It is a common notion that banks and financial institutions go through credit reports before approving the best credit card applications, and this is the only time when you think you should check your credit score. Most people think that checking their credit score may cost them and may also reduce it by a few points, but is that true at all?
Today, we are going to clear the air and give you some significant reasons to check your credit score on a regular basis. First, you’ll be glad to know that everyone is eligible for one free credit score check from any credit rating agency annually.
Now, this is where CreditKaro comes in, at CreditKaro you can check free credit score as many times as you want, what’s more? You can get relevant information and important tips on how to improve your credit score with CreditKaro blogs. We do some intense research on your behalf and make sure you stay updated with all the new hacks to stay ahead in the game!
We listed some significant reasons on why you should check your credit score on a regular basis:
AIMING HIGHER –
Keeping an eye on your credit report helps you know where you stand, and if you stand a chance of getting the best credit card or a higher limit on a loan. Better the credit card, better will be the benefits and the limit on it, similarly a bigger cap on your loan would mean that you will have more time to pay it back. So, the point is if you keep a tab on your credit score on a regular basis, chances are that you will always have an edge while negotiating limits.
ASSURES YOU FOR THE FUTURE –
Say, you applied for a loan and your application got rejected. Now, you are just sitting there clueless, thinking why your application got rejected. If your credit score is low, it is obvious that banks and other financial institutions would be skeptical before even going through your application. The point is if you keep a check on your credit score regularly, you will exactly know when to apply for a credit card or fill a loan request. Checking your score beforehand does give you that psychological edge because if your score is good you know how much you can stretch your limits.
GET A MORE DETAILED PICTURE –
Most of the time people have no clue about a lot of facts related to their score, why is it low? Why is it not increasing at an expected pace? What is it that impacts the credit score? A lot of questions arise, and everything just becomes rocket science for a while! To get a more detailed insight into your credit score, it is very important that you go through your credit report. It has all the relevant information about your credit score, it shows you all the parameters that impact your score directly. If you know what effects it, you will be better prepared for the future.
SOFT CHECK –
Most people construe that checking credit score online will reduce the score eventually, which is not actually true! When you apply for a credit card or a loan and the lender checks your credit score, it is considered to be a hard inquiry which might result in a slight dip in your score, however, if you check your credit score by yourself, it is considered to be a soft check and does not affect your credit score by any means.
AVOID FALLING INTO A DEBT-TRAP –
Checking your credit score regularly is just keeping a check on your financial well-being. It ensures that you watch your financial habits and follow good financial practices in order to maintain a good credit report. Many times it happens that we get carried away with our expenses on credit and before we realize, we fall into an inevitable debt-trap. Keeping a check on your score helps you maintain stability between your loans and expenses.
Maintaining financial stability is no rocket science if you follow the right financial practices. So, do not shy away and Check free credit score in India.
Additional Reading – FACTORS THAT CAN BOOST YOUR CREDIT SCORE!