Almost all of the banks and lending institutions in the country would look at your Cibil score before granting a loan. If you have a low score, which is because you have defaulted in the past on loans, chances are that you would not get a loan.
The reasons for getting a low score could be plenty from defaults of loans, to delay to early closure of loans etc.
How to know your Cibil score?
Recently, while applying for a consumer durable loan, the executive was able to tell a customer the score, because he could check the information online and approve the application.
This cannot and should not always be the case, as this is not the actual procedure to be followed. You have to first apply for your Cibil Transunion Score online. Interestingly, you have to pay an amount of Rs 500 to get your score - it is not free.
The portal asks you for all your details including name, contact details like address and telephone numbers etc. You fill the same and proceed to make payment. You would than receive your credit score by email. This is rather quick and you do not have to wait too long.
Why do you need to check your Cibil score?
Let's assume that you are applying for a home loan. You may take a lot of effort to get ready the documentation and various procedure, however, if you fail to check the CIBIL Score, it would be rejected. What this means is that all the efforts would go in vain of gathering the documents.
It's therefore the best if you can apply and get your Cibil score online. We wish to reiterate that you cannot get a loan if your Cibil score is weak. Yes, you can do alternate arrangements as borrowing at a higher interest rate or borrowing from friends and relatives.
But, individuals and institutions could easily turn wary of lending, if it's a big ticket loan like a home loan.
As mentioned it is important to check your Cibil score before applying for a loan. The process is not too cumbersome and should take a few minutes. It is worth the while to avoid hassles at a later stage.