CIBIL Score Check Using PAN Card: Everything You Need to Know
Your CIBIL score is the fundamental monetary measure depicting your credibility. It plays a significant role in the approval of loans, the granting of credit cards, and financial credibility. Having a good CIBIL score can help you avail of loans for less interest, while the lowest score can make you head toward the rejection of loans or high-interest costs.
Lenders use the CIBIL score to assess the risk involved in lending you money. It is a three-digit value from 300 to 900, where the bigger the value, the higher the creditworthiness. Having an overall score of 750 and above is typically good and increases your chances for approval for loans.
Understanding how cibil score check pan cards is essential for your financial health and building your credit history.
Understanding PAN Card and How It Is Involved In CIBIL Score Check
A Permanent Account Number (PAN) Card is a unique identification number issued by the Income Tax Department of India. This is mandatory for all financial transactions, including loans and checks for your credit score. Since your financial transactions will now bear your PAN, your lender will use this to access your CIBIL history and score.
Your PAN card is associated with all your transactions, including your payments from your credit cards, your repayment for loans, and your transactions for EMI. With the use of your PAN card, the bureaus can access your history accurately and generate your CIBIL score.
How to check your CIBIL score through your PAN card
Checking your CIBIL score using your PAN card is a simple and quick process.
- Visit the Website of CIBIL:
Go to the genuine CIBIL website or the known third party offering the credit score.
- Enter Personal Details:
Provide your PAN card number, name, date of birth, and your registered email address.
- Authenticate Your Identity:
Verify your credentials by using OTP sent through your registered mobile number.
- View Your Credit Report:
Once confirmed, you can access your CIBIL score and your credit report.
Some fintech platforms and banks also provide complimentary checks for the CIBIL score through the use of the PAN card. You can check your CIBIL score for free once yearly, but repeated checks will need you to subscribe.
Factors Affecting Your CIBIL Score
Understanding what impacts your CIBIL score is the best method for you to maintain a good credit history. These primary elements are:
- Payment History: Paying your EMIs and credit cards by the due date improves your score.
- Credit Utilization Ratio: Keep the use of the credit less than 30% of the total credit available.
- Number of Hard Inquiries: Multiple loan applications within a short period can negatively affect your score.
- Loan Defaults and Settlements: Miss payments and settlements against loans lower your score by far.
- Credit Mix and Length: A mix of secured (mortgages) and unsecured (credit cards) helps strengthen your profile.
- Length of Credit History: Having a longer history of good payments can improve your CIBIL score.
Common Errors Committed by CIBIL Reports And How To Address Them
Errors in your report can make your credit score inaccurate. To find and resolve them, follow the following steps:
- Incorrect Personal Details: Verify the details related to your PAN card.
- Unrecognized Credit Accounts: Dispute the presence of loans or credit cards not belonging to you.
- Missed or Delayed Payments Marked Inaccurately: In the event payments were made on schedule but were reported overdue, you can request correction through CIBIL.
- Duplicate Accounts: Having the same account reported multiple times can negatively affect your score.
To fix the said inaccuracies, you can visit the Dispute Resolution Portal by CIBIL, report your discrepancy, and follow the online progress. Correcting the said inaccuracies can improve your credit score and your overall financial situation.
How do you improve your CIBIL score?
Improving your CIBIL score takes some time and involves being financially disciplined.
- Pay your credit card dues and your loan EMIs on time.
- Keep your balance under 30%.
- Avoid multiple loans during a short period.
- Maintain a mix of secured and unsecured loans.
- Check your CIBIL report regularly and settle the discrepancies.
- Avoid settling loans for less than the outstanding balance for fear of harming your score.
- Increase your line of credit, but avoid overusing the increased line.
By following the given steps, you can gradually improve your CIBIL score, thus increasing your chances of getting approved for loans.
Myths & Facts About CIBIL Score and PAN Card
There are some misconceptions about the CIBIL score. Let’s debunk some myths:
Myth: Checking your CIBIL score regularly lowers your score.
Fact: Soft checks (self-inquires) will not affect your score; hard checks (lender checks) will.
Myth: If you have a low CIBIL score, you can’t ever get a loan.
Fact: Some lending institutions also lend to individuals with low scores. However, the interest will likely be higher.
Myth: Closing your old credit cards improves your CIBIL score.
Fact: Keeping your cards alive will maintain the best possible length for your history, keeping your score strong.
Endnote
Regularly doing cibil score check pan card helps you know your credit health. This allows you to make changes for the inaccuracies, make informed financial plans, and establish your creditworthiness over the long term.
For a hassle-free experience, you can access loans and financial products from platforms like StashFin through your CIBIL score. StashFin is also famous for instant approval, flexible repayment options, and instant disbursal, and thus is a very suitable option for the borrower. If you have a good credit history, you can access loans immediately with good interest rates and zero-hassle approval processes.
Take control of your financial future by monitoring your CIBIL score through your PAN card, building your credit health, and making sound financial decisions
