The Best Ways to Check Your Credit Score Online At No Cost

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Nowadays, people need access to different types of loans for various requirements. Having at least a couple of credit cards is also considered a standard norm to facilitate shopping and the purchase of goods that would otherwise be deferred.

 

In such a scenario, it is important to ensure you have a good credit score since the easy availability of personal, consumer and other loans as well as access to credit cards is contingent on this. Today, credit scores can be checked for free online. Therefore, checking your credit score regularly may be necessary to ensure it always remains within healthy levels that allow you access to loans and cards.

 

Understanding the Credit Score Concept

You may have already received numerous emails and messages prompting you to check your credit score free online. While some readers could be aware of what credit scores are all about, a few may not understand the concept properly. It’s essential to be aware of your credit score because the terms and conditions of the loans you avail of will depend on this.

 

A healthy credit score ensures loans are available at more benign terms with lower interest rates, which will help save some of your money. An unhealthy score would mean your loan or credit card application is rejected or approved on not-so-favourable terms.

 

Before knowing how to check your credit score online, let’s understand the concept first. The credit score of borrowers ranges between 300 and 900. In India, there are four credit information companies or credit bureaus, TransUnion CIBIL, Experian, Equifax and CRIF High Mark, whose credit scores are popular with both borrowers and lenders. Furthermore, fintech credit providers like Clix Capital also provide individuals with their free credit scores.

 

The credit score tells banks or lenders about your creditworthiness as a borrower. Credits scores that are at least 750 or above are deemed to be good. This score is based on your credit history, which is contingent on making timely repayments, the amount and number of times you have borrowed, the type of loans you have availed to date and other relevant factors. Timely repayments concern EMIs on loans as well as credit card bills, among others.

 

The specific score is assigned to people based on their data mentioned in a Credit Information Report (CIR). For instance, Experian’s CIR has detailed information of consumers’ credit/loan history, including identity information, loans, credit cards, credit accounts, payments and recent enquiries. Experian updates its CIR every month, based on the consumer credit information it receives from its member banks and other institutions once a month.

 

This data also considers the number of requests you have made for different loans or applied for credit cards. Lenders may seek such information, including your credit score, before approving any loan or card. Such requests from lenders are termed “hard inquiries”. A higher number of hard inquiries can lower your credit score and the chances of your loan or card application being approved since you will be seen as a “credit-hungry” borrower with a greater risk of default.

 

Additionally, the percentage of credit limit utilised on the credit card affects your credit score. Clix advises its customers to only utilise around 30% to 40% of their credit card spending limit each month to keep the credit score high. Clix customers are also cautioned against having multiple credit cards or outstanding unsecured loans as these can impact their credit score.

 

Modalities to Check Credit Scores Free

Finally, we come to the question of how to check your credit score online, free. One of the popular ways is to visit the Experian website or that of another credit bureau and check your free credit report. You will need to enter the necessary details, such as your full name, email address and mobile number. Once this is done, you will receive an OTP on your mobile to verify your number. Thereafter, you can access your free Experian credit score and credit report.

 

Typically, more than 80% of all new loans will be offered to customers with a credit score above 750. Considering the importance of an individual’s credit report in availing financial products, the RBI has mandated that India’s four major credit information bureaus provide individuals with one free credit report once a year, on request.

 

For this, after visiting the specific credit bureau website, individuals may need to provide their date of birth, address, PAN or Aadhaar number and other identity proof. After this, you may either be able to download your credit report instantly or the report will be mailed to you within 24 hours. After you receive your credit report, check it carefully to ascertain all details are correct. This is necessary to safeguard against any fraud or identity theft. Moreover, in case there are errors, you can rectify them by informing your bank or the credit agency.

 

It is possible that after receiving the annual free credit report, you may need to check your credit score once again later in the same year. If so, you can then subscribe to a paid access plan from any of these credit bureaus. Or you could visit the Clix Capital website for your free credit score.

 

Remember, regularly monitoring your credit score will help you take corrective steps in case of any issue. Obtaining a loan on favourable terms will then make your life much easier in the years ahead.

 

About Clix Capital

Clix Capital Services Pvt. Ltd. is one of India’s leading digital lending NBFCs disrupting the lending space and empowering customers with fast and simple loans for all their personal and business needs. It offers a full spectrum of financing solutions across 5 business segments: Corporate Finance, Equipment Finance & Leasing, SME Finance, Consumer Finance, and Housing Finance. Clix has an AUM of 5,000 Crs across 3M+ customers and has a presence in 15-plus cities throughout the country.

 

The Company is co-founded by Pramod Bhasin, Founder of Genpact and former CEO of GE Capital India and Asia, and Anil Chawla, former CEO of GE Capital India and Asia’s Commercial Finance Business. Along with AION Capital Partners Ltd, Pramod and Anil jointly acquired the commercial lending and leasing business of GE Capital India in September 2016 and rechristened it Clix Capital.

 

For more information, please visit www.clix.capital.

 

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