A customer’s credit report, rating, and history are added up to create a CIBIL score, which varies from 300 to 900. A credit score of 750 or greater is healthy, whereas one of less than that is concerning. A seamless loan application process is made possible by a high credit score. Customers gain from it, particularly where interest rates are concerned. Good credit score borrowers may qualify for loans with lower interest rates than other borrowers. Before releasing money, lenders consider several different things, but credit score is one of the most important ones.
You may be eligible for low-interest loans with strong credit, which could result in long-term savings of hundreds or even thousands of dollars. However, poor credit can make it difficult for you to get the loan you need to buy a home, get financing for a car, or be approved for the best credit cards with the best features and rates.
Being unfamiliar with the credit climate makes it challenging to know where to start. Learning everything there is to know about your credit score is the first step toward enhancing your credit health. You’ll be in a better position to maximise your credit potential and accomplish your financial goals if you understand your credit score and the actions you can take to improve it.
What Do You Need to Know About a Good Credit Score?
If they have a good or excellent credit score, most people will save hundreds of thousands of dollars over the course of their lives. For those with good credit, mortgages, car loans, and other types of financing are more inexpensive. More banks and nbfcs are competing for their business by offering higher rates, fees, and bonuses because customers with better credit scores are seen as lower-risk customers. On the other hand, customers with poor credit are riskier, which results in fewer lenders competing for their business and more businesses getting away with charging illegally high annual percentage rates (APRs). Additionally, having a low credit score makes it difficult to get life insurance, rent a house, or rent a car.
How to use your PAN card to check your CIBIL score
The below-mentioned process will help you to check your credit score by using pan card, you have to follow all the steps to know what is the status of your cibil score for availing a credit card or loan at a low-interest rate.
• The button in the top right corner of the screen can be clicked to see your CIBIL score.
• Decide on a subscription plan.
• Provide details like your birthdate, contact info, and email address.
• Come up with a login password you’ll use.
• When prompted for an ID type, enter your PAN and select “Income Tax ID (PAN)”.
• Continue to verify your identity and give truthful responses to all questions.
• Complete the “Make Payment” instructions.
• If this is a one-time need, stay away from subscriptions and go straight to your account.
• Log in to your account by providing an OTP or email address.
• Provide accurate information in the form that appears.
Effect of PAN Change on CIBIL Score
If you request a duplicate PAN card after your original PAN card is stolen or lost, your CIBIL/Credit score won’t be affected because the PAN number will stay the same. If you have more than one PAN card, it is recommended that you give up one of them to avoid any issues.
Additionally, obtaining a new PAN Card can result in a drop in CIBIL score. It’s because your credit score is based on your credit history, which is connected to your current PAN card. Therefore, if you ask for a new PAN, the TransUnion CIBIL database could probably show a red alert on your account.
• How Does Your CIBIL Score Affect New PAN Card Applications?
Your CIBIL Score is calculated using details on loans or credit cards linked to your current PAN card. You do not need to apply for a new PAN card if you already have one because doing so is against the law and the Income Tax administration may act against you.
• How would the PAN change affect my CIBIL Score?
Your CIBIL score is calculated using the credit products linked to your PAN card. If information from a different PAN card appears on your CIBIL report, your credit score can alter. It is essential that you have it repaired right away, though, as a lower credit score brought on by erroneous information in times of need may make it more difficult for you to get your loan application approved.
• What is a recently obtained PAN Card’s CIBIL Score?
You need a PAN Card to apply for a loan or credit card. When you obtain your PAN card for the first time and have not yet applied for a loan, the credit bureaus are unaware of your credit history. They label your profile as “New to Credit” as a result. However, even if you satisfy all other criteria, lenders could still opt not to issue you a loan or credit card.