Your credit cannot be determined by your feelings. What you "feel like" doing should not interfere with what you must do and periodic credit checks is one of them. Monitoring your own credit report helps you stay out of trouble for good. Let us explain with a small example.

Two friends were studying in the same class. Their exams were approaching. While one of them regularly revised topics to be covered in the exam, the other just assumed that he would clear the exam easily. Who do you think would pass with flying colours?

Let us assume the other friend decided to study just before the exam. Still who do you think would be better prepared and fare well on the exam? The answer to this question is the strongest reason to review your credit report right now.

It is true that no one considers applying for a loan as a test of their credibility but in a way it is. If you have been checking your credit report then you would surely be better prepared for the outcome, have greater chances of being approved for the loan and enjoy lower rates.

For some people a rejected loan or credit card application is the thing that jolts them back to reality. Don't wait for such a shock come as an eye opener. Assuming all things are hunky dory does not help. Planning to check your report just before you apply for a loan may not be the most optimal approach.

Picture this. You are in dire straits and you need immediate rescuing. You apply for a personal loan but you hadn't thought about your CIBIL score up until now. Your application is rejected for a low cibil score. Now you don't even have time to mend your score and improve it.

Credit scores increase over time with steady efforts. Since you were not aware of a low score you never worked to enhance it. As you don't have time, you are driven to the brink. You are desperate for funding and you don't mind paying a higher rate of interest or approaching unorganised lenders.

Surely, you are at the losing end in either case; all because you didn't care for your score earlier.

Some compelling reasons to review your credit score regularly are listed below:

• Knowledge enables you to act appropriately. Your score paints an image of you as a borrower. You certainly want to make a good impression on the underwriters. Once you are aware of what the lenders would be looking at you can be prepared for the outcome.

If your score is below par then you can work to improve it before potential lenders look at it. This way you can eliminate a possibility of being rejected for the loan.

• There might not be enough time to work upon your score when an emergency strikes. Credit scores are built with patience over time. When you need funds quickly a poor score can dampen your plans. At such a time even if you want to improve your rating you can't expect it to increase overnight. It takes a great deal of effort and persistence to nurture your score into a strong pillar.
• Your report is the single most effective window to spot identity theft. You may or may not have been a victim of identity theft but you cannot ignore the possibility of being one in future. When you monitor your report at regular intervals, you avoid unnecessary hard inquiries. If you have inquiries or accounts that you do not recognise or you smell fish then by raising a CIBIL dispute you can bring it to the notice of the bank authorities.

This will help them nip the case in the bud, minimising the damage to you and the credit institution.

Maintaining a spotless, error free report is your primary responsibility. Just as you would maintain a clean house, you must aim to keep a clean report. Needless to mention, errors can impact your eligibility as you can tell which a wrong entry is but the lender cannot. The underwriter is bound to assume that the incorrect entry is the truth. You may have a hard time clearing things up later.

Most importantly, check your report because it is free. As mandated by RBI every credit bureau must provide an individual with a free credit report once every year. However, checking once in a year is not enough. You can return to your friendly website www.freescoreindia.com to check your report multiple times. By enrolling for our subscription services you can avail helpful analytical services and also save money at the same time.

Surely you would have found your reason to check your credit report today. Don't wait any further. Act now.

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