively affect your CIBIL score. - Exceeding Credit limit
A credit limit is an upper limit on how much you can spend on your provided credit. It is important that you adhere to the credit limit. Any spending more than your credit limit negatively affects your CIBIL score. - Unpaid Dues
Always clear your unpaid dues as it will allow you to plan your finance better. Any overdue repayment will negatively impact your CIBIL score.
Along with the above-mentioned factors, there are a few other factors that can affect your CIBIL score negatively such as paying only the minimum amount due, making multiple credit applications, errors in your CIBIL report, and not having a credit mix and credit history.
Online CIBIL score check
You can easily check your CIBIL score at any time on CIBIL’s official website.
- Step 1. Visit CIBIL’s official website www.cibil.com
- Step 2. Enter the required information in “Get your CIBIL score” section.
- Step 3. Provide the supporting documents and confirm your details.
- Step 4. Once you receive your OTP on your registered mobile number, you can check your credit score at Myscore.cibil.com
| CIBIL Score | Creditworthiness | Loan Approval |
| 550 and below | Bad | Low |
| 550 and 649 | Poor | Difficult |
| 650 and 699 | Average | Possible |
| 700 and 749 | Good | High |
| 750 and 900 | Excellent | Very High |
Tips to improve your CIBIL score
Improving your CIBIL score is an ongoing process. You can’t improve your CIBIL score in a day or two. CIBIL score is improved over a period of time, the longer the credit history the better it is. Your long credit history helps the lenders understand your credit behavior over a period of time. It also helps in building a level of trust as compared to someone who has no credit history or has a negative CIBIL score.
how do you improve your CIBIL score?
Improving your CIBIL score is a straightforward process and borrowers complicate it with poor financial habits. You can improve your CIBIL by:
- Keeping a regular check on your credit score
- Paying your loan or credit on time
- Properly utilizing your credit
- Not taking multiple loans at one time
- Having good financial habits
Conclusion:
When can you check your CIBIL score?
You can check your CIBIL score at any given point in time. You should not hesitate to check your CIBIL score on regular basis. Frequent CIBIL score check allows you to better manage your repayment and credit. Also, it helps you to check and rectify if there is any fraudulent activity with regard to the CIBIL report.
