A CIBIL score is a three-digit number that tells the user about their payment habits. The CIBIL score is taken from the data found in the CIR. CIR has all the debt and credit payment data for the user. With an excellent CIBIL score, users can get loans quickly. It is necessary to have a valid PAN card. It will help users to check your CIBIL score. Every lender looks at the credit score when lending money to the borrower. It shows the ability of the payee to make payments on time. Payee’s chances of getting loans will be better with a good credit score. Users can quickly and easily check their CIBIL score with or without a PAN card.
Steps to Check Your CIBIL Score Using a PAN Card
Users must link their Pan Card to their bank account. It gives them many benefits. One such use is to check CIBIL scores. With Pan Card, the fitting has become effortless. A credit score of 750 is best for all taxpayers.
Given below are the credit score range and ratings.
Four main agencies issue credit ratings all over India :
- CRIF Highmark
To check your CIBIL score with a Pan Card, it’s free for one time. Users will have to pay fees if they want to recheck it.
The procedure is as follows:
The easiest way to check your CIBIL score is on its website. The CIBIL website will give its users recent updates. Steps to check your CIBIL score by Pan Card are:-
- To check your CIBIL score online for free, users must log on to the website.
- Click on the button “Check your CIBIL.”
- Choose one subscription plan.
- If the user checks only once, then there is no need to follow the third step.
- Create the user’s login details.
- Click on “INCOME TAX ID PAN”
- Enter the Pan Number
- Give all the correct information and answer all the points.
- Move ahead to pay the fees.
- If the user has not opted for payment, go to the next page to get an OTP.
- Users can now see their CIBIL score for free with their PAN card details.
Essential things to be noted while checking the CIBIL score
While following the steps given above, keep these things in mind:
- Checking CIBIL scores for free by PAN card can be done only once a year.
- A user can get a CIBIL score without a PAN card only once.
- Other than Pan Cards, the user can use voter cards, passports, and driver’s licenses.
- If the Cibil score is wrong, the user can file a complaint on-site.
- Complaints can be uploaded on-site or sent via post.
Benefits of linking PAN CARD to CIBIL
If a user links his PAN card details with his CIBIL, he can get many benefits. It saves users from having to deal with any duplicates. Many wrongdoings can be stopped by linking PAN to CIBIL. Linking their PAN can give exact financial data about users to credit agencies. Further, a PAN card is used when a loan is applied for or an income tax return is filed.
It has become mandatory to link PAN with your CIBIL. What’s more? Linking your Pan Card will let you check your CIBIL score for free.
Uses of having PAN card for checking CIBIL score
Most websites allow you to check your CIBIL score for free. These sites don’t ask for PAN cards. Banks keep track of a user’s credit history using their PAN card. Users cannot use many credit services if they don’t have a PAN card. This way, there will be no credit score. Any credit site will be unable to track the credit score.
Ways to keep a good CIBIL score :
The most important factor in tracing a user’s CIBIL score is his ability to pay on time.
Therefore, one should always make payments on time. The user should try not to exceed their credit limit. This will keep their score above 650. Or else they can also apply for a credit card with a higher limit.
One way to keep a better score requires a healthy mix of risky and non-risky loans. Credit card debt is risky, while car loan debt is not.
The value of a CIBIL score
A CIBIL score is valued since it benefits both the lender and the borrower in the ways listed below:
- The borrower’s CIBIL score aids in understanding his credit standing. A person with sound financial management always has a higher CIBIL
- Individuals with low credit scores face problems while applying for loans because banks check their CIBIL score before giving them a loan, and if it is low, they reject the application.
- However, if the CIBIL score is between 650 and 900, banks can consider giving them a loan at a very low-interest rate.
- Banks either reject a candidate’s loan application or allow it with higher interest rates if his CIBIL score is low.
- However, the applicant’s CIBIL score is not the only factor banks use to determine whether or not to offer them a loan.
- Several additional elements aid these organizations in deciding whether to approve the applicant’s loan application.
- But when banks give the interest rate, the applicant’s CIBIL score is quite important.
- A borrower with a higher CIBIL score might be eligible for a loan with a lower interest rate. If a borrower’s CIBIL score is low, they might be able to get a loan with a higher interest rate.
Nearly all banks and NBFCs in India rely on the CIBIL score. The Cibil score is used for loan approval and payment. A user’s CIBIL score has a direct impact on his finances. The need for a loan can arise at any time in life. The first thing the lender will check is the credit status of the applicant. The CIBIL score would be crucial at that point. The users must pay their debts and loans on time to get a better score. Visit the Piramal Finance website to learn more about CIBIL score, credit ratings, and a variety of financial products and services, such as personal loans, credit cards, and financial calculators.