Blog!
Top 5 benefits of checking your credit report regularly
Ongoing credit assessment is not just about checking your credit score and credit report regularly. Find out how a simple action can help you in more ways than one. Consistency is the key to many good things in life, such as refining a new skill, learning a new language, or developing a suitable body. Being creditworthy always requires similar efforts. As we all know, a good credit score has creditworthiness. And a credit score is a numerical expression of past credit behavior and an indication of your creditworthiness for lenders. The number ranges from 300 to 900. A higher score means a higher credit rating.
In India, credit ratings and reports are issued by four credit agencies, Equifax, CIBIL, Experian and CRIF High Mark. The first step in obtaining creditworthiness is a continuous and thorough assessment of credit risk. Does the rating term sound too complicated and foreign? Do not worry! Ongoing credit assessment is not just about checking your credit score and credit report regularly. Find out how a simple action can help you in more ways than one. Here are the top five rating features. Continue reading:
1. Know your credit position
With the arrival of many Finnish companies, your credit score is no longer hidden from you. These companies allow you to check your scores as often as you want. So you have better control than in previous times, when lenders verified your credit card / loan application. Having the power to control your scores also makes it easier to take corrective action. There are many options. Get a credit health report that will give you recommendations for improving your score. There are also services that give you the much-needed grip when clarifying problematic accounts and increasing your credit score, and as a result, they are reflected higher on credit agencies.
2. Secure errors in your credit score
Lenders from whom you borrow are required to report repayments and other related activities to credit bureaus. This includes reports that you have paid / canceled or cleared your credit account. Did you know that credit agencies do not have information on whether the data reported to them is inaccurate? Or because of this they are not able to adjust themselves. The responsibility for reporting and correcting these errors therefore lies directly with individuals. This is only possible if you frequently check your credit score. This is the only way to detect errors and possibly correct them. Who would want to get a lower credit score through no fault of their own?
3. Keep the hard questions in the bay
Each time you apply for a loan, the lender goes to the credit bureau to check your credit score. These questions provided by creditors are called hard questions. All hard questions are charged and reflected in your credit score. Frequently and hard questions, which are still rejected for lack of a good credit score, reflect you in a bad light. Such a person is considered a Credit Hunger. On the other hand, when you check your score, it will only be considered a "soft poll" and will not affect your credit score. So isn't it better to check your score and then apply for a loan? This would only be possible if you frequently check your score.
4. Landing at a better rate
All lenders are looking for the lowest possible interest rate on their loan. How do you do it? This is only possible if you are a good lender or in other words a good credit score. Some banks have already started to offer better interest rates with a rating higher than 760 to home lending banks. It is only a matter of time before this practice becomes a sectoral practice. Knowing your score in advance gives you the opportunity to agree on better interest rates with your lender.
5. Take advantage of pre-approved offers
Fintech not only allows you to check your credit scores for free, but also has pre-approved offers of different credit products for different ranges of credit scores due to their links to different lenders. You can also compare offers available in the market and choose the best one. As they say, prevention is better than health. The same is good for credit health. Always pay on time and check your credit score from time to time to make sure you're always a good credit.
