Credit score, also known as CIBIL score, is used to determine an individual’s creditworthiness and repayment potential. A better credit score increases the likelihood of their credit application being granted. Before asking for a loan, one must first verify their CIBIL score. It usually runs between 300 and 900. On the CIBIL website, one may check their CIBIL score using a PAN card. This blog will give users information about how to check their credit score with their PAN card.
How to Check Your CIBIL Score with your Pan Card?
If users want to check their credit score, they will need some basic information and their PAN Card number. To obtain the credit score, users must additionally pay a charge. CIBIL will give a free credit rating if users check their credit cards yearly. There is currently no alternative site that can offer us a more precise and up-to-date CIBIL Score than CIBIL itself. Once a year, customers may check their CIBIL credit rating for free. On the other hand, a membership to the CIBIL website permits users to check it many times during the year. To receive CIBIL Score through their official site, follow these steps:
- Step 1: Go to the CIBIL website and select "Get Your CIBIL Score."
- Step 2: To "Log in," select a subscription and complete all essential information.
- Step 3: Select 'Income Tax ID' as the ID kind and submit the Permanent Account Number to verify CIBIL score. After that, confirm identification and carefully answer all of the questions.
- Step 4: Complete payment to establish an account and avoid subscription if it will be used once.
- Step 5: A One-time Password will be sent to the given email address for authentication. Upon successful login, fill out the form that comes up next.
- Step 6: Fill out the form to find the CIBIL score.
If users do not even have the PAN Card number, they users may get the CIBIL Score using their basic personal information such as their name, birth date, identity verification number from another document, residence, and phone number.
Importance of PAN Card in Checking CIBIL Score
The significance of PAN in determining CIBIL score is as follows:
- PAN is a one-of-a-kind alphanumeric code which may serve as proof of identification for an Indian citizen. Checking CIBIL credit rating with PAN, therefore, improves security.
- It is connected to users' banking statements and tax payments, and PAN makes it easier for CIBIL to compile the credit score by using the financial details.
- It is also required to connect PAN card with Aadhaar card. Using PAN card to verify the CIBIL score aids in identifying individuals who have loans from several institutions.
Considerations When Using a PAN Card to Check Credit Score
Keep the following tips in mind when verifying CIBIL grade with PAN:
- A PAN card is required to obtain the CIBIL report.
- The CIBIL score can be checked for free if the PAN Card is used.
- Users will need a membership to check their credit score using their PAN card many times each year.
- If users lose their PAN card & apply for a duplicate, their credit score would not be impacted.
A PAN card serves as both an identification verification and a critical financial tool. Above everything, using a PAN card to verify the CIBIL score is now mandatory. Therefore, follow the above procedures to calculate the CIBIL score using PAN.
Effects of PAN Change on CIBIL Score
If the PAN card is stolen or destroyed and users demand a replacement, it will not affect their CIBIL/Credit score because the PAN number will stay the same. Nevertheless, if users have two different PAN cards, it is best to surrender one to prevent complications.
Obtaining a new PAN Card may also have an influence on a user's CIBIL score. This is because their credit score depends on their credit history linked to their current PAN card. If users register for a new PAN, the TransUnion CIBIL databases will likely raise a red signal on their account.
Factors Influencing CIBIL Score
The key criteria that determine users' CIBIL Score are as follows:
- Payment History: Making frequent late payments or failing to pay users EMIs can lower the CIBIL Score. Among the most crucial variables influencing their CIBIL Score is users' record of regular EMI & credit card late payments.
- Number of Hard Enquiries: If someone has recently registered for many credit cards and loans and those requests have been granted, lenders will examine the request with care. Since this practice implies a rise in debt load, which will negatively influence the CIBIL Score.
- Credit Use: Possessing a higher credit usage ratio or regularly maxing up their card indicates that people are too reliant on credit and have a high payback load. This may have a negative impact on the credit score. It is recommended that their credit usage not exceed 30% of their overall credit capacity. It demonstrates that the user is not hungry for credit, and the odds of becoming a defaulter as a borrower are small.
- Appropriate Credit Mix: Their credit score is more likely to improve if users have a balanced combination of secured & unsecured loans. It is recommended that users maintain track of their unsecured debts. It does, however, have a minor influence on their credit score. Users should not take out a secured loan simply because they have several unsecured debts but no secured loans.
A PAN Card is required to verify one's CIBIL score. Whenever users request a loan or a credit card, their CIBIL score is the crucial factor that every lender looks at. It demonstrates a borrower's creditworthiness and ability to repay the obligation on schedule. A high credit score boosts their chances of having their loan application accepted. Users may check their CIBIL score with their PAN card and receive monthly reports. Check out this page from TATA Capital to check credit score.