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Did you know?
Checking your own credit score doesn’t impact it.
What is a credit score checker?
indiagold credit score checker allows you to calculate your credit score. A credit score defines your creditworthiness, quantifying your repayment ability on the money you raise. Your credit score (CIBIL score/ Experian score) helps banks understand your credit history and determine if you qualify for their loan or not.
What is a credit score?
A credit score is a number given to you based on your credit history, this number is decided on the basis of your ongoing or recently closed credit activity. Your credit activity can include repayments, applications for loans, existing loans, etc.
A credit score is very similar to a school percentage or a college GPA. If you perform well in your assignments in college, you get good credit points which improves your GPA, very similarly if you repay your loans on time you get points that improve your credit score.
A good GPA, lets you get good job opportunities, similarly, a good credit score gets you good opportunities to get credit from banks or NBFCs.
If you have a bad credit score, there are a number of things you can do to improve it, such as paying your bills on time, keeping your credit utilization ratio low, and building a long credit history.
What is a credit report?
A credit report is very similar to a report card you must have gotten in your school days.
A credit report is a report card of your recent credit history, it contains information on your latest loan repayments, the date of opening of your loan accounts, new applications for loan accounts, and bankruptcies or foreclosures.
Why do Banks/NBFCs need a credit score/credit report?
Imagine being an official in a bank who decides whether to give or not give a loan to a customer. 100s of customers come to you every day describing their need for a loan. It is important for you to make the right choice since you are giving out money that was entrusted to you by other customers of your bank.
You cannot make this call subjectively, neither is it efficient nor is viable to consider each and every customer and their very specific needs. To solve this problem, credit bureaus like TransUnion and Experian came up with the credit score which makes the whole process objective.
Credit Bureaus maintain the complete history of a customer’s credit activities, and use them to assign a score to the customer. Banks and NBFCs in turn, use this score to create credit policies that are used as an eligibility criterion for loans.
How is credit score calculated?
A credit score usually ranges from 300 to 900. If a customer has no credit history, their credit score is indicated as -1 also known as new to credit. Customers who have a credit score above 750 are usually considered as creditworthy however this number can vary from product to product.
Credit scores are calculated by bureaus, each bureau has proprietary calculation formulas through which the credit score is calculated but all of them use the following factors to determine your credit score:
- Payment history: This is the most important factor in your credit score. It shows how well you have paid your bills in the past.
- Credit utilization ratio: This is the amount of credit you are using compared to the amount of credit you have available. A lower credit utilization ratio is better for your credit score.
- Length of credit history: The longer your credit history, the better it is for your credit score.
- Credit mix: Having a variety of different types of credit accounts, such as credit cards, installment loans, and mortgages, can help to improve your credit score.
- New inquiries: Every time you apply for a new loan or credit card, a hard inquiry is placed on your credit report. Too many hard inquiries can lower your credit score.
How do Banks and NBFCs read my credit score?
| CIBIL Score | It's Meaning |
| 300-549 | This is the low CIBIL score, Banks and NBFCs will consider you as a highly risky customer |
| 550 – 649 | This is a fair CIBIL score, Banks and NBFCs will know that you are facing some difficulty in repaying your existing commitments |
| 650 – 749 | This is a good CIBIL score, Banks and NBFCs will most probably give you a loan but your interest rate might be higher than others |
| 750 – 900 | CIBIL score above 750 is considered excellent and shows that you have consistently paid your dues on time and have an impressive payment history. Banks and NBFCs will consider you a safe customer and will give you low interest rates on your loan |
Is a good credit/CIBIL score important?
It is very important to maintain a good credit score. A good credit score and history help one tell banks and NBFCs that they are creditworthy and can pay back the loan amount without defaulting or missing installment payments.Banks and NBFCs in turn reward customers with good credit scores with better deals and exclusive products like credit cards and zero-balance accounts.
How can one improve their CIBIL score?
- Pay your bills on time and in full. This is the most important factor in your CIBIL score. A good payment history shows that you are a reliable borrower and that you are likely to repay your debts on time.
- Keep your credit utilization ratio low. This is the amount of credit you are using compared to the amount of credit you have available. A lower credit utilization ratio is better for your CIBIL score.
- Build a long credit history. The longer your credit history, the better it is for your CIBIL score.
- Have a variety of different types of credit accounts. Having a variety of different types of credit accounts, such as credit cards, installment loans, and mortgages, can help to improve your CIBIL score.
- Dispute any inaccurate information on your credit report. You can check your credit report for free once a year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. If you find any inaccurate information on your credit report, you can dispute it with the credit bureaus.
- Avoid opening too many new credit accounts in a short period of time. Each time you apply for a new credit account, a hard inquiry is placed on your credit report. Too many hard inquiries can lower your CIBIL score.
- Pay down your debt. The less debt you have, the better it is for your CIBIL score.
- Become an authorized user on a credit card with a good payment history. This can help you to build a credit history if you don't have one already.
- Be patient. It takes time to improve your CIBIL score. Don't expect to see results overnight.
CIBIL Score Vs Experian Score
CIBIL score and Experian score are two of the most popular credit scores in India. Both scores are calculated using a variety of factors, including payment history, credit utilization ratio, length of credit history, credit mix, and new inquiries.
The main difference between CIBIL score and Experian score is the credit bureau that calculates them. CIBIL score is calculated by CIBIL (Credit Information Bureau India Limited), while Experian score is calculated by Experian India.
Another difference between CIBIL score and Experian score is the range of the scores. CIBIL score ranges from 300 to 900, while Experian score ranges from 300 to 850.
CIBIL scores usually range between 30-60 points lower than Experian Scores
| CIBIL Score | Experian Score |
| 300-549 | 300-499 |
| 550 – 649 | 500-599 |
| 650 – 749 | 600-699 |
| 750 – 900 | 700-850 |
How to check my CIBIL score online?
It is very easy to check CIBIL score online:
- Step 1: visit https://www.cibil.com/creditscore
- Step 2: click on ‘Get your credit score’ or ‘Check my CIBIL score.’
- Step 3: pick the desired subscription plan
- Step 4: fill in the details for identity proof
- Step 5: click on ‘proceed to payment’ and process the payment and get the CIBIL score and report in your email.
How to check my Experian score online?
It is very easy to check Experian score online:
- Step 1: visit https://consumer.experian.in/ECV-OLN/view/angular/#/
- Step 2: Click on ‘Register Now’
- Step 3: Enter your mobile number and verify it with the OTP sent to your mobile number
- Step 4: fill in the details for identity proof
- Step 5: Download your credit report or check it in your email.