A good credit score goes a long way in instilling confidence among the lenders to disburse loans and issue credit cards. As lending products come with a degree of risk for the banks and other financial institutions, these lenders thus want to be absolutely sure of one’s creditworthiness before approving his/her credit application.
A lot of borrowers simply apply for loans or cards without even knowing their credit score. Sometimes, the applications go to the trash and much to their frustration.
The credit scores are prepared by credit bureaus such as CIBIL, Experian, Equifax, etc, based on the repayment behaviour of an individual. Of these, CIBIL score is viewed as more authentic by the lenders when they look to approve or disapprove an application. You can check your CIBIL score free online and that too via PAN Card. The article will tell you the ways to do CIBIL score check free online by PAN Number. So, stay tuned.
You can check CIBIL CIBIL via PAN by following the steps below.
Don’t know what a good score is? Well, let’s be told that the score of 750 and above would be considered good by the lenders. However, a loan or card can be approved even as your score is below the same. It’s because of the variation in the dynamics of different credits. Let’s check out the score sought in some of the credits below.
Whenever you get stuck in a situation requiring instant cash, you would ask for a personal loan. Even when there’s a time to fulfill the wishes of marriage and education, a personal loan is sought by the borrowers. As it’s given without any collateral, there’s a high degree of credit risk. And so, the score would be required in the range of 750 and past for a smooth approval and a better deal. Even if the score is below 750 but remains above 700, the application can be approved. However, the rate of interest and other terms may not be appealing to the eye.
A home loan is a secured debt as the property you buy gets mortgaged. So, if you default in the future, the concerned lender can take over the possession of the house and sell it in the market to recover the amount. So, even if the score is 650 and above, you would get an approval. For a better deal, though, the score has to be more than 700-750. Since the loan can span for about 20-30 years, a good interest rate deal can save a huge amount of bucks which would otherwise leave your bank balance.
Credit cards are also unsecured credits like personal loans. And so, a lender would seek a credit score of nothing less than 700 for approval. A score of more than 750, though, would help you grab the best of credit cards on offer.
Vikas Das, a noted financial writer, has laid down an easy way to check CIBIL score, a tool which banks and other financial institutions use to determine the creditworthiness of a borrower before approving an application.