How to Check Your Current CIBIL Score by PAN Card Number?

Why is PAN Card Crucial to Check Credit Score?

PAN Card is a government-approved identity and an official document that identifies each individual with a unique 10-digit alphanumeric PAN number. PAN is linked to your current bank accounts, loan EMIs and credit card, making it easier for the TransUnion CIBIL database to efficiently evaluate your finances. When you check your CIBIL score using your PAN card, access your credit score, or verify your credit report, it is only for assessing your credit report and authorising it with the linked details. Those who don’t have a PAN card can still generate their credit score using other official documents, such as a passport, a driving license, or a voter ID.

• PAN assists credit bureaus like CIBIL in tracking your financial information.
• Credit bureaus use this number only to fetch your credit information and to check for any discrepancies therein.
• You can check your credit score using PAN card free of cost only once a year. For checking it more than once a year, you will need to purchase a subscription.
• If you do not have PAN details with you and still want to check your credit report, you can do so by sharing details of your voter ID card, passport, or driver's licence on the credit bureau's official website.

Impact of PAN Change on the CIBIL Score

If you lose your PAN Card or it gets stolen, and you request a duplicate copy of the document, it will not affect your CIBIL score. However, if you hold two different PAN cards, you must surrender one to avoid any issues, discrepancies, or complications. Besides, applying for a new PAN card also affects the CIBIL score. Since it is linked with your credit history, the Income Tax department maps it before allotting one. 

How to Check if There are Any Loans on Your PAN Card?

A PAN card or Permanent Account Number is an important and confidential document you can use to check your CIBIL score online for free. However, it makes some sensitive information accessible online, which some scammers can misuse for their benefit. The most recent scam using PAN card details is loan applications not initiated by the PAN cardholder. You can check your credit report to see if a loan is active on your PAN card without your knowledge or permission. The credit report will contain all your credit cards and loans. So you can see all active credit lines on your report. 

India has four credit bureaus, each providing at least one free credit report annually. That means you can request four credit reports each year for free, one from each credit bureau. Keeping an eye on the credit report saves you from any fraud and keeps the report error-free. If you are concerned about whether checking your CIBIL score free online by PAN number will affect your score, take a breather, and know that a credit score check is a soft enquiry that does not involve your score.

You will most probably check your credit score while planning to apply for a loan. Doing that is a good strategy that prevents the credit score from hinging your eligibility. A low credit score indicates financial hiccups, making loan approval difficult. On the other hand, a decent credit score will quickly attract loan approval without hassle. Therefore, conduct a free CIBIL score check online using a PAN card and see where you stand. If it is lower than required, take steps to improve it and get in a better situation to qualify for a loan from Hero FinCorp at lower interest rates.   

Does Applying for a New PAN Card Lower Your Credit Score? 

There are many instances where it becomes mandatory for you to apply for a new PAN card. For example, if your card is stolen or broken, you must get a new card issued. Many people believe that applying for a new PAN card can affect their credit score, but this is not the case. You don’t need to worry about any discrepancies because the PAN on the new card will be the same as that on the old one.

What do Different Credit Scores Mean? 

• When you check your credit score by PAN card, you will find that your credit score is in the range of 300 to 900. But have you ever considered what these various ranges of credit scores signify and how they affect your loan approval chances? If not, take a look at the following pointers:
• The first one is NA/NH. You will see this text if you are new to credit and have never taken out a loan or credit card before.
• The next is a credit score between 300 and 549. It's a sign of poor creditworthiness. This score indicates that you have previously missed EMIs and/or defaulted on previous debts. It also shows a credit utilisation rate of over 30%. If your credit report displays a score in this range, your loan application is likely to be denied.
• fair credit score would be one in the range of 550-649. This range, however, indicates you made late EMI payments. Many lenders will refuse to lend to you if your credit score is in this range. In case you are approved for a loan, the lender will surely charge a high-interest rate.
• Next comes a credit score between 650 and 749. Such scores are considered good. A score in this range indicates that you are good at managing your EMIs and have a low chance of default. Even then, a credit score in this range may not be enough to get a low-interest loan.
• After the above range comes a credit score between 750 and 799. Scores in this range fall into the "very good" category. It demonstrates to lenders that you are a trustworthy borrower with a long credit history. It also creates the impression that financing for your profile is a low-risk proposition. Having a score in this range qualifies you for better loan terms. 
• The last is a credit score between 750 and 799. Such scores are considered excellent. Having this credit score will help you get a low-interest loan on favourable terms. 

What is a Credit Dispute?

A credit score represents your ability to timely repay a loan. However, there are various circumstances where a poor credit score may be due to errors or omissions in your credit report. For example, it is possible that a loan you closed in the past has yet to be reported to the credit bureau by your lender. In this scenario, the significance of raising a credit dispute becomes apparent.  

How to Resolve a Credit Dispute?

It is generally advisable you check your credit score by PAN card at least once a year. It will assist you in identifying any problems, such as an incorrect address, misspelt name, incorrect loan information, etc. It is critical to contact the credit bureau right away in such circumstances. Here's how you can resolve the errors or omissions on your report. 

• Make a note of any inaccuracies you find while reviewing your credit report.
• Look for the online dispute resolution form on the credit bureau's website. Mention all the details that need to be corrected.
• After submitting the form, you will receive a complaint reference number. Note the same for future use.
• Now, the credit bureau will cross-check the information with the lenders from whom you have ever borrowed funds.
• Once your lender confirms the error, the credit bureau will make the necessary revisions.

Conclusion

With rising inflation and higher living standards, bank loans in India are expected to grow to 11–12% in this financial year. To avail these loans, however, your credit score is an important parameter for lenders to gauge your creditworthiness. Regular monitoring of your credit report also allows you to keep track of your financial habits. Checking your credit score by PAN card is a quick and straightforward process that takes only a few minutes. Since you need PAN card to apply for personal loan, it becomes even more essential to use it to check your credit score and ensure everything is in order. You can use the process as described above to check the score and then figure out how you can improve it to be able to avail loans on better terms.

Frequently Asked Questions

1. Is there a fee for PAN card correction online?

Yes, PAN card correction online requires a processing fee, which varies based on the mode of delivery (physical or e-PAN) and location (India or abroad).