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10 Things for Which You Should Check Your Credit Report Without a Miss

18-May-2019 written by : FSI-Team

10 Things for Which You Should Check

If you know anything about CIBIL score, then you know that it plays a huge role in your life. Whether you are a student or a working professional, if you have ever taken a loan in the past or used credit cards, then it's really important that you check your credit report on a regular basis. The following are the top 10 reasons that support this idea:

1. Loan Interest Rates

Do you need a car loan or a personal loan? If your answer is “yes”, then there is a good reason to check your report. This is because the interest rate that you will get on your loan will be greatly affected by your credit score which is given in the report. In other words, if your score is low, then you will have to a lot more to the bank compared to others. So, in that case, it’s a good idea to work on the score before you start sending loan applications.

2. Easy Approvals

Banks and NBFCs approve loans faster when the credit rating of an applicant is good and their credit report doesn’t have negative remarks from the previous lenders. So, that’s another reason to check your report before you apply for loans.

3. High Loan Limit

When a loan applicant has a poor credit rating, then a lender takes a big risk when approving the loan. In fact, as a safety measure, it approves only a small loan. What it means is that your loan amount is restricted when your credit score isn’t high enough. However, you can check your report to identify the areas that need improvement and then qualify for bigger loans with a better rating.

4. Discrepancies

One of the most common reasons why people have a poor CIBIL score is discrepancies in repayment history, personal details, etc. All of these details are given in the credit report. So, by checking your report, you can identify typos and mistakes if there are any, and you can update your bank so that they can have these removed. Doing this can give your score an instant boost.

5. Personal Finance

When you are managing multiple loans and credit cards, then it can be difficult to keep up with the payments. However, you can make it simpler by obtaining your report and enjoying the bird’s eye view of all the payments you have made in the past.

6. Identity Theft

Identity theft is a fraud/crime in which someone uses your documents to obtain a car loan, personal loan, etc. under your name. It’s a serious crime that can hurt your credit rating and create legal troubles. A good way to prevent it is to check your report from time to time and alert your bank if you notice any payment or loan account that you don’t recognize.

7. Peace of Mind

You never know when you may need a large amount of money. Common situations include medical emergencies, home renovation, etc. However, when a situation does emerge, then you want to be sure that you can get a loan easily. Checking your report frequently will give you peace of mind if your score is up to the mark.

8. Job Opportunities

Top companies, especially banks and NBFCs have started checking the credit reports of the job applicants. So, if you are interested in pursuing a career in the banking or finance sector, then it’s highly recommended that you check your report frequently lest your application should be rejected.

9. Joint Loans

If someone has taken a joint loan with you, then the way they are managing the debt will also affect your credit rating. For instance, if the person refuses to pay the EMIs at one point, then your rating can be hurt. Checking your report frequently can help you to prevent this from happening.

If someone has taken a joint loan with you, then the way they are managing the debt will also affect your credit rating. For instance, if the person refuses to pay the EMIs at one point, then your rating can be hurt. Checking your report frequently can help you to prevent this from happening.

10. Free

According to the norms set by the RBI, all the credit rating agencies like CIBIL, High Mark, Equifax, etc. have to provide one free credit report to every user at least once per year. So, why shouldn’t you check yours when you don’t even have to pay anything?

There you have it- 10 compelling reasons to check your credit report if you haven’t already. Always remember, doing this without fail and on a regular basis can make your life much easier and comfortable.


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