Why does the bank reject your loan? See this free ‘report card’ on your money today

When we need a loan for a house, car or any other need, we go to the bank with great confidence. But many times our application gets rejected without giving any concrete reason. We are left wondering where exactly what went wrong? In most cases, the ‘villain of this rejection’ is a 3-digit number called the CIBIL Score or Credit Score.

This is your ‘money report card’, which tells banks how reliable you are in taking and repaying loans. The good news is that you can see this report card for yourself, and it’s free!

In simple language, what is CIBIL score?

CIBIL score is a number between 300 and 900. It is a mirror of your borrowing habits. Your CIBIL score tells all the information about all the loans you have taken till date (home loan, car loan, personal loan) or all the credit cards you have used, whether you have paid their EMIs and bills on time or not.

Simply put, it is a certificate of your financial integrity.

After all, why is this so important for you?

Consider this the key to the door of your dreams.

• Getting loan will be easy: If your score is good, banks will not hesitate in giving you a loan.
• Interest rate will be lower: Banks often offer loans at low interest rates to those with good scores, which saves you thousands and lakhs.
• Credit card easily available: A good credit score helps you get credit cards with better limits.

At the same time, if your score is bad, banks will not trust you and your loan may get rejected again and again.

What score is considered good?

• 750 to 900: supper star! This score means you are an ideal customer. Banks will salute you and give you loan easily.
• 650 to 749: It’s all right. You may get a loan but may not get the best deal.
• Below 650: Alarm bells! It is very difficult to get a loan with this score. You have to work on improving your score first.

Most important question: How to check for free?

As per Reserve Bank of India (RBI) regulations, every person can get his credit report from every credit bureau (like CIBIL, Experian, Equifax) once a year for free.

The method is very simple:

1. Visit the official website of CIBIL.
2. Find there an option like ‘Get Your Free CIBIL Score’.
3. You will have to fill a short form, which will include your name, date of birth, address, and most importantly your PAN Card Number will be asked.
4. After asking a few identification questions, your score and full credit report will appear on your screen.

It should become your habit to check it regularly, just like you check your bank balance. This not only lets you know your score, but you can also see if there are any fake loans going on in your name.

So don’t wait. Check this report card on your money today and take control of your financial future!