Easy Steps to Check CIBIL Score by PAN Card

The TransUnion Credit Information Bureau (India) Limited (CIBIL) is one of the four credit information companies licensed by the Reserve Bank of India. The CIBIL score is a three-digit number ranging from 300 to 900 that summarizes your credit history, rating, and report.

Lenders consider the CIBIL score one of the primary factors in making credit decisions. A good CIBIL score helps build the right impression and improves your chances of being approved for loans or credit cards.

While there are many ways to check your CIBIL score, one is by a PAN card. The steps to check CIBIL score by PAN card are much easier. In this blog, we’ll walk you through a simple step-by-step process that will provide a clear picture of your credit rating and help determine your eligibility for a personal loan.

What is a good CIBIL score?

A good CIBIL score range is between 300 and 900. A score near 300 or below 700 indicates poor credit, making it challenging to secure a loan.

On the other hand, a score of 750 or higher indicates a good credit history, which makes individuals eligible for credit. Below is the CIBIL score range against its ratings to help you understand your credit stability.

What is the importance of a PAN card for a credit report?

The government assigns every taxpayer in India a Permanent Account Number (PAN) card. This crucial document is linked to an individual’s financial and banking accounts. The PAN system enables credit bureaus and financial institutions to assess and evaluate an individual’s financial stability for repayment when lending credit.

Also read: PAN 2.0 benefits for taxpayers

Steps to check CIBIL score by PAN card

To check your CIBIL score using your PAN card, follow the steps mentioned below:

1. Start by visiting the official CIBIL website.
2. Click on ‘Get Your Free CIBIL Score’.
3. Sign up by filling in the required fields, including your name, DOB, email ID, and gender.
4. Enter your PAN details as your identification type.
5. Complete the captcha verification code and tick the box to agree to the ‘Terms and Conditions’.
6. Finally, click on ‘Accept and Continue’ to proceed.

Tips on how to increase CIBIL score

With a few mindful actions, you can significantly increase your credit score. Here are the tips below:

1. Clear all your outstanding debt

   If you want to reap the advantages of a good CIBIL score, ensure you clear all your outstanding payments on time. This will make you a trustworthy borrower and help you gradually improve your score.

2. Make timely EMI payments

   Consider paying all your EMIs on time. Delaying payments affects your credit score and appears on your credit report. If you have an ‘auto-debit’ facility, ensure you have enough funds in your bank account to support your commitment to repay within the timeline.

3. Keep your credit utilisation low

   Relying solely on your credit card for expenses signals to lenders that you depend on credit too much rather than your primary source of income. This will make lenders hesitant to give credit. To be a responsible borrower, keep your credit use low. This can improve your CIBIL score and help you get credit more easily.

4. Report in case of discrepancies

   It’s possible that, even if you’re making your payments on time, the other party may fail to update CIBIL with your latest payment information. This negligence can negatively impact your credit score and hinder your efforts to improve it. To prevent such issues, regularly check your credit score and address any discrepancies promptly.

5. Credit mix

   Maintaining a balanced credit mix is essential for improving and maintaining a good credit score. Lenders look for a diverse credit portfolio as it shows your ability to handle different types of loans/borrowings. However, as mentioned above, timely repayments are also essential to avoid falling in scores.

Frequently Asked Questions

1. What is the best CIBIL score?

   While the CIBIL score range is between 300 and 900, the best range is 750 and above. A good score helps the borrower to secure credit services at competitive market interest rates.

2. Can you check your CIBIL score for free?

   You can check your CIBIL score free of cost once a year at TransUnion CIBIL’s official website. You can also use your PAN card to check your CIBIL score.

3. Is it possible to check the CIBIL score with PAN 2.0?

   PAN 2.0 is based on the original PAN and features updates such as a QR code. Thus, users can check their CIBIL scores from the official CIBIL website or another website licensed by the RBI.

4. Does a newly issued PAN card have a CIBIL score?

   A newly issued PAN card has no CIBIL score and is marked as ‘New to Credit’. When an individual applies for a loan, credit bureaus measure creditworthiness by verifying other parameters.

5. Does updating my PAN card impact my CIBIL score?

   Issuing a duplicate PAN card in case of misplacement will not affect your credit score. The reason is that your 10-digit number will be the same as your original card.

Your PAN card is more than just an identification card. It is a key document for analysing an individual’s financial and legal transactions. The 10-digit number can track and connect all your monetary activities, making it essential for maintaining a good CIBIL score.

It doesn’t matter if you’ve only borrowed once or are new to credit; reviewing it with your PAN number can make a big difference. It’s a simple habit that can help you in numerous ways when you need credit.