How to check your credit score for free on PhonePe
PhonePe, India's leading digital payments platform, has a feature that lets users check their CIBIL score for free. The move is part of the company's effort to promote financial health among its users. The CIBIL score, or the credit score, is an important indicator of a person's creditworthiness and a key factor in getting loans or other financial services.
Understanding CIBIL score
The CIBIL score is a number that reflects a person's creditworthiness, between 300 and 900. The higher the score, the more reliable the borrower, who has made timely payments consistently and used credit responsibly. A lower score, on the other hand, may indicate missed payments or loan defaults. Banks and financial institutions use this information to determine a person's financial responsibility before approving loans.
Benefits of checking your CIBIL score
Regularly checking your CIBIL score can give you an idea of your financial health and help you spot any negative marks on your credit history. A good CIBIL score can also get you better loan terms, including lower interest rates. Now, with PhonePe's feature, you can easily access this information directly through the app - and that too, for free.
Steps to check your score on PhonePe
To check your CIBIL score on PhonePe, open the app and log into your account. Head over to the "Loan" section on the home screen and tap on "Credit Score." Tap on "Check Credit Score" and allow PhonePe to access your credit information. Your credit score along with a detailed credit history report will then appear on the screen.
Tips to improve your CIBIL score
To improve your CIBIL score, you should make timely credit payments, keep your credit utilization ratio in check, and avoid applying for too much credit. Keeping a healthy mix of secured and unsecured loans can also help you get a better score. Avoid closing old accounts prematurely as the age of your credit accounts plays a major role in determining your CIBIL score.
