5 Reasons Why You Should Check Your Credit Score Regularly

0
291
5 Reasons Why You Should Check Your Credit Score Regularly

5 Reasons Why You Should Check Your Credit Score Regularly

5 Reasons Why You Should Check Your Credit Score Regularly: A credit score indicates your creditworthiness. Let’s take an example; If you are a person who has taken an instant loan one or more times, it will reflect the payment behavior in your credit score. Therefore, a credit score will be helpful for lenders to decide if it is a good idea to give you a loan.

In India, most lenders check the CIBIL score to determine the ability to take credit. So check your CIBIL score regularly to stay on top of your ability to take credit, which will also open up new avenues for better deals in the future. If your credit score is above 750 then your credit score is good.

Here are 5 reasons why you need to check your credit score regularly:

Be aware of the impact of your actions on your credit score:

Regularly checking your credit score will help you better monitor your financial performance. If your credit score goes down, you can take steps to improve the score. If you check your CIBIL score regularly, you will gradually understand the impact of your spending habits and the various parameters to determine your score.

Confirm the accuracy of the information:

Sometimes, if there is an error in the presentation of your credit score, you can correct it in a timely manner before it has a major impact on your financial health. Liaise with the respective credit bureaus to resolve the issue as soon as possible. This will help you keep your credit report error-free.

Know your financial stability:

If your credit score is healthy and improving, it is an indicator that you are at the top of your financial health and improving. It also suggests that you are making wise decisions when it comes to paying EMIs and other things. By making sure to check your CIBIL score regularly, you will be on top of your finances.

Decide when you are eligible for a better credit card or loan:

When your credit score is green, you are in a position to get better deals on credit cards or loans. All lenders look for an applicant with a good credit score, when they are willing to offer a better deal to such applicants.

Early detection of fraud:

Cases of identity theft are on the rise. Therefore, it is imperative that you regularly review your credit report. By checking Marcus regularly, you are in a position to monitor in a timely manner and correct any suspicious activity.

Monitor your credit utilization ratio (CUR):

The Credit Utilization Ratio (CUR) is a ratio that reflects the amount of credit you have already used and helps you determine how much money you can borrow in the future. If you are a person who is making maximum use of credit cards frequently, it will have a negative impact on your credit score. It is ideal to keep your credit utilization rate below 50%. This is one of the main reasons why you need to check your CIBIL score.

Leave a reply