Effects of PAN Card on CIBIL Score

Effects of PAN Card on CIBIL Score

Your CIBIL score influences the bank’s decision to a great extent. It plays a major role in your application for a credit card or a loan. The CIBIL score is an indication of how credible you are monetary. A credit report tells you the CIBIL score that comprises your credit history. It educates financial institutions and banks about your finances and if you are competent enough to get credit or not.

Financial institutions and banks check your CIBIL score when you apply for credit cards and loans. If you keep a low score, they most likely reject the application and charge you more interest. On the other hand, if you keep a good score, they accept the application very easily. So, now you know why a good credit score makes a big difference while you plan to apply for a loan. To know your CIBIL score, you can always try online means, which offer the easiest service. CIBIL score free online portals and websites can help you for this purpose.

You can assess and strengthen your credit ratings with a PAN card. Without a PAN card, the scores cannot be checked easily. Verifying your CIBIL score using your PAN card number can be beneficial because it is linked to your financial accounts and can aid in the proper retrieval of the score.

What Does a PAN Number Do?

PAN is a Permanent Account Number that is granted to Indian nationals. It is a unique alphanumeric number that assists in deterring tax evasion and also acts as identity proof. It is unique, so two Indian citizens can not possess an identical PAN. If you lose this card, you get a duplicate card that has the same number. Getting a new PAN gives CIBIL a warning message. It is a bad idea to change your PAN to improve your credit score. There are other ways to improve your credit score.

What are the Effects of Linking PAN and Aadhar on CIBIL?

Linking Aadhaar and PAN is compulsory. It has a positive effect on the CIBIL score. The E-filing portal helps you do this by logging in, or you can do this by SMS. Listed below are a few benefits of doing the same.

  • Linking Aadhaar and PAN can prohibit people from using your PAN number, which can derive a false credit report of an individual. It can show negative for individuals who have never given an application for a credit card or a loan.
  • If you want to log in to a credit bureau website, furnishing a PAN number is important to authenticate your individuality. This reduces duplication now that the PAN number and the Aadhaar number are linked.
  • In rural areas, Aadhaar enabled ATMs can be used for cash withdrawal. This helps them become credit eligible and apply for any loan.
  • The linking of PAN number and Aadhaar number helps track individuals who tend to use more than one PAN number and apply for credit at different banks. This enables banks to recognize fraud easily.
  • By using an Aadhaar card, you can access your CIBIL score easily. This is especially useful if you are planning to apply for a credit card or a loan.

What is the Importance of PAN and Aadhar on CIBIL?

When you are looking to apply for a credit card or a loan, a CIBIL score can play a crucial role. Along with the CIBIL score, the lenders and the banks check your Aadhaar and PAN number carefully to confirm your identity.

A PAN card comprises a unique 10 digit alphanumeric number. The Income Tax Department issues it. Whereas UIDAI issues the Aadhaar number. It is a 12 digit unique number. The Indian government has made it compulsory to link your Aadhaar number to the PAN card to file tax returns. Both of these are essential in building an individual’s unique identity in India.

How to Check the CIBIL Score with the help of a PAN Card?

The simplest way to assess the CIBIL score of an individual is by using a PAN card. A Pan Card is an official identity granted by the authorities of the Income Tax department of India. It is an essential document that is likewise a KYC certificate for many purposes.

You can check your credit score on the CIBIL website by going to their website and entering basic details. You will also need an ID number from the Income Tax department. Then by entering your PAN number, income details, and contact details, you can apply. They will send the report to the email in 24 hours.

What does CIBIL Score Mean?

A credit score for consumers is referred to as the CIBIL score. It is a three-digit number, and it reflects the consumer’s credit profile. This is established on the person’s credit behaviour in the past, like his repayment habits and his borrowing habits. It is conveyed by lenders and banks with CIBIL regularly.

The CIBIL score reflects the details established in the inquiries and accounts categories of the report. This includes credit cards and loan accounts, outstanding amounts, payment statuses, etc. The CIBIL score ranges from 300 to 900. The nearer your score is to 900, the better your chances are of getting a credit card or loan approval.

Is Credit Score Different from Credit Report?

Your credit score and credit report are two entirely different things. Credit reports are statements that have data about the credit activity of an individual and his existing credit situation, like the current status of the credit accounts and loan repayment history. The information in the credit report can be accessed in the ‘Know your CIBIL score’ option on the official website.

What are the Different CIBIL Score Ranges and Their Impacts?

CIBIL score ranges anywhere between 300 to 900. 900 indicates maximum creditworthiness. The red carpet is rolled out for you by financial institutions and banks if your score inches towards 900.

CIBIL score ranges from 700 to 900

You are in the prime creditworthiness bracket if your score is in this range. You will have an optimistic approach by lenders. This kind of score denotes that you repay your loans on time and use your credit carefully. You are not in debt, and you are among the financially responsible people.

CIBIL Score Ranges from 600 to 700

You don’t belong to the top tier. You may get loans, however, at higher rates of interest. You are looked at as the subprime borrowers. Your score indicates that payments have been defaulted or delayed a few times. A bank may not approve your loan application, and private financiers may charge you hefty interest.

CIBIL Score Ranges from 500 to 600

When you check your credit score online and find yourself in this range, you must focus on your finances. It may be difficult for you to get a loan from a bank; however, you must improve your score by making payments on time and avoiding activities with finances and lenders that can put up red flags.

CIBIL Score is Below 500

A CIBIL score as low as this can be terrifying. It affects your borrowings adversely. It may take time to improve your score; however, it is not impossible.

How can I Build a Healthy CIBIL Score?

Here is a list of things you can do to build a good CIBIL score:

  • Avoid late payments
  • Reviewing the report regularly by getting a Free CIBIL score
  • Maintaining the ratio for credit utilization
  • Managing a balanced credit mix
  • Avoiding frequent inquiries
  • Not exhausting accessible credit limit
  • Not closing old accounts
  • Monitoring the co-signed loans
  • Availing of at least a single credit product

These simple steps can help you build a credit score above 750. You can avail of credit at a lesser interest rate. This can bring about a gradual increase in the credit score.

What are the Benefits of a Good CIBIL Score?

A high CIBIL score is essential for credit card approval and loan approval. Listed below are the benefits of a high CIBIL credit score. Have a look.

  • Lower rate of interest on loans
  • Faster approval on credit cards and loans
  • Better negotiations with the lenders
  • Increased odds of higher thresholds on loans
  • Easy to get high limits on the credit card
  • Enhanced probabilities of getting pre-approved loans from financial institutions and banks
  • Increased prospects of getting long-tenured loans

What are the Common Mistakes that Lead to a Low Credit Score?

Mistake 1 – Making late payments.

Mistake 2 – Becoming a guarantor for someone.

Mistake 3 – Closing credit cards that are old

Mistake 4 – Not keeping a regular track of the credit report and credit score.

Mistake 5 – To max out on the total limit of the credit card.

Mistake 6 – Being frightened of taking credit

Mistake 7 – Getting more than needed credit cards

By avoiding these simple yet crucial mistakes, one can improve credit score gradually but definitely.

In recent years, the market of loans in India has noticed major changes. The number of customers and their bargaining and investing power has increased. CIBIL is responsible to a large extent for giving rise to this change. CIBIL has motivated people to maintain a good credit score, which has helped majorly bring financial literacy.

Now financial markets are more regulated. Borrowers get to check their CIBIL Score free online and familiarise themselves with their financial standing. This also gives them enough clues to the amount of money they are capable of borrowing. It encourages them to maintain the financial history that makes them more credible to get any kinds of loans.

A favourable credit profile enables you to make better bets to lenders and get access to substantial credit. Always remember that you must regularly monitor your credit profile to make sure that you always credit consciously. It also helps you the most when you have to be loan-ready. Just the way lenders deliver your CIBIL report, they also fetch the report from them. You, therefore, need to know your CIBIL score and report that indicates your credit history. It is referred to check your credibility. It is considered when you give an application to get credit in the form of a loan or a credit card. Making sure that you have a high CIBIL score is crucial.


Can we check the credit score with a PAN number?

Yes, you can check your CIBIL score using PAN card details from a credit bureau.

What is a good credit score?

The credit score ranges anything from 300 to 900. 300 is the worst, with 900 being the best score. A credit score above 750 is considered good. It has more scope for credit getting approved.

Why is it mandatory to have a PAN card for getting a CIBIL score?

A PAN card is compulsory to get through the CIBIL score free online check since the score matches the PAN number. It is used to file tax returns, and it is also used as proof of address.

How can I get the CIBIL report if I don't have a PAN card?

You can easily know your CIBIL score online by checking your credit score using your PAN card credentials. However, if you don’t have a PAN card, you can use the Aadhaar card number instead.

Will checking your CIBIL report repeatedly hamper your score?

No. When you check your CIBIL score, it is considered as checking it softly. It does not hurt the CIBIL score. However, when the lender checks it, it is considered as checking it hard, which will damage your credit health.

What is the new CIBIL scoring model?

CIBIL 2.0 is the new model being used by Transunion CIBIL to calculate an individual’s credit report. It gives a rating of 1 to 5. The higher it is, the lesser the defaulting risk of an individual is. It is designed so that it matches the new economic trend.

For how long does CIBIL hold the defaulter's records?

The details are with CIBIL for a maximum of 7 years. More than 7-year-old information is not included.

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