How to Check Your CIBIL Score Using Your PAN Card: A Step-by-Step Guide - Digilocker | Digilocker Web

A good credit score is important nowadays in the financial arena for the individual who intends to apply for loans, credit cards, or any other financial products. To be more precise, your CIBIL score in India showcases your financial accountability and serves as the first base for lenders to consider before giving their nod to any application for a loan or credit. This can be easily done through your Permanent Account Number, in short, a PAN card, which is a government-issued identification number linking all your financial accounts. In this post, let’s explore the importance of knowing your CIBIL score and also give you an overview of how easily you can check your CIBIL score with a PAN card in some simple steps.

Table of Contents

What is a CIBIL Score, and Why is It Important?

A CIBIL score denotes the creditworthiness of a person concerning their financial history and is represented by a three-digit number, usually within the range of 300 to 900. It is given by CIBIL, which is a credit bureau that collates and evaluates an individual’s credit information. Other credit bureaus that provide credit scores are Equifax, Experian, and CRIF Highmark, but among them, the most popular and widely used is CIBIL.

The higher the CIBIL score, the better the creditworthiness, which means that you become less of a risk for the lender. This score, therefore, does affect the rate of loan approvals and interest rates on loans.

Importance of PAN Card in Credit Report Checks

Your PAN card is a government-issued, unique number that is connected directly to your bank accounts, loans, and tax payables. It’s your financial fingerprint and thus counts as the most important document to trace credit information in India. Credit bureaus make use of your PAN card to access your financial records with accuracy and connect your information to multiple accounts.

Also, when using your PAN card to get a check on the CIBIL score, note that this query does not impact your score. Unlike “hard inquiries,” which are made by lenders during a credit application and can lower your score, checking your score yourself is a “soft inquiry” and has no effect.

How to Check CIBIL Score Using Your PAN Card: A Step-by-Step Guide

Checking the CIBIL score with a PAN card is an easy process. Here’s a step-by-step approach:

Visit the CIBIL Website – First of all, visit the official CIBIL™ website or sites like Stashfin, which also offers a free CIBIL score check service.
Select ‘Free Credit Score’ Option -All you will need to do is click the option saying, “Free Credit Report” or “Get Your CIBIL Score” as most sites allow one free annual access.
Enter Your PAN and Basic Details: You would be asked to provide your basic information like PAN, the full name of the applicant, date of birth, email ID, and mobile number. For smooth verification, these should exactly match those provided on your PAN card.
Verify via OTP: An OTP will be sent to your registered mobile number for verification. Just enter it to proceed.
Access Your CIBIL Score: Once the registration and verification are complete, the next page opens with a CIBIL score and detailed report in terms of all information. The candidate may view it, print/download for future reference.

How StashFin Can Help You Manage Your Credit Score

A good credit score asks for constant management and a disciplined repayment habit. StashFin is one such financial platform that not only lets you track your credit score free of charge but also helps with timely reminders for due payments. The reminders will help you avoid missed or late payments, which form one of those biggest factors that influence your CIBIL score. You will be able to take charge and improve your credit score over a period of time with the help of StashFin.

Important Factors Affecting Your CIBIL Score

Here are some key factors that affect your score:

Payment History

Payment history comprises the highest percentage of your credit score calculation. Late payments, missed payments, or defaulted loans will lower your score. Past payment performance on loans, credit cards, and other credit accounts for which payments are due is what the lender will refer to when determining how reliable you are as a borrower.

Credit Utilization Ratio (CUR)

The Credit Utilization Ratio is the percentage of credit availed out of your total credit limit. Suppose you have a total credit limit of ₹1,00,000 across your credit cards, and your total balance amounts to ₹30,000; then your credit utilization is 30%, which is optimal. A high CUR indicates dependence on credit and can lower your score. Avoid exceeding utilization beyond 30% to have a better score.

Credit Mix

A proper mix of secured loans, such as for a house or auto, and unsecured credit, such as a personal loan or credit card, reflects well on your score. A diversified credit portfolio shows your ability to handle different kinds of credit responsibly.

Recent Credit Activity

This, in turn, has you committing to multiple hard inquiries when applying for a variety of credit products in a short period. Many hard inquiries in a short period can signal credit-hungry behaviour, thus causing financial distress to lenders. One should, therefore, not apply for several credit products within a short period so that you may keep a good score.

Importance of Regularly Checking the CIBIL Score

The regular check of the CIBIL score has several advantages:

Monitoring Your Financial Health: The CIBIL score essentially depicts your financial habits. The more frequent the checks, the better to know where you stand to make informed decisions about your finances.
Error Identification and Correction: There can be errors or, for that matter, outdated information on your credit report that reduces your score. Monitoring the report regularly will help identify such mistakes and get them corrected.
Loan or Credit Card Planning: A good score shall improve the chances of getting a loan or credit card on good terms. Monitoring the score means you know when the readings are high, which increases the chances of approval.
Prevent Fraud: Regular checks will also help you to detect some form of unusual activity or fraudulent accounts opened in your name.

Endnote

One of the best ways of keeping your financial health at bay is by regularly checking CIBIL score with a PAN card. A good CIBIL score opens all doors for lower interest rates, higher credit limits, and better approvals of loans, hence making it an indispensable part of financial planning. Moreover, platforms like StashFin can assist even further with features like regular payment reminders and free tracking of credit scores to help maintain and improve your score without any effort.