How to generate CIBIL Score for the first time

Curious about how to kickstart your credit journey? Our guide covers everything that you need to know, from generating your CIBIL Report to utilising powerful tools like the Bajaj Finserv Credit Pass for a proactive credit management strategy.
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2 min read
11 Oct 2023

A crucial step in your financial planning is understanding how to generate your CIBIL Score for the first time. Your CIBIL Score is your three-digit credit score calculated by TransUnion CIBIL. This number occurs between 300 and 900 and is a summary of your credit history. It reflects your creditworthiness, and it determines your eligibility for credit products like loans and credit cards. Lenders refer to it to evaluate your application for credit and decide the terms on which you can access it, including the interest rate and tenure.

How can I generate my own CIBIL Report?

Generating your own CIBIL Report is both essential and straightforward. Most credit bureaus in India, including TransUnion CIBIL, allow you to download one free credit report annually. You can use this free access to check your CIBIL Score as well.

Visit the official website of TransUnion CIBIL and click on ‘Get Your CIBIL Score’. If this is your first time and you do not possess a CIBIL Login, then you will be directed to register and create your user ID and password. To do so, complete the registration form by providing the information requested and accepting the terms and conditions. An OTP or one-time password will be sent to the mobile number you have provided to authenticate your identity. Once this verification process is completed, you can sign in and download your CIBIL Report. It is important to note, however, that beyond the free annual credit report, you will need to opt for one of the subscription plans for subsequent downloads.

Bajaj Finserv Credit Pass for credit monitoring and management

If you are looking for an excellent tool to help you keep an eye on your credit health regularly, consider the Bajaj Finserv Credit Pass as your perfect companion. When you sign up now during the limited-time offer period, you gain free year-long access to these impressive benefits:

  • Personalised dashboard, for a total overview of all your credit accounts in one place, highlighting the factors that influence your credit score
  • Real-time insights into your Credit Health Report
  • Monthly updates to your CIBIL Score
  • Credit Score Simulator, for predicting the impact of a new credit product on your CIBIL Score, before you apply for it
  • EMI Calculator, to understand the monthly commitments involved when you opt for a new loan before you apply for it
  • Pre-approved offers, so you are never left in a lurch
  • Tips and tricks to improve your credit health

Tips to build your CIBIL Score

Building your creditworthiness takes time and patience, but it is more or less straightforward with prudent credit habits.

  • Start early: The sooner you begin building your credit history, the better. If you are just starting out, consider applying for a credit builder loan or a secured credit card. You can also look into becoming an authorised user on someone else’s credit card.
  • Regular payments: Paying your bills on time is one of the most crucial factors in determining your credit score. Late payments can adversely impact your score, so make sure to always pay your loan EMIs, credit card bills, and other financial obligations on or before the due date. Maintaining a clean history of repayment goes a long way in ensuring your score is healthy.
  • Low credit utilisation ratio: Your credit utilisation ratio is the amount of credit that you use compared to your total credit limit. Keeping this ratio below 30% shows that you are not over-reliant on credit and can manage your finances responsibly.
  • Healthy mix of credit: Diversify your credit portfolio by having a mix of secured and unsecured loans. Secured loans like home loans and auto loans, along with unsecured loans like personal loans and credit cards, can positively impact your credit score when managed well. However, this does not mean that you should apply for credit you do not need simply for the purpose of diversification. Remember, hard enquiries that occur when you apply for new credit temporarily bring down your score, and too many of them within a short span can make lenders nervous.
  • Monitor your joint applicant’s credit behaviour: If you are a joint holder or guarantor of a loan, remember that any defaults made by others will affect your credit score as well. Stay vigilant and ensure that joint applicants are responsible borrowers.
  • Check your credit report regularly: Reviewing your credit report regularly can help you spot errors and discrepancies that might be hurting your credit score. Immediately dispute them with CIBIL to get them rectified and safeguard your credit health.

Remember, financial discipline is the key to a high CIBIL Score. Start early, stay disciplined, and watch your creditworthiness grow.

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Frequently asked questions

How do I create a credit score?

You will have a credit score only if you have credit history. It is not possible to create a credit score because it is a reflection of your credit history and a summary of your creditworthiness. Only by being a responsible borrower, paying bills on time, having a low credit utilisation ratio, and diversifying your credit portfolio can you begin to establish your credit history. Your credit score will rise as you maintain good credit habits over time.

How can I generate my own CIBIL Report?

Creating your CIBIL Score is simple and necessary. Most credit bureaus, including TransUnion CIBIL, offer one free credit report per year. To do so, go to TransUnion CIBIL's official website, click on 'Get Your CIBIL Score,' and finish the registration procedure by giving the needed information and accepting the terms and conditions. To verify your identity, an OTP (one-time password) will be issued to the mobile number you supplied. After you have finished the verification process, you may sign in and obtain your CIBIL Report for free.

How much time does it take to generate CIBIL Score?

The exact timelines vary based on individual financial behaviours and other factors. Typically, it takes about 6 months to a year to build a CIBIL Score, if you have no credit history. If you have a credit history and are working on improving your score, it may take up to a year to see improvements with good credit behaviour. Lenders generally report to CIBIL within roughly 30 days after payment, and CIBIL takes another month to update the score.

What happens if I have no CIBIL Score?

Having no CIBIL Score usually means you do not have a credit history. Most traditional lenders might be hesitant to give you a loan or credit card due to the lack of data to assess your repayment behaviour. To start building a credit history, consider applying for a credit builder loan or a secured credit card. Regular repayments towards these will help you build a good CIBIL Score.

How can I build my CIBIL score?

Pay bills and EMIs on time, have a low credit utilisation ratio, have a good mix of credit, start establishing credit history early, routinely monitor your joint applicant's credit activity, and check your credit report meticulously to improve your CIBIL Score. Debt settlement, a diverse credit portfolio, and being an authorised user on someone else's credit account all contribute to your credit score. You can use the Bajaj Finserv Credit Pass to track your CIBIL Score and manage your credit health.

How can I build my CIBIL Score without a credit card?

There are many options that you can consider when you are looking to build your CIBIL Score without a credit card. You can opt for a secured credit card against a fixed deposit or a secured loan against assets. Prepaid credit cards are another option available to you. Timely bill payments, low credit utilisation, and paying off your debt can also help. Most important is maintaining disciplined financial behaviour and regularly reviewing your credit report for any errors.

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