Are you a health freak? Are you one of those who wake up at 5.30 in the morning and goes to work out on a daily basis? Have healthy food throughout the day and is rigorous about maintaining the perfect health? If yes, have you ever thought of your financial health? Isn’t that important as well? A healthy financial health will lead you to money miracles and if failed to adhere it can cause you a lots of problems.
What is the main essence of a good financial health you ask? It’s nothing but a good credit score. A credit score is a representation of your personality in eyes of a lender on how you are doing financially. There are ranges of credit score which will determine if you are credit worthy or not. You will pray to be on a higher of the score as it opens lots of doors to financial products to avail.
Here are some tips on tracking your credit report and maintain a healthy record,
Know your credit score
Many people make this mistake and never check their credit score on the first place. They only happen to know this term when they are applying for a loan or a financial product. Get your free cibil report and check what your score looks like. Is it bad, good, worse how much do you need to work on the same?
Keep a track
Your financial transactions are recorded frequently by your lenders to the credit bureaus. These transactions are like a summary of your financial well being and how your future lender will see you. It’s important to keep track to understand if the actions are helping you improve your cibil score.
Fix your details
Credit bureaus tend to make lots of mistake while entering your transactions towards your account. You need to check and report any errors you see when it comes to the transactions on your report. Not only transactions, but every details like your name, surname is to be rectified as this can lead to major problems like identity theft.
Only borrow what you need
When it comes to availing a loan or a credit card, always check your requirement. Do not avail more than you need as this will cause you a lot of damage financially. Just because people have pre-approved loans and open credit, they misuse their finances and then face lots of issues financially. If you think you happen to have a lot of open credit accounts than you need, try closing them with ease and try buiding a secured financial future.
Be smart when applying for a credit
When you are applying for a loan, it’s tempting to apply towards a few credit providers just to see how the market can favor you while applying for a loan. This practice can not only deny you a loan, but can also take a toll your credit score. When you apply for different loans or credit cards every enquiry is counted as hard enquiry and is recorded on your credit report. These enquiries stay on your report for a very long time and are visible to your future lenders that you made multiple applications to avail a loan in the past.
Do not miss on any payments
Life is tuff, we understand that and due to unconditional situations, you may miss on payments. Do not do that! It’s really important to make all your payments on time and maintain that financial integrity so that your credit score is maintained and you also don’t encounter any late fees and penalties.
Maintaining a healthy record sounds like a lot of work, but it can be a savior when it comes to availing a financial product. Few simple steps towards maintaining a good finance can help you in many ways you cannot imagine.