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Check Credit Score

Your credit score is extremely important. A higher score can help you get the most affordable loans in the market.

If you are an existing/new customer, please click on the buttons below to check your score.

Video | Credit Scores Matter for Loan Approvals

A Credit Score is calculated on your credit history: number of open accounts, total levels of debt, repayment history, and other factors. This is then used by financers to evaluate the probability an individual will be able to repay loans in a timely manner.

 

Want to know more? Watch this video.

What is a Credit score?

 A credit score is a 3-digit numerical value depicting your creditworthiness. It ranges between 300 and 850 and summarises your credit report, history, and rating. Your credit/ Credit Information Bureau (India) Limited (CIBIL) score is calculated by Experian Credit Information Company of India Private Limited and available as online credit score.

Your Credit Score score primarily depends on factors like-

  • New debt

  • Credit or repayment history

  • Credit mix

  • Credit utilisation ratio

 

When you apply for a loan, your credit score acts as a marker of your credit discipline. The CIBIL report helps the lender with your credit score information summarising your credit accounts, amount of credit used, the amount owed, number of hard credit enquiries, credit tenures, and whether bills and loan instalments are timely paid.

The higher your Credit score, the better your chances of loan approval. Typically, a credit score over 750 is considered excellent by lending institutions.

How to Improve Your Credit Score?

 If you don’t have a good credit score, you can bring your credit score up in a matter of months with disciplined credit and repayment behaviour. Check your online credit score and maintain a healthy credit score through-

  • Consistently pay your loan Equated Monthly Instalments (EMIs) and credit card bills on time. A credit report free of EMI defaults and late payments perks up your credit score.

  • Regularly check your online credit score and CIBIL report to check for any discrepancies and understand your potential loan eligibility.

  • Your online credit score should have a healthy mix of unsecured and secured credit. Here, the lesser unsecured loans you have active, the better your credit score.

  • Your credit utilisation on your credit card must be 30%-35% or lower than your current credit limit. However, not using your card at all can also lower your credit score.

  • Before applying for a new loan, check your credit history online. Credit score can reduce if you service multiple loans simultaneously and apply for new credit as well.

How to Check Credit Score Online?

 Perform free credit score check online with Tata Capital. Steps for credit score check are-

  • As a new customer, to get online credit score, input your first name and last name, date of birth, gender, email ID, PAN number, mobile number, address, state, city, and pin code.

  • As an existing customer, find your credit score; check your report online as well by providing your registered mobile number. Use the OTP to check your online credit score.

  • In the credit score check online process, confirm that all your details are correct. Click on ‘Submit’. Get your online credit score and credit report for free with Tata Capital.



What Adversely Affects Your Credit Score?

  • Delaying or defaulting credit card bill payments

If you repeatedly miss your credit card bill payments, your credit score will take a hit. Delinquency in repaying credit card debt reflects badly on your CIBIL report.

  • Higher number of unsecured loans

Your credit report shouldn’t depict that you are servicing higher number of unsecured loans. Not having a balance between unsecured and secured credit will drop your credit score.

  • Several loan applications

If you apply for multiple loans, your credit report presents you as credit hungry and someone carrying a substantial loan burden. It hurts your credit score.

  • Taking too many credit cards

Taking too many credit cards will increase your credit utilisation ratio (CUR) and negatively display on your credit report. Here, the CUR directly affects your credit score since it indicates the amount you currently owe against your overall credit limit. High CUR lowers your credit score.

  • Increased credit limit

A high credit limit means a higher debt burden, which negatively impacts your credit score. Not using your credit card

If you don’t use your credit card at all, your credit score falls. Consistently using credit cards under your credit limit and diligently paying bills is key to a positive credit score and CIBIL report.

What Are The Benefits Of A Good Credit Score?

 A good credit score improves loan eligibility, loan approval chances and increases your likelihood of landing competitive loan terms. Check your online credit score for free with Tata Capital.

Let’s look at some benefits of credit score above 750.

  • Higher chances of approval

A high credit score reflects your creditworthiness and clean credit history to potential lenders. This credit score means lenders trust your ability to repay the loan amount. High online credit score results in quick approval, faster loan processing, and a speedy fund disbursal.

  • Better interest rates

High credit score benefits also include being able to negotiate better terms. A high online credit score can help you qualify for attractive loan interest rates, reducing your overall repayment amount.

  • Higher loan amount

Since a good credit score indicates dependable credit behaviour, you can bag a bigger loan amount at competitive interest rates.

  • Pre-approved loan offer

If you have a sound financial background, high credit score, and a disciplined credit report free of loan defaults, lenders can also pitch your pre-approved loan offers. Besides, since the lending institution performs a credit score check online and pre-approves you a loan amount, your online credit score will land attractive interest rates and flexible loan tenures.

CIBIL/Credit Score Range

 The credit score range in India starts from 300 and ends at 900. The closer your credit score is to 900, the higher your chances of getting your loan approved at attractive interest rates.

The credit score range is further divided into credit score categories of NA/NH, 350-549, 550-649, 650-749, 750-900.

Check your online credit score for free with Tata Capital.

CIBIL Score Range

Meaning

NA/NH

The credit score signifies “not applicable” or “no history”. This online credit score means you either haven’t taken a loan or used a credit card and have no credit history.

350 – 549

If this is your online credit score, it is considered bad and you’re highly unlikely of getting a loan sanctioned. Your CIBIL report will have late payments of credit card bills and EMIs, or loan defaults. A poor credit score identifies you as a high-risk borrower who may turn into a defaulter.

550 – 649

This range of credit score is considered fair. The online credit score depicts that you are struggling to clear your dues and monthly instalments on time. Here, your credit score and credit report may qualify you for loans at steep interest rates.

650 – 749

Your credit score is considered decent. With good credit behaviour and disciplined repayment habits, take your credit score up. Lenders will check your online credit score and consider your loan application. However, at this credit score you may not receive the most favourable loan terms.

750 – 900

This is an excellent credit  score range. The online credit score indicates that you have regularly repaid your loans and cleared pending credit card dues on time. With your credit report, you’ll be considered a low-risk borrower. Lenders will perform credit score check online to offer more competitive interest rates and bigger loan amounts.

Who computes the Credit Score?

The credit score is calculated by the credit bureaus in India. There are four types of credit bureaus - CIBIL TransUnion, Experian, Equifax, and CRIF High Mark. Lenders - banks, financial institutions, and non-banking financial companies (NBFC) - rely on the three-digit scores computed by these institutions to analyse the borrower’s creditworthiness.

 

The bureaus consider multiple factors while computing an individual’s credit report, and each criterion has its level of impact on your score. Here are some important factors:

  • Type of credit you use
  • Credit age
  • Payment history
  • Credit utilisation

 

The credit score usually ranges from 300 to 900, with 900 being the highest score. Generally, 750 is an ideal score to become eligible for a loan. With a higher score, you can avail of a higher loan amount, lower interest rates, and better loan terms. 

Why should I check my Credit Score?

Check your credit report to know your credit score and determine your current credit position. Various credit agencies compute your credit score based on your borrowing and liability history. If there are any inaccuracies or errors, they will negatively impact your credit score. Hence, regular monitoring will help improve your credit profile. 

What hurts your credit score?

Knowing what hurts your credit score is important to improving your overall credit report. Missing payment dues and accumulating unpaid debt over time can negatively impact your score. But do you know what hurts your credit score apart from missing payment deadlines?

 

Here are some other factors that can poorly impact your credit score:

  • Filing for bankruptcy without understanding how it affects your score.
  • Creditors charge off an account when they feel the debt is unlikely to be collected. Having the status of your account charged off because of irregular payments can affect your score negatively.
  • Ignoring your loan and credit card bills over a significant period.
  • Not making timely repayments to third-party debt collectors will bring your profile in poor light and also affect your score.
  • Frequently late credit card repayments.
  • Closing a credit card with an outstanding bill amount is similar to exhausting your credit limit. The credit limit drops to zero, affecting your score poorly.
  • Limiting yourself to only one credit card for a long period lowers your credit score. Hence, it is advisable to always maintain different loans or credit card debts and repay them consistently.

 

Failing to check your credit reports from time to time to fix any errors or inaccuracies can hurt your score. This is important because credit bureaus can sometimes make mistakes constructing credit reports. Hence, checking your score regularly will give you a good idea of your credit profile.

Credit Score Calculation

The credit bureaus calculate an individual’s credit score after considering factors like credit history, repayment behaviour, credit exposure, and credit type, among other factors. There are four credit bureaus in the country: TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. These credit agencies are licensed by the Reserve Bank of India (RBI).

 

The calculation of credit score by each credit bureau is different according to its criteria and method used. However, the following factors are commonly considered by all credit agencies:

  • Repayment History - The repayment history amounts to 35% of your credit score. Missing due payments frequently will hurt your score.
  • Credit Utilisation - The sanctioned debt amount contributes 30% to your score. Spending more than your salary or exhausting a credit card’s monthly limit can negatively impact your credit score.
  • Credit type and repayment duration - The type of loan you apply for affects 10% of your score. By applying for secured and non-secured loans, you can maintain a credit balance. Likewise, repayment contributes 15% to your score.
  • Credit enquiries - Each time you apply for a loan, it reflects on your credit report. So taking multiple loans in short intervals can hurt your credit profile. Similarly, each rejection also reflects on your credit report. Hence, it is advised to apply for a loan only when you are sure of being able to repay it in a timely manner. 

What is the difference between credit score and credit report?

It is understood that when applying for a loan, lenders check your credit score and credit report. However, knowing what is the difference between credit score and credit report is essential.

 

Here’s a simple explanation if you are wondering - is credit score and credit report the same thing?

 

Credit score is a three-digit number provided by credit bureaus of the country. This qualifies you for loans, credit cards, mortgages, apartment rental, and more. A higher score will reflect a positive credit history. This will allow you to enjoy competitive interest rates and better bargaining power with a lender. Financial institutions use these scores to analyse the loans you qualify for, decide the interest rates, credit card limit, and more.

 

Credit report is a detailed statement of your credit history and your current financial situation, like your repayment history and the current status of your loan accounts. For instance, when you leave your credit account unattended or if repayments are not on schedule, it negatively impacts your credit reliability. Credit reports contain your personal information like - credit accounts, recent enquiries, loan rejections, account balance, payment history, and more.

 

Hence, the highlighting difference between credit score and credit report is that - a credit score defines your creditworthiness, whereas a credit report defines your credit reliability and spending behaviours. 

What are Credit Bureaus?

 A credit bureau is an agency creating credit scores by collecting and analysing credit data, including credit cards used, loans taken, overdraft facilities, etc., associated with people or business entities.

  • TransUnion CIBIL Limited

CIBIL is India’s first Credit Information Company (CIC). CIBIL bureau collates and maintains records of every individual’s repayment habits and credit behaviour for loans and credit cards. It then creates credit scores and Credit Information Reports (CIR). The CIBIL report and online CIBIL score help lenders make lending decisions.

  • Experian Credit Information Company of India Private Limited

Experian is a Dublin-based credit bureau using different methods to create a credit report. This credit score check online reveals an individual’s loan and credit history collated from India’s member banks and other financial establishments.

  • Equifax Credit Information Services Private Limited (ECIS)

One of the oldest credit bureaus in the US, Equifax offers credit scores and reports for individuals and businesses. It ties up with India’s financial institutions to create credit scores and credit reports.

  • CRIF High Mark

This credit bureau specialises in scoring, analytics, and credit management solutions. It makes credit reports with information from banks, NBFCs, Income Tax Department, etc. The online CIBIL score and CIBIL report from CRIF High Mark is available at a fee.  

FAQs

A credit score is a 3-digit numerical value depicting your creditworthiness. It ranges between 300 and 900 and summarises your credit report, history, and rating. Your credit score is calculated by the Experian Credit Information Company of India Private Limited and available as an online credit score.

  • Consistently pay your loan EMIs and credit card bills on time.
  • Regularly check your online credit score and CIBIL report to check for any discrepancies
  • Your online credit score should have a healthy mix of unsecured and secured credit.
  • Your credit utilisation on your credit card must be 30%-35% or lower than your current credit limit
  • As a new customer, to get online CIBIL score, input your first name and last name, date of birth, gender, email ID, PAN number, mobile number, address, state, city, and pin code.
  • As an existing customer, find your CIBIL score; check your report online as well by providing your registered mobile number. Use the OTP to check your online CIBIL score
  • Higher number of unsecured loans
  • Several loan applications
  • Taking too many credit cards
  • Increased credit limit

 

  • Higher chances of approval
  • Better interest rates
  • Higher loan amount
  • Pre-approved loan offer

Your credit score is calculated based on your credit history, repayment records, and other credit information in your credit report. 

So before approving a loan, lenders use your score to measure your creditworthiness as a borrower. Telecom companies use your report and score to verify your details and gauge your ability to pay post-paid bills timely.   

 

Your PAN is unique and is linked to all your financial transactions. Credit bureaus use your PAN as a unique identifier to locate your credit information in their records. This is why you need to provide your PAN to check credit score.

Enter your PAN and get your free credit score check online with Tata capital

Yes, some types of inquiries can affect your score.

When you apply for a credit card or a loan, lenders perform a credit check, which reflects in your credit report as a hard inquiry. Hard inquiries can decrease your credit score.

However, employer credit checks and self credit checks are soft inquiries and do not affect your score.

Tips for a good credit score:

  • Avoid having too many loans and active credit cards simultaneously.

  • Pay your credit card bills timely.

  • Keep your credit utilisation under 30% of your credit limit.

  • Be consistent and punctual with your EMI repayments.

  • Check your online credit score and report regularly, and notify credit bureaus about any mistakes. 

No, they are different.

CIBIL is one of the four major credit bureaus in India. Each credit bureau records your credit information and uses its own algorithm to calculate your score. The score generated by CIBIL is the most accurate and reliable. Hence, you may see the terms credit score and CIBIL score used interchangeably.

The credit score is set by the Reserve bank of India (RBI), ranging from 300 to 900, with 900 being the highest. There are various credit bureaus, Experian and CIBIL TransUnion being among them.

 

Experian and CIBIL TransUnion are well-known credit information companies approved by the Securities and Exchange Board (SEBI). They provide detailed credit reports that aid various lenders and borrowers in making informed decisions. A credit score of 750 and above is considered suitable for CIBIL and Experian.

 

Some points of distinction:

 

  • CIBIL caters primarily to domestic money lenders; hence, preferred by most financial institutions in India. International financial institutions like HSBC and Morgan Stanley favour Experian score. Being an Indian-based establishment, CIBIL scores are given more priority by Indian lenders.
  • CIBIL and Experian provide the status and detailed credit reports of a company and individual. However, since 90% of the companies and financial institutions are linked with CIBIL, you have a better chance of getting your loan approved with a positive CIBIL score.
  • Both use different algorithms to compute the credit score. For instance, CIBIL uses the algorithm Empirica, which collects data on payment history, credit type, credit utilisation, and credit exposures. In contrast, Experian uses the FIFO (First In, First Out) to calculate the credit score. 

In 2015, the Reserve Bank of India (RBI) issued guidelines that all financial institutions and credit-providing institutions must become members of any of the four credit bureaus, namely, TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. Hence, both Experian and CIBIL are reliable credit information companies.

 

About 90% of financial institutions and companies have tied up with CIBIL. This makes CIBIL score more reliable and accurate when applying for a secured and unsecured loan.

 

Both CIBIL and Experian credit scores range from 300 to 900. Credit scores above 700 are considered good, and scores above 750 make you eligible for most loan types.