5 Possible Reasons Why You Should Monitor Your Credit

19-May-2018 written by : FSI-Team

You Should Monitor Your Credit

We can see a lot of articles these days which are associated to good health and its benefits. Everyone around you is in a race to be fit and to be in top of the competition. Have you ever given a thought, what about your financial health and how to be on top of that as well? Now you must be wondering what of my financial health, it's absolutely fine! I have enough cash in hand, still properties and financially intact for anything future has to throw at me. Do I need to have to bother about it?

What many of us do not understand is the coin has a different side as well. Not many people know there is more than what meets the eye! For example, a credit report. A credit report plays a vital role whenever you are applying for a loan or a financial product. A good credit score can help you get a loan in no time and helps to boost your chances of speedy loan process. Have you ever given a thought what your credit score looks like? And is it really that important?

Today we will sight you 5 Possible Reasons Why You Should Monitor Your Credit,

1. You have never done this before

Do not worry; you are not the first person to that. Many of us have the perception, if I am making all my purchases on cash basis and do not have any bank loan on me, why should I bother checking the credit report, it's not like I am in a loan defaulter list or something. This thinking is wrong, even if you do not avail any loan or are not associated with any financial account, you will have a credit account in place and your financial transactions are recorded on the same. Getting a credit report is very easy these days and you can get yours within fraction of minutes through various online websites.

2. You may be a victim to identity theft

You should check your cibil report from time to time, just to see if your financial identity is not compromised. There are a lot of instances, where your details are used to avail any financial product and you pay the price by compromising your cibil score. While checking the same, if you find any identity theft, you can immediately contact the authorities and report about the same. You can also check how many hard and soft inquiries are made on your account and if the hard inquiries are authorized by you.

3. When you are planning to apply for a loan

Purchasing any product or service is not complicated any more. You can avail your dream product when you think of it, by availing a loan. A loan can bridge the gap between planning a reality when it comes to your needs. Same way, when you are applying for any loan, it is important to understand where you stand in credit rating and if you are loan worthy. If you know your credit score beforehand, you have the power to keep your terms to the lender when availing a loan. If not, you can always find measures to improve credit score for future financial transactions.

4. If you are a Co-signer for a loan borrowed by some other person

Did you ever casually sign your friend’s loan application as a guarantor or a reference? Well, in such cases you will have to pull your credit report from time to time, just to evaluate if your friend is making his/her payment in time. They not paying their loan EMIs on time can hamper your credit score for sure.

5. When you are building your credit score back

There are instances where you realize your cibil score is bad, what would you do? You start building your report once again. Just to make sure you are doing it right, you will have to check your credit score in regular intervals. This will give you a clear idea on how to amend your strategies to get your cibil score up.

This way you can forecast your financial future, which will lead to financial euphony.



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