When it is about reviewing your credit report, it is crucial to forming a plan. You require knowing what info you want to check, how often you must check and what the expense is of availing such info. Few online personal loan applications offer a free credit check nowadays. Checking up on your credit report can extremely be tricky. You must ensure to always keep a thorough tab on your finances. Ensure to always keep a thorough eye on all your banking activities and monitor your balances and accounts through online banking or email, SMS alerts or check up on your credit report periodically.
Doing this could assist provide protection against fraud and identity theft, which may cost you a lot if left unchecked for a long time. Here’s everything you must know about CIBIL score check.
What info do you require to check your credit report?
In case you are planning to open a savings bank account or opt for a credit card, availing a loan from a reputable personal loan application or purchase a home, you may likely want to review your credit report to the extent possible as the lenders tend to do. By fetching your credit report, you can keep a thorough tab on your financial health and condition and even check up on your credibility periodically. You will even require knowing what info the report contains and accordingly knowing your financial standing. Note that CIBIL score range anywhere between 300 and 900, wherein 750 is considered a good credit score.
How often must you check your credit report?
You must review your credit report once every 3 months to remain informed of any type of changes in your past credit record that could impact your potential to avail a loan or mortgage in upcoming times. This would endow you with a heads-up on the changes in your credit history that could be creating massive difficulties for you down the lane. Also, you could check up your credit report more frequently in case you hold a credit card or just opened a savings bank account.
Should you make a fee payment to fetch your credit report?
In many countries, credit bureaus usually tend to make their report available at no cost. However, credit bureaus might levy a charge for offering your credit report if you fetch more than once in a year. The importance of fetching a credit report cannot be ruled out. The RBI (Reserve Bank of India) as of 1st September 2016, through a notification, made it a must for all 4 credit bureaus in India i.e., Experian, Equifax, CIBIL TransUnion and CRIF High Mark to offer one free report including the credit score once in every year on your request.
Read on to understand the benefits of a credit score –
A strong credit score ensures you get various benefits over those holding zero credit scores or those with a lower score. You are often entitled to the benefits listed below if you hold a strong credit score –
Lower rate of interest at better terms on various credit options –
One of the crucial benefits of holding a strong credit score is that financial institutions may provide you with credit cards and loans at a lower rate of interest. Also, you can get other crucial advantages too like a discount on processing charges and high eligibility to avail a higher loan proceeds.
Ameliorate your chances for loan and credit card approval
You as a borrower with a good credit score are looked upon as a low-risk individual and thus the chances of getting approved for credit cards and loans are higher.
Access to prudent rewarding credit cards
With a high credit score, you are eligible to get access to rewarding credit cards in the market, including those that provide the lowest rate of interest and best rewards like cash cashback, reward points, travel points and various other important benefits.
Get approved for a higher credit card limit on your card
With a strong credit score, you can even get approval for a higher credit card limit on your existing credit card. Creditors most likely lend you more money owing to your proven credibility.
Eligible for a preapproved loan deal
If you are a borrower with a strong credit score, you become eligible for a pre-approved loan deal. Usually, a pre-approved loan deal is provided by banks to existing customers with a strong credit history. Thus, it is important to maintain a strong credit score if you are looking to enjoy the above-listed advantages.
Should you opt for the paper copy version of the credit report?
This is really a personal choice whether you should hold a paper copy version of the credit report. This is available in digital format, of course. However, based on the terms and conditions of the lender, who might ask you to provide a hard copy version of the credit report, you will want to ensure you have this with you as you place an application for a loan.
In case you hold a hard copy of your credit report, you will require getting the same scanned and saving this as a PDF. You will even want to ensure that the info on the copy is 100 per cent correct. Few of the credit bureaus may have the info mentioned on the report available on the online platform. If you hold a paper version, you will require ensuring that it fits the info mentioned in online form.
What are the important tips for monitoring your credit report?
If you are looking to keep a thorough tab on your financial scenario while residing in India, you will want to check up your credit report at least once every month. Doing so would assist you to get the idea of any changes in your history that could impact your potential of availing a loan in the upcoming times.
If you hold a credit card or open an account while residing in India, you will look to keep a close watch on your account and ensure it is being paid off a month on month. Also, you could consider opting for an identity theft protection service to protect yourself from fraud. If you are interested in monitoring your report in India, you will require to know what info you are looking for.