Your credit score is the accumulation over a period of all your repayment of credit facilities taken from Banks and Financial Institutions. This decides your eligibility for your loan, interest rate, tenure, and so on.
You can never have a credit score and are regarded as new to credit if you've never taken a loan. You get a really high credit score and decent credit health in exchange if you have a credit card or loan, paying all your dues on time.
Your credit score determines your credit value or your eligibility for loans, credit cards, etc. Bad credit costs you thousands because it is seen as a liability and the banks or NBFCs give you a high-interest rate. You might also bear your dream job, given that certain companies are also screening the credit score.
Lenders on top of that are well aware of where you stand with regard to credit and the first thing that you should do before applying for new credit is to obtain a credit report.
An example here would serve as the right reference.
Credit health is similar to your physical fitness. Credit health can also be achieved through set goals and practices such as training for fitness at home or in the gym. In both cases, effort and discipline are common.
WHY YOU SHOULD CHECK YOUR CREDIT SCORE REGULARLY?
Consider checking your credit score such as a prompt health check, which shows your current status. In other words, a credit health check is a window where banks can better know themselves and how they manage their credit. Some refurbishments are here:
- Only if you monitor a diet person, you will be able to keep a track of any payments made on a monthly basis where you can monitor any payments that are missed. · If any changes are required, your credit score will be checked. ·
- If you do not see any weight changes, you can see any negatives that allow you to remedy the situation before applying for future loans by regular score checks. It takes time to correct a negative list, as more time passes, i.e. the older the listing the harder it is to correct. It is, therefore, better to clean these lists into the bud.
- You can also use a credit guide who will be able to track advice and tips following your execution – so you can see whether or not the advice works and where you can change your approach or change your credit coach.
- The creditors' erroneous information – likewise a person preparing for misinformation, checking your report, often helps to resolve disputes and correct errors.
- Unauthorized credit check: when somebody does a hard check without your explicit permission for your credit score.
Continued monitoring of your credit and loan report gives you the benefit of applying for a loan or even a new job in some cases.
HOW OFTEN SHOULD ONE CHECK YOUR CREDIT SCORE?
It is best to check your credit score at least once a year before applying for credit (loans, credit card, etc.) to ensure that you are qualified to apply for credit and avoid refusals.