Why You Need to Check Your Credit Report Regularly?

Keeping a check on your credit report is as essential for your financial health as is annual health check-up for your medical wellbeing! Indeed this is very important for managing your personal finances coherently.

When you keep tabs on your CIBIL report, you basically keep tabs on your expenses. You get a snapshot of your financial worth in the form of credit rating and credit score, besides finding out vital financial details such as outstanding account balance, pending credit accounts, credit cards, loans and other bills. This brings out a clear picture of your financial obligations to you. This helps you clearly know your current outstanding and you can accordingly plan for future credit.

You should always check credit report online several times in a year. When you do review the report regularly, you can be rest assured that your report has all the accurate facts and information. There is no discrepancy whatsoever. This saves you from perils of “identity theft” and “raising dispute to improve the score”.

Identity Theft

This is a hideous financial crime against you. You should always be cautious if you spot an unidentified activity or bank query made on your report. In an identity threat someone can use your personal credentials to raise the credit. They may get the loan approved and enjoy the credit while you would be the one who will be liable to pay the dues. If you fail to pay the dues, your credit score will reach bottom soon.

Thus you should always be very careful when you share your personal information with any one. Keeping a check on your credit report helps you identify any nuisance if at all imposed on your name in the credit report.

Identify Disputes

Sometimes your scores fall due to mistakes on your report. Herein you need to raise dispute with concerned authorities and get the correction made as soon as possible so as to improve the score. The sooner the correction is made, the better it is for your credit score. Thus it is very important to keep a check on your report so that any kind of reporting mistake, missed update, or wrong information on your report do not ruin the score for long. As soon as you identify the error, you would get it corrected within 30 days.

There are other benefits of studying credit report as well.

When you regularly monitor credit report you can make sure that your credit score is always positive. With better score you get the confidence for enjoying credit freedom in future as well. That is why your credit score determines your credit freedom. As you are aware of your financial freedom you can confidently contact lenders for the credit and that too, at lower interest rates!

However, if you are looking out to find a loan for low credit score, you again need to monitor your report. By monitoring report, you can correct the bad points in the report and make progress towards credit in future. Checking reports always help you evade bad history and ensure the loan availability whenever desired.

If you do understand your credit report, you can certainly be confident of handling all the disputes yourself, without a professional help. It comes really handy when you want to try different ways to improve credit score yourself. Thus, every person who has a credit history should know how to check free CIBIL report online. One can log on to freescoreindia.com to avail free credit score.

Your report has relevant data about you. It comprises of your loan and credit card repayment details, credit ratio usage, available credit details and every other information about your credit functions. So by monitoring the report you get freedom to analyse your financial obligations whenever you want. This helps you keep track of all due amounts for different kinds of loans and credit cards and take steps to not miss a payment. You can successfully exercise financial discipline by studying your report frequently.

After all, checking credit report is free and you can do so as and when you want. It does not have any negative impact on your rating. Thus always stay informed by checking the report and keep your scores intact.

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