A credit score is an important financial indicator that indicates a person’s creditworthiness. A credit score is calculated based on various factors, including payment history, credit utilization patterns and length of loan accounts tenure. The significance of a credit score cannot be overemphasized, as it directly influences individual future access to financial products such as loans and cards.
Banks and Financial institutions check CIBIL score online to decide whether or not to approve a loan application or credit card of a borrower. So, a borrower needs to know how to check our CIBIL score online to identify the areas for improvement and take the necessary steps to maintain it.
Important factors that affect your CIBIL score Calculation
A good CIBIL score reflects a borrower’s creditworthiness and enhances their chances of getting approved for loans or credit cards with favorable terms and interest rates. CIBIL score is determined based on the following factors:
Credit Utilization
Your credit utilization ratio is crucial in determining your credit score. It is calculated by dividing your total outstanding balance by your available credit limit. You can check CIBIL score online and keep your credit utilization ratio below 30%-40% of your available credit limit.
Credit History Length
Your credit history is the basis for calculating your credit score, and those with longer histories typically have more transactions to contribute to it. Check CIBIL score online and maintain good credit over an extended period to keep your score accurate.
Consistency of Payment
Timely payment of your Loan EMIs and credit card bills is essential for improving your credit score. On-time payments demonstrate that you are a responsible borrower who can be relied upon to repay debts, thus leading to a positive credit history.
Credit Inquiries
A factor that most people aren’t aware of when it comes to their credit score is that inquiring about this score can also impact your credit rating. You should know how to check CIBIL score online for accuracy.
How to check our credit score?
Bajaj Finserv Credit Pass is an innovative financial tool that offers a hassle-free way to check your credit score. It is an easy-to-use platform allowing you to understand how to check our credit score step-by-step. Checking your credit score on Bajaj Finserv Credit Pass is a simple process and can be done in a few simple steps. Here’s how to check our credit score on Bajaj Finserv Credit Pass:
- Visit the Bajaj Finserv website and navigate to the ‘Credit Pass’ section.
- Click on the ‘Get it Now’ button to apply for the Credit Pass.
- Enter your mobile number, and you will receive an OTP.
- Enter the OTP received on your mobile number and click ‘Verify.’
- Fill in your personal details such as name, email address, and city.
- Accept the terms and conditions and make the one-time payment of Rs. 99 to activate your Credit Pass.
- Once the payment is confirmed, you can view your credit score.
Bajaj Finserv Credit Pass offers personalized recommendations to improve your credit score and maintain good financial health. With Bajaj Finserv Credit Pass, you can check CIBIL score online, stay on top of your credit score, and take charge of your financial future.
Listed below are ways how to improve your credit score
Rectify Errors Promptly
To address any discrepancies in your credit report, visit the Bajaj Finserv website and check CIBIL score online. If you identify any transactions you disagree with or errors, dispute them immediately within 30 days to rectify them.
Monitor Your Credit Utilization Ratio
To maintain a positive impact on your CIBIL score, ensure you do not use your credit card for all transactions. Try to limit your credit utilization ratio to 30% or less.
Prioritize Loan Repayments
If you have been delaying loan payments, it is crucial to prioritize them and become prompt with payments. If you struggle to make the current EMI payments, consider approaching your bank to restructure the debt for easier repayment.
Timely Credit Card Payments
To maintain a good credit score, avoiding reaching the credit limit on your credit cards is advisable. Ensure you pay back the entire amount or a significant portion of your credit card balance instead of the minimum amount due.
Read also: Boost Your Credit Score In 9 Easy Steps
Conclusion
A good credit score is essential for financial security and independence. It plays a significant role in assessing an individual’s creditworthiness and ability to access credit, such as loans, cards or other financial products. A high credit score can enable individuals to secure better interest rates, increased credit limits and favorable terms on loans and other financial products. It is an efficient and convenient way to understand the basics of how to check our credit score and check CIBIL score online to stay informed about your creditworthiness.