In the world of finance, the importance of maintaining a sound credit score cannot be overstated. A good credit score is a passport to hassle-free financial transactions such as securing loans and credit cards. In India, the Credit Information Bureau India Limited (CIBIL) is the primary credit information company, playing a critical role in the financial system. Similarly, the Permanent Account Number (PAN) is another unique and essential identifier issued by the Indian Income Tax Department. This article delves into the direct connection between your PAN status and credit score, providing useful tips for maintaining a decent credit score.
PAN is an alphanumeric code that is unique for each cardholder. For individuals, it also serves as proof of identity. Your PAN status is a significant factor that should not be overlooked as it can significantly impact your CIBIL score.
Understanding PAN Status
Simply put, your PAN status reflects the current status of your Permanent Account Number. An individual can check their PAN status 24/7 using the online portal. Primarily, the status could be ‘Active’ or ‘Inactive.’ When you have multiple PAN cards or if there is any discrepancy found, your PAN status could be changed to ‘Inactive’ by the Income Tax Department. It can also indicate the progression of your PAN application.
Connection Between PAN and Your CIBIL Score
The PAN Card and CIBIL score are intrinsically linked in various ways. When you apply for a credit card or loan, the lender assesses your creditworthiness using your CIBIL score. They take your PAN details and check your credit history from the database.
If there are discrepancies in your PAN details or if your PAN status is inactive, this sends a negative signal to the lender. This could limit your chances of getting credit, or it could lead to you being offered a credit plan with higher interest rates. Therefore, it is of utmost importance to ensure that your PAN details are accurate and your PAN status is active to maintain a healthy CIBIL credit score.
Checking Your PAN Status Through CIBIL
Just like Aadhar card download, checking your PAN Status through CIBIL is a straightforward process.
- Visit the CIBIL website and create a CIBIL account if you don’t already have one.
- Enter your PAN number in the provided field to check your credit score and report.
- Your credit report will display your PAN status along with your credit score.
Please note that obtaining your credit score and report from the CIBIL website may cost you a small fee.
Impact of PAN Card Errors on Your Credit Score
Any discrepancy or error on your PAN card can hurt your credit score. If your PAN card reflects incorrect information or your PAN status is under the ‘Inactive’ category, it can lead to reducing your CIBIL score. Lenders may view you as a risky borrower due to the discrepancies found in your financial records.
Complementing Information With Aadhar Card
In India, AADHAR is another significant identification document. Like the process for Aadhar card download, you can check your PAN status online. Verifying information on both the documents and maintaining their proper functioning helps with a good CIBIL score. The Aadhar card download provides a unique identification number, authenticating your personal and biometric details. It also helps in seamless verification, complimenting the information provided by the PAN card and fortifying your creditworthiness.
Every step you take towards maintaining a sound credit score counts. Regularly checking your PAN status and ensuring your Aadhar card download details match your PAN details goes a long way in this exercise. Inconsistencies, even minute ones, can send off red flags to lenders and potentially result in lower credit scores.
In conclusion
Having a PAN card alone isn’t sufficient. The PAN status plays a pivotal role as it can impact your CIBIL score greatly. Regular monitoring and keeping your financial information updated is the key to maintain a healthy credit score and credit report. By doing so, you not only strengthen your financial standing, but you also ensure the smooth process of borrowing in the future.
