Credit score or CIBIL score is one of the benchmarks that financial institutions use to assess your financial viability. You must have read about it or heard from your financial adviser that it is always good to have a close eye on your CIBIL score. However, do you really know the reason why you should be more updated about your CIBIL score? In this article, we will talk about 4 reasons why you should check your credit report regularly.
In our fast-moving lives, it is very easy to ignore the financial matters. However, you should at least keep a close eye on your credit report. You might need your CIBIL score for loan or maybe when you are planning your next financial milestone. Financial institutions, like Fullerton India, offer a very good interest rate on personal loans to people having a great CIBIL score.
Reasons to check your Credit Report regularly
Impact of Overdue Payments
The monthly or quarterly premiums or EMIs are a financial obligation. If you miss on any of these payments, then your CIBIL score gets severely affected. Sometimes, you may not understand the consequences of these effects in the short term but in the long run these overdue payments can put you in a spot of bother.
Checking your credit report regularly is a great way to keep a check on your financial health. It will give you a quantitative measure of how your financial viability looks like. It is very important to have a good CIBIL score. Every payment and overdue reflects directly and proportionally on your credit report and hence, it gives a good insight about your financial obligations.
Better Terms for Negotiation
A good credit score comes with its own pool of benefits. Right from getting a good bargain on your next financial product to saving on an insurance scheme, an above average credit score gives you an upper-hand while negotiating with lenders. The rate of interest on personal loans is much lower for customers with a great credit report. You can check for great deals on an online personal loan interest rate calculator.
Keeping it Error Free
Despite your efforts towards fulfilling your financial obligations, there might be some errors in your credit report. If you don’t keep an eye on your credit report, then these errors can go unnoticed for a long time. When the time comes for you to take the next big step financially, these errors might hurt you in big way.
Hence, checking your credit report regularly is important. You can spot these errors on time and report them or dispute them. It is your right to get them corrected and find the source of error to make sure it does not happen again. This will also help you in better understanding the underlying regulations making you to take smarter financial decisions which do not cause such errors in the future.
Avoiding any possible identity theft
The digital revolution has its own vices and identity theft or hacking is one of them. Every year a lot of people are duped off their hard earned money and economic rewards by miscreants who impersonate and take advantage of innocent people. You should keep checking your credit report regularly as it will give all the details about your financial transactions. It is a great way to make sure that no one is taking an advantage of your negligence or using your CIBIL score for a loan.
Hence, a credit report is an important document which you should keep checking regularly to have a check on your financial viability
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