Check your free CIBIL score

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Your credit score is an almost true reflection of your creditworthiness. The higher your credit score, the better your chances of your personal loan getting approved.

Check your Credit score for free

The Credit Information Bureau (India) Limited, or CIBIL, is an agency that provides credit reports and scores about individuals. Three other companies work as credit information companies: Experian, Equifax, and Highmark. PayMe gives its users an Experian-generated CIBIL report for free.

A credit score is also called a “CIBIL score.“ Credit scores are known in India as the CIBIL TransUnion score. CIBIL Score is a 3-digit number that sums up your credit history, past repayment behavior, rating, and report. This score ranges from 300 to 900. The closer your score is to 900, the better your credit rating is.

CIBIL score range

The CIBIL score ranges from 300 to 900. A score above 750 is considered good, and a score above 800 is considered excellent. A score below 600 is considered poor. Below are the different ranges of a CIBIL score or credit score.

NA/NH: Your CIBIL score will be NA/NH if you have no credit history, which denotes that it is either “not relevant“ or “no history.“ You will not have a credit history if you have never used a credit card or applied for a loan. By using credit, you can access goods and establish a credit history.

300-549: A lender considers this CIBIL score range harmful. Individuals in this category have been late paying credit card bills or loan EMIs. In addition, it takes much effort to get a loan or a credit card with this low CIBIL score. Also, you can be declared a defaulter.

550-649: This CIBIL score range is considered a fair score. Few lenders will think you are worthy of an offer with this score, as this is still not the most suitable range. It suggests to the lender that you need help to pay the dues on time. It would help if you worked on your CIBIL score report to improve.

650-749: This CIBIL score range is suitable for the lender. You must pay your bills on time and maintain good credit. Lenders will evaluate your credit application and extend you a loan. However, you might need more negotiation power to get the most acceptable deal on the interest rate for a loan.

750-900: The lender considers this CIBIL score range excellent. It suggests that you have made regular and timely repayment of your past debts. As a result of your impressive payment history, you can negotiate with the lender for a favorable interest rate on the loan.

Factors that impact your CIBIL score positively

  • Timely repaying your loan EMIs or credit card bill on or before the due date.
  • Avoiding any late payments or unpaid debts and maintaining clean financial history.
  • Having a balance of both secured and unsecured credit.
  • Timely review your credit score and ensure no mistakes in your report.

Where can I get a credit score report?

If you wonder where to check my CIBIL score, PayMe is the best option for this requirement. You can get an Experian credit report for free with PayMe. Also, if you check your CIBIL here, the inquiry will not negatively reflect your CIBIL report.

Factors that Impact Your CIBIL or credit Score Negatively

  • Avoid making multiple credit queries simultaneously to various banks and other financial institutions.
  • Irregular repayment of due EMI of loan and credit card
  • A large amount of unsecured credit
  • Rejections for different loan applications
  • Having a high credit utilization ratio (more than 40% of the credit limit)

FAQ:

Why is your credit score important?

Your credit score is important because it is a numerical representation of your creditworthiness, and lenders use it to determine your eligibility for loans and credit cards and the interest rates you will be offered. A good credit score can help you qualify for better loan terms and save you money on interest over time, while a poor credit score can make it challenging to secure credit and result in higher interest rates. Maintaining a good credit score involves

  • paying your bills on time,
  • keeping your credit card balances low, and
  • limiting the number of credit applications you make.

How is your credit score calculated?

The credit bureau considers various factors when determining your credit score, which reflects your past credit behavior. Banks and NBFCs are provided with this information when you apply for credit products. Factors that significantly impact your credit score include:

  • Payment history includes your accomplishment of paying bills on time, including credit card balances, loans, and other debts. Late or missed payments can harm your score.
  • Credit utilization: This refers to the amount of credit you use compared to the available amount. High credit utilization can indicate that you overextend yourself financially and can lower your score.
  • Length of credit history: The longer your credit history, the more information it is for lenders to evaluate your creditworthiness. More extended credit history can help boost your score.
  • Credit mix: This refers to the different types of credit you have, such as credit cards, loans, and mortgages. Having a combination of different types of credit can be seen as positive by lenders and can help boost your score.
  • New credit: Applying for new credit too frequently can be a red flag and lower your score.

It is worth noting that different credit scoring models use different weightings for these factors and that many other credit-scoring models are in use, such as FICO and VantageScore.

It is also important to remember that your credit score is not a permanent record. It can change over time depending on how you handle your credit.

Benefits of maintaining a High Credit Score

Ans- Maintaining a high credit score is essential for many aspects of your financial life. A good credit score can open doors to better interest rates, loans, and credit card offers, while a poor credit score can make it challenging to qualify for these things. Here are some of the benefits of maintaining a high credit score:

Access to low-interest loans: A high credit score can help you qualify for lower interest rates on loans such as mortgages, car loans, and personal loans. This can save you thousands of dollars over the life of the loan.

Credit card offers: A high credit score can qualify you for credit card offers with lower interest rates and better rewards programs. This can help you save money on interest and earn rewards for your spending.

Rental applications: A high credit score can make renting an apartment or house easier. Landlords often use credit scores to evaluate potential tenants, and a high score can demonstrate that you are responsible with your finances.

Insurance rates: Many insurance companies use credit scores to determine insurance rates. A high credit score can help you qualify for lower rates on auto and home insurance.

Job applications: Some employers may check your credit score as part of the hiring process. A high credit score can demonstrate that you are responsible and reliable, making you a more attractive candidate.

Maintaining a high credit score takes time and effort, but the benefits are well worth it. By consistently paying your bills on time, keeping your credit card balances low, and monitoring your credit report, you can maintain a high credit score and enjoy all of the benefits that come with it.

Why is your credit score low?

There can be several reasons why a credit score may be low, including:

  • High debt levels: A high amount of outstanding debt can lower a credit score.
  • Late or missed payments: Late or missed payments on credit cards or loans can negatively affect a credit score.
  • Lack of credit history: An individual needs to establish a credit history to ensure their credit score is high.
  • Hard inquiries: If an individual has applied for multiple forms of credit quickly, it can lower their credit score.
  • Errors on credit reports: Sometimes, mistakes can occur on an individual's credit report, which can lower their credit score.

It's important to regularly check your credit report and address any issues affecting your credit score.

What to do if your credit score is low?

If your credit score is low, there are a few things you can do to improve it:

  • Pay your bills on time: Late payments can significantly impact your credit score. So make sure to pay all of your bills on time every month.
  • Reduce your debt: High levels of debt can lower your credit score. Try to pay off as much debt as possible and avoid new debt.
  • Keep your credit utilization low: Your credit utilization, or the amount of credit you use compared to your credit limit, can significantly impact your credit score. Try to keep your credit utilization below 30%.
  • Dispute errors on your credit report: Sometimes, mistakes can occur on your credit report that can lower your credit score. Review your credit report and dispute any errors with the credit bureau.
  • Be patient: Improving your credit score takes time, so be patient and consistent in following the steps above.

It's worth noting that some steps may take longer than others to improve your credit score, and some may require professional help (like debt consolidation or credit counselling) for more complicated cases. So remember that it is always best to consult a financial advisor or credit counsellor before making big decisions.

Is there a way to improve my credit score?

Yes, there are many simple steps you can take to improve your credit score. You can follow the guidelines outlined in the article “Increasing CIBIL or Credit Score,” or you can use PayMe's "Credit Assist" services to expedite the process of enhancing your creditworthiness. These services can provide you with personalized recommendations and expert guidance to help you achieve your credit goals.

Why take your credit score from paymeindia.in?

Taking your credit score from paymeindia.in can be a great way to stay on top of your financial health and make informed decisions about your credit. Here are a few reasons to consider getting your credit score from paymeindia.in:

  • Convenience: With paymeindia.in, you can quickly check your credit score online whenever you want. This means you do not have to wait for your annual credit report or pay for a separate service.
  • Accurate and up-to-date information: paymeindia.in uses data from major credit bureaus to provide you with a correct and up-to-date credit score. This information can help you understand your credit standing and make better credit decisions.
  • Customized advice: paymeindia.in provides personalized advice on improving your credit score and maintaining a good credit history.
  • Protecting your identity: By keeping track of your credit score, you'll be able to detect any suspicious activities and take action to prevent identity theft.
  • Low cost: Checking your credit score through paymeindia.in is typically free or low cost, which makes it an affordable way to stay on top of your credit.

Getting your credit score from PayMe is a great way to stay informed about your credit and make better financial decisions.