How important is it to track your CIBIL credit score?

A credit score shows the credit worthiness of an individual. In simple terms it tells lenders if they can issue a loan to a person or not and at what rate can the loan be issued.

November 05, 2013 3:26 IST | India Infoline News Service
It is also important for every person to know his or her own credit worthiness as we never know when we will need a loan. Following are steps to be taken to track your Credit Information Bureau of India (CIBIL) score:

There may be errors in your credit score: The first step in achieving your goal is to get your personalized credit score. When you get your personalized credit score first check if your name, address, telephone and PAN numbers are accurate. Then verify your bank accounts mentioned in the score and also the credit cards and loans being serviced in your name. Report to CIBIL immediately in case of discrepancy. You can log on to CIBIL Website to register a dispute for errors on your credit report https://www.cibil.com/online/file-consumer-dispute.do

You might pay more for new credit: Indian banks are slowly moving towards risk-based lending. In simple terms if your credit score is higher you will pay lower interest rates and vice versa. So it is important to keep track of your credit score to avoid discrepancies, which may pull down your score. Even if there is no discrepancy in your score and your score is low, there is a way to work towards increasing it.

Unnecessary enquiries: Your credit score is your right. You can get it any number of times you want. But no lender can get it without your permission. In fact if there are many enquiries against your score, it could hurt the score dearly. So it is important to track your score to avoid people placing unnecessary queries. Unauthorized queries for credit score could be a case of identity theft. It could mean that somebody may be using your credentials to get a loan. So be very careful.

Be prepared for future: In the developed economies, prospective employers, landlords, insurance companies and telcos too monitor individual’s credit score before they take on a customer. This may soon become a reality in India too. So be ready for the future by financially disciplining yourself.

Set a credit score goal:If you are not in the prestigious “800 plus score” club, don’t panic. You can work your way up the ladder to reach there.

So take the first step towards living a financially healthy life. Track your CIBIL score for the financial well-being.

The author is Co-Founder & Director, CreditVidya 

Disclaimer: Any content, views, opinions and/or responses on any of the pages of  www.indiainfoline.com, expressed or submitted by the creators, contributors, sponsors or  advertisers, other than the content provided by IIFL, are solely the views, opinions and responsibility of the person submitting them and do not necessarily reflect the opinions of IIFL.  IIFL does not warrant the accuracy, completeness or usefulness of the information. Nothing contained in or provided through this page is intended to constitute advice or solicitation for any investment/financial products or services, neither does it constitute an offer for the purchase or sale of any financial instrument or confirmation of any transaction. 


IIFL does not hold any responsibility for the consequences of any action or omission thereof based on any information related to investment/financial products or services that may be available on /through this page. Any reliance you place on such information is strictly at your own risk. We may include links to other web pages, but these links are not an endorsement of those pages, products or services. IIFL is not responsible for the content of any web site by other operators. Under no circumstances will IIFL be responsible or liable in any way for any content, including but not limited to, any errors or omissions in the content, or for any injury, death, loss or damage of any kind by any person as a result of any content communicated whether by IIFL or a third party. In no event shall IIFL be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits arising out of or in connection with the availability, use or performance of any information communicated on this page. 


Please read our other disclaimers and Privacy Policy.


Disclaimer | Disclaimer - Research  | Disclaimer - Discussion Boards | Disclaimer - Chat | Disclaimer - Twitter | Terms & Conditions  | Privacy Policy


FREE Benefits Worth 5,000



Open Demat Account

  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity