CIBIL or credit bureaus collect all the information provided by banks and financial institutions and create your credit report. Based on your borrowing history and repayment record, you are assigned a CIBIL score between 300 to 900. Your credit report is very important to avail a loan. In this blog, we will be discussing various reasons why you have to check your credit report.
Checking credit report often helps you know your financial situation. It shows your credit score as well as outstanding debts. In case you have a poor credit score, your credit report will help you know the reason why your credit score is going worse. After knowing the reason you can work on improving your credit score. A good credit score can help you get good offers on loans and credit cards.
Errors in the credit report can be identified through frequent checking. Your credit report contains all information such as EMI's you are paying, payment defaults, credit card balance and so on.
Whenever you apply for a loan or credit card, banks will check your credit history to determine your creditworthiness. Your application will be rejected by the bank, if there are any errors regarding your loans and personal information in the credit report. So, it is advisable to check credit report quite often.
We are all aware on the frauds that are taking place these days. One of the most common frauds is identity theft. Cases of identity theft are increasing each day. Under this fraud, fraudsters use your information to avail loans in your name without your knowledge. Checking your credit report periodically will help you identify suspicious transactions.
To avoid unnecessary problems, it is advisable to check your credit report once a year. But, many people never check their credit report. There are three important stages in life where it is necessary to check your credit report.
See Also: 5 tips for reapplying after your credit card application is denied
You have to check your credit report if you are planning to move out of your parent's house and plan to start an independent life. You will have a lot of responsibility once you move out of your parent's house and your credit will play an important role. For example: If you are planning to buy a new house by availing a home loan, you need to have a good credit score. Your home loan application will be rejected if your credit history is bad.
Even if you are planning to move to a rented house, you have to furnish your house, for this you need a consumer loan. You will find it very difficult to get one if you have bad credit history.
Marriage is a big step in your life. You will have to take up many responsibilities once you get married. For instance: You have to buy a new house or go on a foreign trip with your life partner. And of course you have to depend upon loans to fulfill these needs. Your credit history plays a major role in all this. So, it is advisable to check your credit report before taking the biggest decision of your life.
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