How to Check Your CIBIL Score byPAN Card Number

A credit score determines the creditworthiness of an individual or organization. The score is assigned by licensed organizations after factoring in the financial history of the individual. If there has been a lapse in repaying a loan or credit card bill on time, the credit score reduces. This score helps lenders like banks and NBFCs offer loans more prudently and at the right rate of interest to protect themselves from a possible case of default.A good credit score could help individuals secure a loan faster, for a higher amount and at better interest rates than those with a poor credit score.

A credit information company called TransUnion CIBIL Limited maintains records of many people across the nation. This company is one out of 4 official credit bureaus in India. The full form of CIBIL is Credit Information Bureau India Limited which is the oldest Indian credit rating agency. They partnered with an American company, TransUnion, and got their current official name TransUnion CIBIL Limited. The CIBIL score is a score assigned by them and ranges between 300 to 900; the higher being, the better. A score of above 650 is also typically considered good.The other Credit Information Companies were formed after 2005, when CICRA was introduced. CIRCA stands for Credit Information Companies Regulation Act. They have their own method of scoring, which may differ slightly from the CIBIL score. These three credit bureaus are:

1. CRIF High Mark Credit Information Services Private Limited
2. Equifax Credit Information Services Private Limited
3. Experian Credit Information Company of India Private Limited

There are a number of ways in which someone can check their credit score. For ease of access, one can check their CIBIL score through their PAN Card. Here’s how.

A PAN Card is typically linked to most bank accounts, financial transactions and the declaration of income as per the income tax act. Therefore, CIBIL and other credit rating agencies can easily collate data and give an accurate score. Using this PAN Card, a user can also access their CIBIL score. Anyone can follow these simple steps to check CIBIL through their PAN Card.

1. Open the official CIBIL website - https://www.cibil.com/ .
2. Click on “Get Free CIBIL Score & Report,” which is typically highlighted on the home page of the website.
3. Skip the next 2 steps if registration has already been done.
4. Enter the details asked, like name, mobile number, and email address and complete the registration.
5. Add a secure password which will be used to log in.
6. Log in using your credentials.
7. Next, select PAN Card as the ID type and enter the PAN Card details.
8. The site will ask verification questions for security purposes which must be entered correctly.
9. The CIBIL score and report will now appear on the screen.
10. Using the PAN Card, the CIBIL score can be checked for free only once a year. Anything more will be chargeable.

Also Read : Check CIBIL Score For Personal Loan

A CIBIL credit score can range from 300 to 900. A score between 300 to 500 is considered poor, and a score between 550 to 650 is considered average. A score between 650 to 750 is typically considered good, but the best is a score above 750.A number of factors could influence a credit score. Understanding them could help individuals make financially sound decisions that will increase their credit and help them get a good interest rate for any future loan that they may wish to take.Here are some of the factors that may affect a credit score:

1. Repayment History: Missing an EMI or a credit card payment or paying after the due date has the most significant impact on the credit score. It is considered a green signal every time someone pays their credit card bill or EMI on time and a red flag in credit scoring if they don’t. Banks also look for this as it is a clear indicator of the repaying capabilities of an individual.
2. Paying Credit Card Bills in full: Credit cards offer the option of paying only a minimum amount due and rolling the rest over to the next month. In some instances, this attracts a lot of interest as well. However, not paying credit card bills in full and consistently can bring down the credit score considerably because it puts a question mark on the repaying capabilities of an individual.
3. Outstanding Credit: Already having a loan or being in debt will reduce the repaying capacity of a person. Therefore, any outstanding dues or existing loans will reduce the credit score. This way, banks and financial institutions will know that though you have been paying existing dues on time, adding on another burden of repaying a loan might be difficult. Therefore, they should proceed with caution.
4. Past Relationship with Credit: Having no loans and credit cards will not lead to a better score. It gives the banks and financial institutions no basis to judge whether you will be able to repay dues on time and if you will be disciplined with timely payments. Therefore, having an existing healthy relationship with credit (credit cards, loans, etc.) will result in a better credit score.

Also Read: Income Tax on Credit Card - How to Save Yourself from an Income Tax Notice

Since all bank accounts are linked to a PAN Card, CIBIL would already have details of the current dues and outstanding loans. However, it is always wise to occasionally check and update the dashboard through which the CIBIL score is determined. This will also help individuals stay in touch with their credit history and know where to make improvements. Here are some best practices that can help increase the CIBIL score.

1. Don’t make hard inquiries for loans or credit cards unless you need them There are two types of inquiries when it comes to credit - a hard inquiry and a soft inquiry. These inquiries are either made by banks or financial institutions to check the credit report of a potential borrower or by borrowers themselves to check their own credit score. A soft inquiry means when borrowers check their credit score, employers perform a background verification or when financial products are assessing their audience for marketing and sales purposes.A hard inquiry requires the explicit approval of the person whose credit report is being generated. This is usually undertaken before disbursing a loan or in response to a new credit card application within 2 years. Too many hard inquiries are considered to be representative of a sudden need for money and an increase in debt which ends up reducing the credit score. The effects of a hard iniquity typically last 2 years on the check score. Borrowers can plan their debt in such a way that they space out the hard inquiries by avoiding additional debt within 2 years of existing ones.
2. Don’t spend more than 30% of your credit card limit If someone has multiple credit cards, they should split their usage so as to avoid crossing the 30% limit on any of the credit cards. Though a credit card limit may be very high and the user can take full advantage of it as long as they are repaying on time, it is financially wise to use only 30% of the total available credit limit so that it doesn’t negatively affect the credit score but keeps creating a healthy credit history as well.
3. Be extremely careful with due dates Missing due dates of EMIs and credit cards by even one day can have a negative impact on the credit score. Therefore, borrowers should set alarms or auto-debit facilities to ensure they don’t miss a payment. Further, credit card bills must be paid in full always and should never be carried over, even if comes with no additional cost.