The importance of a good credit score cannot be underestimated, particularly if you plan to apply for a loan or credit card in the future. However, many people are unaware that they can check their credit score for free using their Permanent Account Number (PAN). This guide will provide detailed steps on how to check your credit score for free using your PAN number and how to use your PAN card status to monitor your financial health.
Start by Understanding Your PAN Number
A PAN, or Permanent Account Number, is a ten-character alphanumeric identifier issued by the Indian Income Tax Department. Each PAN number is unique to an individual or entity and links all their financial transactions, serving as an identifier for the individual for the tax department. Your PAN number holds valuable information about your financial status, including your credit score.
Why is Your Credit Score Important?
Your credit score is a numerical representation of your creditworthiness, calculated based on your credit history. Lenders, such as banks and credit card companies, use your credit score to assess your ability to repay borrowed money. A high credit score typically signifies a lower risk for the lender, leading to better loan terms and lower interest rates.
How to Check Your Credit Score for Free Using Your PAN Number
Here is a step-by-step guide to checking your credit score for free using your PAN number:
1. Visit the websites of credit information companies such as CIBIL, Equifax, Experian and CRIF High Mark. Note that these are Reserve Bank of India (RBI) approved companies and provide reliable credit scores.
2. Credit Information Companies will have the option to access your credit score free on their website. Click it.
3. A form will be provided for you to fill up. This form may ask you to provide details such as your PAN number, email ID, mobile number, and some personal details.
4. Your PAN number is the most crucial piece of information, as it allows these companies to access your credit-related data.
5. Once the form is submitted, you may either receive your credit score instantly online or via an email from the company.
Remember that while accessing your credit score is usually charge-free once a year, repeated checks within a year may attract a fee.
Understanding the PAN Card Status
Your PAN card is a vital document that holds information about your financial activities. Often, the term “PAN card status” is used to refer to the stage of your new PAN card application, whether the application has been accepted, is under process, or has been dispatched by the respective authority.
However, your PAN card status can also indicate the status of your money lending and repayment activities. These activities impact your credit score majorly.
Keep Your PAN Card and Credit Score Healthy
Always strive to maintain a healthy credit score. Be prompt with your credit and loan repayments and avoid defaults of payment. Continually monitoring your PAN card status and accessing your credit score through your PAN number can help maintain your financial health.
In Conclusion
Your PAN number and PAN card status play vital roles in your financial life. The PAN number is not just for paying taxes; it’s a handy key to unlock information about your creditworthiness. Keeping tabs on your credit score ensures you have a firm grasp of your financial health, allowing you to take steps to improve it, if necessary. So, the next time you think about your credit score, remember: it’s just a PAN number away.
Remember that credit score doesn’t change overnight, and it’s essential to work consistently towards achieving a good credit score. Paying bills on time, not defaulting on loans, and keeping track of your PAN card status can go a long way in maintaining a healthy credit history.
As you get in the habit of regularly checking your credit score, you’ll develop an understanding of how your financial habits affect your long-term financial prospects. Furthermore, being aware of any changes to your credit score can help you detect any potential fraud in its early stages. Therefore, don’t ignore this crucial number, as it could be the difference in your ability to procure that coveted loan or even the house of your dreams.
For a seamless experience, download the Bajaj Finserv App to check your CIBIL score, access personalized offers, and manage your credit health on the go.
Read More: The Guide to Mastering the Art of CIBIL Score Checking
