Why Checking Your Credit Score is Important?
If you are one of those who think that the only time you need to check your credit score is when you are applying for a loan, think again!
Credit score demonstrates your creditworthiness that helps lenders decide whether to approve your application or reject it. A common misconception is that people believe their credit score will decrease if they check it online. This is false!
A credit score check is considered a soft inquiry and does not affect your credit score in any way. However, when you apply for a loan and the lender checks your credit score, it is considered a hard inquiry and results in a slight drop in your credit score.
The best way to counter this situation is to avoid applying for credit too frequently and always be punctual and regular with your credit payments to see your credit score shoot up again.
Access your free credit score online at Clix Capital and be in complete control of your credit health!
Reasons to Do a Regular Credit Score Check
Now let us take a look at 5 reasons to check your credit score regularly:
To Know Your Financial Standing
Your credit score is as important to your financial health as your heart is to your physical health. Ignoring your credit score is not at all advisable if you aim to build a sound credit standing to be prepared to apply for any credit later.
Whether high or low , knowing your credit score is more important than being clueless about it.
If your credit score is low, you can improve it by following simple steps. If your credit score is high, you should work on keeping it that way.
To Be in Control of Your Credit Health
Back in school, some of us would try to cram up the entire syllabus just a night before an exam and still try to ace it; well, sadly your credit score doesn’t work that way.
If you want to apply for a personal loan and your credit score is low, you cannot improve it overnight. Increasing your credit score takes months and years of good financial habits to build up your credit history.
A regular credit score check lets you be in complete control of your credit status and urges you to maintain a good credit history as well.
To Make Sure Your Credit Report is Accurate
Your credit score is a replication of the information present in your credit report. If you check your credit score regularly and find something inaccurate about it, you can dig deeper and get it corrected.
Having an error-free credit report available online at all times makes it easy for lenders to make an accurate decision while deciding on your application.
To Be Prepared for the Possible Outcome
If you check your credit score regularly and apply for a personal loan from any bank or financial provider in India, chances are you already know the outcome of your loan application process. Being in total control of your credit report empowers you to prepare for the interest rate offered. A higher credit score can also help you negotiate better interest rates from lenders.
It also makes sure you’re never blindsided by loan application denials or making you accept the less favorable terms.
To Know What Hurts & Helps Your Credit Score
If you monitor your credit score regularly, you would know what actions can help and hurt your credit score. You would be more mindful of your finances and which in turn will help you plan better and keep a healthy credit score at all times.
For instance, when you choose to apply for a new credit card or to pay off an existing balance, you would be able to see how that affects your credit score.
Know Your Credit Score
If this encouraged you to know your credit score, tap here to find out what your credit report says about you. Click here to check your latest credit report for free. You may be eligible for a pre-approved personal loan offer!
You can also reach out to us at +91-120-6465400 (toll-free)