If in case you are apprehensive regarding CIBIL score check or Experian score check or any other score check through other bureaus owing to the fear of lowering it, relax! This will not cost you a penny. Moreover, you are eligible to avail of 1 free credit report from each of the credit bureau in a year. All 4 credit bureaus include CIBIL, Equifax, Experian and CRIF Highmark.
However, in case you think that just checking your score before applying for a credit card or loan would do, you must think again! Holding a 750 plus credit score is one of the prudent ways to enhance your credit eligibility when submitting loan or credit card applications.
And here is how online financial platforms can sweeten the deal for you. Financial platforms allow you to conduct your CIBIL score check for free! Not only once, but as many times as you want. Alongside, as an additional perk, you will receive notification each time your credit report is refreshed! Isn’t this awesome?
There is a general misconception among many that reviewing a credit score on your own will lead to a drop in your score. This is not the truth. Reviewing your credit score on your own is equivalent to soft enquiry and does not hamper your credit score in any way. Hence, please knock yourself now!
However, when you make an application for credit, lenders ensure to review your credit score first, which counts as a hard inspection, which results in a slight decrease in your credit score. But do not worry. Applying once for credit directly with the lender or creditor just leads to a slight fall in your score. However, ensure not to apply directly with multiple lenders or creditors in a short span as it would result in a drastic credit score fall. And you do not want this to happen as it would lower your eligibility to qualify for credit. Instead, you must take the route of online financial markets and compare amongst different lenders before you choose one of them. Applying through online financial markets will not hamper your credit score in any way because it is considered a soft enquiry.
Now let us go via the top 4 obvious reasons to check your credit score regularly:
∙ Know about your financial standing
Like regular healthcare checkups are a must to keep you in good health, a regular checkup of your credit score too is necessary for a secure financial life. If you hold a good score, maintaining the same score will ensure higher eligibility for credit and the opportunity to avail of lower interest rates and processing fees on loans. A disciplined credit habit to maintain a good score include following the correct practices like repaying your loan EMIs and credit card dues within the due date, maintaining a healthy mix of credit, keeping a lower CUR of up to 30 percent, avoiding multiple direct credit enquiries in a short span of time, regularly checking your co-signed or guaranteed accounts for timely repayments and periodical checkup of your credit report to detect any errors and report them for correction within the time for instant rectification. All these are remedial ways to maintain a good financial standing through a strong credit score of 750 and above.
∙ Ensure that your timely repayment section for credit cards and loan EMIs are always in green
A credit score of 750 and more enhances your chances of availing credit card or loan. However, maintaining a strong credit score needs financial discipline towards your repayments as well as patience. Keeping an end-to-end check or review on your score is the only way to make sure that it is not sneaking onto the red zone. A fallen credit score will take months of pinching as well as hard work to increase again. This can be highly problematic if you want to need a credit card or loan during a financial crisis. Keep a close view on your credit score, & you will be able to know your eligibility chances.
If your credit score already is in the flourishing 750 margins, you can take relevant steps to increase your score to the 800 margins. In other words, reviewing your score periodically will endow you with an accurate idea about how you are managing your credit line and finances.
∙ Keep your report free from errors
Your score is a 3-digit number, which is nothing but a numerical summary of different credit details in your report. Any mistake or error in your credit report holds the chance to wreak havoc on your credit score. It may be anything from spelling errors to incorrect entries about debt repayments; all of it can reduce your credit score. Reviewing your credit score on a regular basis is the best medium to avoid any such errors from lowering your credit score.
If you view any error in your credit report, ensure to notify the lender or creditor and the concerned credit bureau immediately for rectification. A rectified report can automatically enhance your score.
∙ Ensure to be in control of your credit card and loan applications
Many individuals often commit the mistake of reviewing their report after their credit application submission. While there is nothing wrong with this at all, it serves zero real purposes. On the other hand, reviewing your credit score before application submission is one of the best ways to ensure application approval. If your credit score is excellent, all your documents required by the lender or creditor are in order, and your application form is correctly filled up, you are most likely to avail the credit approval with zero hassle. In case you are applying for private banks or PSUs, ensure to conduct a regular CIBIL score check as for ICICI, Axis, SBI, RBL, Yes Bank, IndusInd Bank, HDFC CIBIL score is crucial.
A quick tip: Many online digital platforms offer instant approval on a specific loan or credit card offers. Thus, you may even check up on such offers and if it matches with your requirement, opt for it as such credits are approved on the same day of application without any documentation requirement.