3 Good Reasons to Check your Credit Score Regularly During the Pandemic Crisis

3 Good Reasons to Check your Credit Score Regularly During the Pandemic Crisis

Many of us might not think about opting for a credit score check unless you are applying for a credit card or maybe a loan. Some might not even have checked it at all. Others might be afraid of checking it for the fear of what they might find. Or maybe it might change after we check on it.

Our credit score and credit report act as an insight into our personal lives and information on how we spend our money, and thus are essential to our financial wellbeing. Regularly checking our credit reports and credit score (such as the CIBIL score) can help us keep track of not only our current financial position in the market but also many other factors that we might have not thought of. Moreover, with the given pandemic it is highly crucial to keep yourself aware of the ongoings of the financial world and how your place is affected by it. Let us find out.

Know where you stand

Credit reports and CIBIL scores are important for your financial health. Discarding any information on it is pretty much the same as ignoring your physical and mental health. Be it bad or good, it is good to know where you stand and what all you can achieve with your creditworthiness. This is what banking institutions also check the first thing when you apply for a credit card or a loan.

Error identification and security against identity theft

When applying for a credit card or a loan, the financial institution will send your details to the credit bureau. Any errors in your details can be harmful to your credit report. For example, a spelling mistake in your name, or a default in your payment, or something never applied for. Keeping yourself updated with your CIBIL score can prove crucial especially in these trying times.

Theft of identity occurs when someone misuses your CIBIL score to reap benefits by using your name. This is more likely to happen given the ongoing pandemic as almost everyone is in a crunch these days. Fraudulent misuse can lead to your credit score getting deteriorated. Doing a monthly credit score check can help flag such inexplicable inquiries made that are fraudulent in nature. These inaccuracies can be identified and reported to the concerned authorities for appropriate actions.

Maintaining credit utilization ratio and making quick changes in credit score

This is the amount of credit you use and spend for your livelihood, and is used in case you are using a credit card. If you are one of those people who abuse the maximum limit of your credit card, then I have some bad news for you. Banking institutions consider you to be a credit-hungry person making it a problem for the future. As a possibility, you can ask for an upgrade on your credit limit, doing a regular credit score check can bring your credit utilization ratio down and improve your credit score ultimately. Regular checks made on your CIBIL score can also help you make quick informed decisions on credit score. If for instance, it might have fallen, you can use this to identify the reason for this fall and make changes to your lifestyle accordingly and improve your credit score.

Conclusion

Remember that your CIBIL score and credit report reflect information on your creditworthiness. To change your credit score it is important to know your credit score first. And this can only be done by making regular checks in the first place, and then changing your spending habits. Checking your credit score will not change it. But being aware of it will help you make better-informed decisions about your life and lead a financially healthy life.

Where to check your credit score

It is important to check your CIBIL score and credit report on a regular basis, whether you’re planning to take a loan or not. You can check your CIBIL score by using your PAN card online in minutes. All you need to do is visit the Finserv MARKETS app, where you can obtain your CIBIL score for free along with a free credit report.

You will also get access to your performance across parameters, providing you with the right financial perspective for making key decisions. Moreover, you can also apply for hassle-free personal loans, business loans, and home loans with minimal documentation.

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