17-Feb-2018 written by : FSI-Team
With technology taking shape day by day, everything we know is going digital. You can access information on anything from the palm of your hand. Even with such ease, many of us do not check our credit report, unless we are planning a loan or a credit card any sooner.
A good credit score can not only help you with a good loan with benefits but also can help you land on your dream job, get you a good car, etc. Not many people take credit report seriously and those who do live in financial harmony forever.
Some of us also have misconceptions that checking the credit report will affect their credit score, but that’s not the case. If you are checking your own credit report, it does not affect the credit score.
But why is it important to check the credit score regularly? What's in it for us? I checked my credit score a few years back, I do not need to check my score now is it?
These are the common questions which pops up when you are suggested to a cibil score check.
Today we will sight you the reasons why you should check your cibil score regularly,
A credit score is an important factor which contributes to your financial life. Ignoring your credit health is equivalent to ignoring your physical health. It's better to know where you stand in terms of credit score. If your cibil score is bad you can start working out on improving the score so that in emergency situations you can get a loan without hassles and on the other hand if your cibil score is good, you can take efforts to maintain it.
Checking your credit report from time to time can give you an insight if your credit information is accurate. If you find any errors while checking the report, you can always report it to the credit bureaus and rectify the error, before it makes a permanent damage.
Once you know where you stand and the information you see is accurate, you can work hard to increase or maintain your credit score. Building a good credit can take months or in some cases years. It will be suggested to monitor the report from time to time to keep it in good shape.
If you happen to apply for a credit without knowing your credit standing, you can be blindsided by the lenders in terms of interest rates and processing fees. Instead before applying for a line of credit check the credit information to get the best out of your application.
If you monitor your score regularly, you can evaluate your actions and act accordingly. For example, you pay a minimum amount this month on your credit card, how did that affect your score. is the practice good for you? Etc.
Checking your report regularly will help you respond to changes quickly. If you see a sudden dip on your credit score, you can immediately report such happening to the bureaus and the bureaus shall rectify it. This will help you in long runs, if you are planning to apply for a big line of credit later.
If you know, where you stand as credit worthiness, your life becomes easy while hunting for a financial product. A lender always prefers lending money to individuals who do not default their loans and have a great credit history. They will not only lend you money, but will also give you exciting offers as supplement while loan sanctions. A credit card company takes your cibil score while determining the type of card to offer and the credit limit to offer, if you know your cibil score beforehand you can negotiate on the credit limit and also reward points.
It is suggested to check your credit report every once in a year or before applying for a credit. Do not overdo this practice of sheer excitement, as a lot of credit inquiries can take your cibil score for a ride.