Wondering how to check your CIBIL Score on Paytm? We are here to assist you with that! Paytm provides a free & easy way to check CIBIL credit score instantly through the application. A good CIBIL score is essential for financial well-being as it determines eligibility for loans and credit cards. In this detailed talk, we will provide a step-by-step guide on checking your CIBIL score for free using Paytm.
In addition, we have a few tips that will analyze and improve your credit score! You can gain valuable insights into your creditworthiness right away. Let’s dive in!
What is the CIBIL score and credit Score?
A credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history, payment habits, total debts owed, types of credit used, new credit applications, and other factors. A good credit score demonstrates that you are reliable and financially responsible!
CIBIL score is India’s version of the credit score. It is calculated by TransUnion CIBIL, one of India’s credit information companies. The CIBIL score gives lenders an indication of your creditworthiness and the likelihood of repaying borrowed funds on time.
Maintaining a high CIBIL score is essential to avail of loans, credit cards, and mortgage financing on favourable terms with lower interest rates. A poor CIBIL score can negatively impact your ability to borrow funds or make purchases on credit.
How to Check CIBIL Score In Paytm for Free
CIBIL collects data from banks, financial institutions, and credit card companies to generate a credit report and CIBIL score for individuals. If you want to check your CIBIL score for free, then simply follow these easy steps:
Step 1: Download & Login To Paytm Application
The first step is to download the latest version of the Paytm app on your Android or iOS mobile device. Open the app and log in using your registered mobile number and password.
Step 2: Navigate To The ‘Free CIBIL Score’ Section
After logging in successfully, you will reach the Paytm home screen. Scroll down on the home screen and tap on the Loans & Credit Cards option. This will open a new section. Under this section, you need to click on the ‘Free Credit Score’ feature.
Step 3: Provide Personal Details
- On the credit score page, you need to enter your full name correctly and check the declaration box that accepts the Terms & Conditions for using the free credit report facility.
- Now tap the ‘Proceed’ button.
- The next step is to enter key personal details, including PAN number, date of birth, and email address. These details are required to authenticate your identity and fetch your credit information accurately.
Step 4: Accept Terms & Conditions
- Before you can view your credit score, you need to thoroughly read through the Terms and Conditions provided on the page.
- Only once you have gone through the T&Cs and agree to abide by them, check the declaration box stating that you accept these terms.
Step 5: View CIBIL Credit Score
Once you have entered all the correct personal details and accepted the Terms & Conditions, Paytm will instantly display your CIBIL credit score. This is generated based on your credit information and gives you an indication of your current credit health.
Step 6: Understanding Your CIBIL Report
The CIBIL report provides you with detailed insights into the factors impacting your credit score. Simply viewing the 3-digit credit score is not enough. You need to analyze your full CIBIL report to understand areas of improvement.
Credit Score Range And Analysis
Here we will be talking about what good and bad credit scores are and how they can affect you. So, let’s take a look:
A score between 800-900 is considered outstanding and indicates you have excellent credit repayment behaviour. Individuals with very good scores [740-799] have a strong credit profile as well.
A score in the 670-739 range is rated as good. This means you have a reasonably good credit history. An average score between 580-669 is considered fair. It indicates past credit mistakes requiring improvement.
A CIBIL score below 580 signals poor credit health. It represents high risk and makes getting credit more challenging at affordable rates.
How To Improve CIBIL Score
If you want to keep your CIBIL score outstanding or excellent, we have you covered. Here are some practical tips to improve your CIBIL score over time!
- Pay all credit card and loan EMIs on time – Set payment reminders to avoid missing due dates and make it a habit to always pay on time. Even a single missed payment can negatively impact your score.
- Keep credit utilization low – Using more than 30% of your total available credit limit can hurt your score. Keep individual card usage low and maintain overall utilization under 30%.
- Check credit reports regularly – Review your credit reports every few months to spot errors or discrepancies that could drag your score down. Dispute them immediately.
- Limit new credit applications – Avoid applying for multiple new credits in a short span despite pre-approved offers. Too many inquiries and new accounts look risky.
- Pay off debt – Carrying high balances on cards and loans negatively affects your score. Pay down debts gradually to reduce reliance on credit.
- Negotiate errors removal – You can negotiate with the credit bureau to remove minor discrepancies or errors that are severely impacting your score.
- Allow credit history to age – Time is your best friend in credit building. Keep old accounts open and let your credit history age.
- Diversify credit mix – Use different types of credit accounts wisely to demonstrate responsible usage behaviour across loan types.
- Monitor your score – Keep an eye on your CIBIL score every quarter. Measure the progress of your credit-building activities.
Following these tips diligently requires patience and discipline. But it is proven to improve credit scores over time.
Checking your CIBIL score regularly is vital for financial health and stability. Paytm offers an easy, quick, and free way to access your CIBIL credit score instantly. Not only does it save money, but it also provides the convenience of checking your score anytime on your mobile phone. Analyze your full credit report periodically beyond just the score.
This provides insights into where you need to improve through credit-building activities. A high CIBIL score signifies that you are financially reliable and eligible for affordable credit rates from lenders. Need more details? Keep in touch with us for more content like this!