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Should I check my CIBIL score before taking a loan?

CIBIL score is the basic parameter checked to start the loan underwriting process. Whenever you apply for any credit facility, your credit report is requested for detailed analysis by the lender.

A CIBIL Score above 750 is considered good, resulting in easy loan approval. However, this isn't the same with a lower credit score. Alongside your CIBIL score, other factors like the applicant's income, age, job stability, current assets, etc., are checked before final loan approval.

Skipping your credit report may cause rejection due to numerous issues in your credit report. So, checking your CIBIL score before applying for any loan is important. Checking your CIBIL report will give you detailed information about your current credit score alongside any discrepancies (if any).

Sometimes, you don't get the exact answer if you don't check your CIBIL report and get a loan rejection. Hence, checking your credit report helps you get detailed information on ongoing loans, missed payments, and other credit information.

Some lenders also give preferntial interest rates to people with higher credit scores. That's another good reason to check your CIBIL score before applying for a loan.