Building financial strength is not a child’s play they say, and it is true. It takes years for you to create a space for yourself where you sit back and relax, thinking that you have enough money to give wings to your dreams. This situation does not come running to you instantly, for it takes years of experience to build a comfortable financial situation and to maintain it for a longer tenure, it is very important that you keep a tab on your borrowings and your expenses.
Checking Your Free credit score online gives you an idea of where you stand currently. When you check your credit report, you tend to find out more about your financial practices which you have been ignoring for a while. Let us find out why checking your credit score Online is so important to your lifestyle.
Know Where you stand:
Today, you have an edge over banks and financial institutions, because you can easily apply for a soft check before applying for a credit card or a loan. Banks and other lenders use your credit report to identify if you are a responsible borrower. You can easily perform a soft check beforehand and decide if you really want to apply for a loan product right away. In case you have a low credit score or a score that doesn’t qualify for a loan, then you can wait out the time period and learn how to build your score, these days most credit rating agencies give abundant information on ‘how you can improve your credit score’.
Get your errors corrected:
Most credit rating agencies get their information from your Bank or the Lenders you have borrowed from. This is the only source the credit rating agencies get their information from and there is little chance of getting that information cross-checked before you find out that there is an error in your report. Therefore, checking credit score online is the best way to check if there is false information in your credit report.
Stay away from hard inquiries:
When you apply for a loan or a credit card from a lender, the lender performs a hard check on your credit report. This hard inquiry may impact your credit score and may also reduce it. The best part about checking credit score online is that you can perform a soft check before applying for a loan product which will not have any impact on your credit score and you will know if you are ready for new credit.
Get a better interest rate offers:
Lenders are lenient with the borrowers who have a good credit history. It is obvious that if you have a good credit score, naturally you will get more offers from lenders and at lower interest rates. Having a credit score between 750-900 will double up your chances of getting approved for higher limits and lower interest rates.
Get pre-approvals on Loan:
When you visit a website to check your credit score, you also come across a lot of loan offers. The best part about checking your credit score online is that you can instantly find pre-approved offers after checking your credit score. If you have a good credit score, then you have the luxury of choosing the loan product of your choice.
Is checking credit score online on unknown websites a safe thing to do?
Yes, it is absolute safe to check your credit score online. You can simply go to google search and find out the list of websites that provide you with a free credit score. Checking your credit score online is free and it does not affect your score. If you want to check free credit score, click here.
Will checking my credit score have an impact on my credit score?
No. When you are checking your credit score online, it is called a soft check. Your credit score does not take a hit if you make soft checks. Your credit score will only take a hit when a lender performs a hard inquiry before approving you for a loan. So, you can freely check your credit score online.
Q1. Who calculates my credit score and where can I check it?
Ans- Credit rating agencies are responsible for calculating and providing your credit score. Individual credit rating agencies are associated with Individual fintech websites to bring relevant information. You can simply log on to CreditKaro.com and check your credit score for free!
Q2. How is a credit score different from a credit report?
Ans- Your credit report has detailed information about your credit history and includes your credit score which is a 3-digit number between 300-900 which defines your financial health.
Q3. If I check my credit score frequently, will it affect my credit score?
Ans- No. Any soft check made on your credit report does not pull down your credit report.
Q4. Can credit scores provide by two different agencies differ from each other?
Ans- Yes. Different credit rating agencies may differ with their results as all the credit agencies measure your financial health based on different algorithms.