In case you are anxious about conducting a credit score check online as you fear that it might be reduced, relax! This will not cost you anything. In fact, you avail of 1 free credit report every year from each of the bureau, namely Experian, CIBIL, CRIF Highmark and Equifax. Alternatively, every month you can check CIBIL score for credit card and loan applications by visiting online lending platforms. Such platforms provide one free credit report every month from each of the credit bureau based upon your request.

Note that in case you think the only time you require checking your credit score is at the time of applying for a credit card or loan, you should revisit! Holding a credit score of 750 is one and the only way of boosting your eligibility for loans and credit cards. There are a lot of myths among individuals wherein one such misconception is reviewing credit score on your own would lead to a drop in score. It is not the truth. Reviewing your credit score counts as a soft enquiry, which does not reduce your credit score in any way.

Note that when you apply for the credit and the lender reviews your credit score, it counts it as a hard inquiry, which leads to a slight fall in your credit score. However, do not worry. Just avoid applying for a lot of credit over a short period of time. Doing so would make multiple lenders/creditors fetch your credit report, which would lead to a drastic fall in your credit score. Also, ensure to repay your debts in time as it would prevent your score from random shoot ups.

Now, look at six obvious advantages of conducting credit score checks online regularly:

∙      Know about your financial standing

Just as regular health checkup is important to maintain good health, a regular credit score check online is crucial for your overall financial wellbeing. If you hold an excellent credit score, remaining on top of it would require you to adopt the correct financial practices. Good financial practices include timely repayment of loan EMIs and card bills, maintaining a CUR of within 30%, keeping a balance between secured and unsecured loans, avoiding multiple credit enquiries within a short span etc. Apart from this, it is also pivotal for you to keep a regular eye on your report to detect any incorrect data or discrepancies. Knowing such errors on time allows you to reach out to your lender/creditor and credit bureaus on time to make the required corrections. Timely corrections automatically increase your score.

∙      Make sure your credit score always is always on the higher limit so that you can avail credit in instant monetary crunch situations

A credit score equaling 750 and above enhances your chances of availing credit card or loan. However, maintaining a strong score needs patience and financial discipline. Constantly checking your credit score is one of the best ways to ensure that it does not sneak toward any red zone. A reduced credit score takes months of pinching as well as hard work to increase again. It can be very troublesome if you happen to require any credit card or loan during a financial crisis. Ensure to keep a watch on the credit score, and you will be able to solve any decline instantly.

∙      Ensure to keep a credit report free of errors

A credit score is a 3-digit number, which is a numerical summary of your credit details. Any credit report linked error can wreak havoc on your credit score. Anything from a wrong entry to a spelling mistake can reduce your credit score. Reviewing your credit score periodically is the only way to avoid these errors.

While conducting a credit score check online, if you detect any error in your credit report, notify the bureau as well as the concerned bank instantly. Ensure to back your claim with valid documents. In case your claim is legitimate, be rest assured that the changes will be made, which will help your score bounce back to normal.

∙      Keep your enquiries for loan or credit cards to minimal

Most people commit the mistake of checking and evaluating their Credit Score after submitting their loan application. There is totally nothing wrong with this, but it serves no real purpose. On the other side, check your credit score before you submit your credit application to ensure it is carried out in an effective manner to ensure the application is approved. In case your credit score is excellent, all your documents are proper, and the credit application form is filled up correctly, you will most probably get the application for credit approved with zero hassle.

Tip: Many online lending platforms and banks/NBFCs provide instant credit application approval on loan or credit card offers. In case you find your score is lagging, please wait till you fix the score before submitting the credit application. Even if your annual income is on the higher end, financial institutions may still look at your score before the final approval.

Your score is a representation of your capacity to repay. Banks would rather endow credit to individuals with a good repayment history than those with a high salary but a bad repayment track record.

∙      Avail important insights regarding your credit score

Do you want to understand how a credit score exactly works? Your report holds all secrets to your score. It showcases different parameters that impact your credit score. Every parameter contributes differently to your credit score. Studying such parameters tells you what is going on and is required to be done. By reviewing your credit score, you can concentrate on regions that pull your credit score down.

∙      Avail better credit

You may have kept your eyes set on a specific loan or credit card, but what if your score states that you deserve a credit better than what you have chosen to take? This is the absolute reason why it is insisted that you conduct a credit score check online regularly. For instance, having a good credit score means a higher probability to avail of high-end credit cards for higher benefits and rewards.

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By Grace