Why You Should Check Your Credit Score From Authorised Websites
Checking your credit score from authorized websites is crucial to ensure that you receive accurate and reliable information. By following these guidelines, you can protect your credit information and make informed decisions!
The credit score, commonly known as the CIBIL score, is a key component of the loan application process. Although it is not the final word for availing a loan, it is the first important detail that a good lender will look for in an application for a loan, especially for unsecured credit such as a personal loan or a business loan that does not involve any collateral.
A credit report is prepared by credit information bureaus in the country and comprises credit score, detailed credit information related to one’s current as well as past credit accounts, loans, payment history, and closed accounts.
The credit score has become synonymous with the CIBIL score, after the company that initially began generating the scores in India even though there are now a number of agencies that compile such scores. The credit score is a three-digit number ranging from 300 at the lower end to 900 at the upper end. It is derived by considering a person’s credit and repayment history, particularly over the previous 36 months.
Even if a person does not have a loan but uses one or more credit cards, their score is still determined by how they have used and repaid those cards in the past. Typically, lenders will readily approve loans with a score of 750 or higher since a higher score reflects a better repayment track record and lower possibility of a default. And a good CIBIL score is essential for any borrower to get the best possible deal for their loan with a reasonable interest rate.
Checking Credit Score
There are four credit bureaus in India: TransUnion CIBIL, Equifax, CRIF Highmark, and Experian. All of these provide credit scores on their websites along with a full credit information report.
The credit score is an important financial parameter that should be checked regularly. The score is dynamic. So one can, with some planning and behavioural change with respect to existing or new loans, improve the score to become eligible for the best deals for loans from lenders.
It is also important to periodically check the credit score to ensure that all details in the credit report are in order and there is no error in the personal details or any incorrect entry of financial activities that may impact the credit score. A sudden unexpected drop in the credit score is also an indicator of suspicious activities such as identity theft.
There are now a number of websites through which one can check their credit score. However, one must be very mindful of the platform through which the credit score is accessed and ensure that it is an authorised website. If it is an unauthorised source like a loan aggregator, there is a high possibility of the data getting compromised.
If the data is leaked, one can be troubled by unwanted spam calls for credit cards and loans. In some cases, this may also lead to a more serious breach of data which may also lead to financial fraud.
For accessing the credit score, one usually needs to fill in basic details including full name, telephone number and more sensitive information like the PAN card number. In these days of connected data, leakage of such details can lead to providing access to a fraudster with critical information and subsequently financial fraud.
Therefore, it is important only to check the credit score from reliable and reputed websites or apps. A credit score is not likely to get impacted if one checks it several times. However, it may be adversely impacted if multiple lenders check one’s credit score around the same time, especially when a person has applied for a loan.
Phishing is another common source of data theft or fraud. Therefore, one must never check the credit score from a link sent in the email. While it may look like a link from an authorised source, there is a possibility of falling into the trap of a phishing scam where sensitive data can be stolen.
When the credit score is low, one might occasionally receive emails or texts offering a loan despite having a poor credit score. These are most likely to be a catch for clicking on a suspicious link that may lead to a phishing scam.
Reputed lenders like IIFL Finance lay a lot of emphasis on the credit histories of their borrowers. While applications of people with lower CIBIL scores may be considered and approved, an ideal CIBIL score is 750 or above.
A good lender can also offer the most competitive interest rates to their clients as long as they have a clean credit history and have had no past record of late repayments or defaults on their loans.
As credit score is a key parameter for the approval of a loan on desirable terms, checking the credit score periodically is a good idea. However, it is important to use authorised websites of the credit bureaus and well-known lenders such as IIFL Finance, one of India’s top non-bank lenders that provides personal loans, business loans, gold loans and other services. IIFL Finance makes it easy for you to check the credit score. One just needs to fill a short form, and the credit score will be fetched from CIBIL instantly and for free.
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