Have you ever wondered why different people get charged different interest rates by the same bank or lending institute for a similar loan? Did you know that banks have their method of defining a person or business’s creditworthiness based on the person or business’s credit score? This credit score in India is calculated based on your credit report. A credit report is a document that contains information about your previous transactions. Banks use these credit reports to understand how well you manage your money and, from that information, decide how risky it is to lend you money. Credit scores in India range from 300 to 900. It is good to maintain a good credit score since it will help you immensely if you ever plan to raise debt or get a credit card. Let us look at how you can find what your current credit score in India is and how much it will cost you?
There are four credit bureaus in India. Namely, TransUnion CIBIL, Experian, Equifax, and CRIF Highmark. The RBI licenses all of these four bureaus, and the credit scores generated by them are all valid. You might get a different score from them since they have other methods of calculating. These four bureaus are mandated by law to provide at least one free credit report per annum. However, these free credit reports do not include your credit score, and to receive a credit report that is inclusive of your credit score in India, they will charge you a fee. You can also get a free credit report from multiple websites that have partnered with one or more of these institutions.
This blog will see how we can get our free credit report and credit score in India from CRIF Highmark. It is a simple three-step process and can be done online on their website.
Sign Up - Once we open their website, we will click on the ‘Your Credit Score’ link. On the page that loads, we will move on to the next link that says ‘Get yours now.’ If you visit the website for the first time, you will have to sign up with your email ID. Once you do that, you will be redirected to a form.
Fill in Relevant Information - In this form, you will first have to fill in your necessary details like name, date of birth, gender, etc. After that, you will have to enter your PAN Number and any identification number like passport number or driver license number. Then you will have to enter your Address Details.
Security Check and Pay - This will lead you to the part of the form where you will have to choose your credit report type. Now, you can choose to go for the free credit report option available; however, if you want to find out your credit score, then CRIF Highmark charges you Rs. 399. These fees would be different for the different bureaus, but the information they will ask and the process would be similar. If you want to know your credit score, you must pay and go ahead. Crif Highmark will now ask you three security questions relating to your previous transactions. These would be personal questions to authenticate your identity. Once you answer any one of these questions, it will go ahead and generate your credit report along with your credit score.
You can follow a similar process for the other bureaus if you want to receive your credit score from them.
The fees of these websites are Rs. 399 for Experian, Rs. 472 for Equifax and Rs. 550 for TransUnion CIBIL. It is good to check on one’s credit score in India once in a while and make sure that the information present on the credit report is accurate. If not, you must immediately get it rectified to avoid later issues. Building a good credit score is not commonly talked about the topic currently. However, the pace at which our financial systems are being digitized makes it better to stay up to date and make the best use of policies available to us. When it comes to the financial world, Ignorance is never bliss. It is always better to be aware and in control of your finances.
One such tool that can help you a lot with being much better aware of your finances is Chat with Nerd. It is one of its kind app that allows you to record and keeps track of your finances efficiently. All you need to do is send a text about your recent transaction, and it will automatically add it to the relevant category. You can also check reports on your spending habits and better manage your expenses. Visit www.chatwithnerd.com and sign up now!