A lot of people tend to overlook checking their credit scores unless they’re applying for a credit card or a loan. In fact, some have never even checked theirs, while others might be hesitant because they’re scared of discovering something negative or think the score might change after they check it.
Your credit score and credit report offer a glimpse into your spending habits and are crucial for maintaining good financial health. Regularly checking them not only helps you understand your current standing in the financial market but also brings attention to other aspects you might not have considered. Especially during the ongoing pandemic, staying informed about your financial status and its implications is more important than ever.
Understanding Your Financial Position
Your credit report and CIBIL score are vital for your financial well-being, just like keeping up with your physical and mental health. Knowing your credit standing helps you understand your creditworthiness and what you can achieve. When you apply for a credit card or a loan, financial institutions look at this information first.
Spotting Errors and Preventing Identity Theft
When you apply for a credit product, your details go to a credit bureau, and any errors can negatively affect your credit report. Mistakes, such as a misspelled name or an incorrect payment record, can occur. Staying on top of your CIBIL score is especially crucial during difficult times. Identity theft is another concern. Fraudsters might exploit your CIBIL score to benefit at your expense, which is more likely amid the current financial crunch. Regularly checking your credit score can alert you to fraudulent inquiries, enabling you to report any inaccuracies and take necessary action.
Managing Credit Utilization and Adjusting Your Credit Score
Your credit utilization ratio is the amount of credit you use relative to your limit, especially with credit cards. If you frequently max out your credit card, it may paint you as overly reliant on credit, which isn’t ideal. To improve this, you might consider requesting a higher credit limit. Regularly monitoring your credit score can also help lower your credit utilization ratio and boost your score. If your score drops, you can figure out why and make the necessary lifestyle changes to improve it.
Conclusion
Remember, your CIBIL score and credit report reflect your creditworthiness. To improve your score, you need to know what it is first, which means regular checks are a must. By being aware of your credit score, you can make smarter financial decisions and maintain a healthier financial life.
Checking Your Credit Score
You should regularly check your CIBIL score and credit report, whether you’re planning a loan or not. It’s easy to do online with your PAN card using the Finserv MARKETS app, where you can get your CIBIL score and a detailed credit report for free. This will give you insights into your financial performance and help you make informed decisions. Additionally, you can apply for personal, business, and home loans with minimal paperwork through the app.
