The information available in your credit report, which includes your credit score, can impact almost every aspect of your life – the amount of money you borrow, the interest rate you pay on it, the home you reside in, and even the job you’re offered. However, despite the fact that 4 major credit bureaus licensed by the RBI – CRIF HighMark, CIBIL, Equifax, and Experian – provide a copy of credit report (including credit score) free-of-cost once every year, not many people avail this service.
Below we will tell you about some important reasons why you should check your credit score at least once every year, and then how to do it online. However, before we proceed, please note, there’s a big myth doing the rounds that checking it yourself can make it drop. That’s not true at all. Performing such a check is counted as a soft inquiry and won’t have any negative impact on it.
Helps you become aware of your financial standing
People are normally advised comprehensive medical checkup at least once a year to help them keep their bodies in top shape. In the same way, checking your credit score can help maintain your financial well-being.
Checking your credit score and ascertaining its good health can reaffirm that you’ve been following correct financial practices indeed, for instance, paying your EMIs and credit card bills on time. Noticing a poor credit score can help you take timely action so that you can put things in order. Unless and until you check it, you will never get to know where you stand.
Please note, correcting a fallen credit score can take months of effort. And it could be very problematic if you’re planning to take a credit card or loan in some time.
Can keep your credit report free of errors
A credit score is normally a 3 digit number which provides a numerical summary of everything detailed in the credit report. Therefore, an error in your credit report can be very damaging for your credit score. It could be anything like a wrong entry regarding debt repayments or simply a spelling mistake. Checking it at least once a year, or regularly, is the ideal way of keeping such costly mistakes in check.
The moment you spot any such mistake in your credit report, you can notify the concerned bank and credit bureau immediately. As long as you provide documental evidence to back your claim, you can rest assured that errors will be corrected and your credit score will bounce back to normal.
You can avoid getting penalized for others’ mistakes
While you may be extremely careful in paying your EMIs and credit card bills on time, others associated with you might not be equally careful, which can hurt your credit report. For instance, if you have co-signed on your spouse’s credit card and s/he is always late in making bill payments, this will also take a hit. You might not even get to know about it unless your spouse informs you about such late payments or you check your credit report and credit score.
It can save you plenty of money
Maintaining a good credit score can save you tens of thousands of rupees in interest payments. Reviewing your credit report at least once every year and keeping a check on any potential errors can keep it intact all year round. As a result, whenever you apply for a loan, you will get the best interest rate, which otherwise can be very steep.
As per an RBI notification dating back to September 2016, all credit bureaus operating in India must offer one complete credit report, comprising of credit score and other details, free of cost upon request, to people. Hence, you can effectively obtain 4 completely free credit reports, one each from the 4 credit bureaus operating in India.
How to check your free credit report and credit score online?
You can access your free of cost credit report online by visiting the official website of each one of the four credit bureaus – CRIF HighMark, CIBIL, Equifax and Experian – and submitting an application there.
If you’re keen on making the most of your good credit score and avail a loan at handsome interest rates, you can visit the GoSahi platform today and compare the best offers from top-rated lenders operating in India.