A credit score is a three-digit number that reflects an individual’s creditworthiness and financial health. It significantly determines one’s eligibility for loans, credit cards, mortgages, and other financial products. Regular credit score check is crucial to maintaining good financial health and unlocking opportunities for better credit and lower interest rates.
There are several reasons why learning how to improve CIBIL score is important. Regular credit score check allows you to catch any errors or discrepancies on your credit report, which can negatively impact your score. Additionally, a credit score check can help you identify areas where you need to improve your financial habits, such as paying bills on time, keeping credit utilization low, and maintaining a diverse credit mix.
How To Check Credit Score Online?
If you are looking for a credit score check, one easy way to do so is by visiting the official website of a financial institution like Bajaj Finserv. Once on the website, look for the section that offers a credit score check option. Alternatively, you can also utilize the Bajaj Finserv Credit Pass service, which provides unlimited CIBIL score checks and exciting loan offers. This service is considered one of the most reliable and best options available. To access the credit score check service, click on the link on the official website of Bajaj Finserv and fill in the required details, such as your name, date of birth, PAN card number, and contact information.
After entering the necessary details, verify the information and submit the form. Wait for the CIBIL score to be generated. Once your CIBIL score is generated, you can view it online. Habit of credit score check and learning how to improve CIBIL score can help you stay informed about your credit standing and make informed decisions regarding credit applications, credit utilization, and debt management strategies.
5 reasons to check your credit score regularly
Keep Yourself Informed About Your Credit Status
When you apply for a loan, your credit score is typically the first thing lenders assess to determine your creditworthiness. Regularly reviewing credit score checks monthly lets you keep track of your credit status, payment history, and current balances and provides insight into the credit information potential lenders may view.
When you apply for a loan, the bank or financial institution shares your personal information and credit product details with the credit bureau. However, if there are errors in the information provided by the bank, such as a misspelled name, an incorrect payment default, or an unauthorized loan/credit card, it can negatively impact your credit score. To avoid such discrepancies, a credit score check regularly every month is crucial.
Ensure that you have sufficient information to make informed decisions
When applying for a loan or credit card, the lender will do a credit score check, which is considered a hard inquiry and can impact your credit score. To make an informed decision and work towards improving your credit score before applying for new credit, it’s beneficial to do a credit score check each month by Bajaj Finserv Credit Pass. This will allow you to understand how to improve CIBIL score and you can take appropriate measures to increase your score.
Assist in the prevention of identity theft
Identity theft occurs when someone intentionally misuses your Personally Identifiable Information to conduct financial transactions. To prevent this, it is crucial to specify who or what the documents you provide are intended for during self-attestation and to ensure that they are only given to authorized personnel. This can help prevent misuse to some extent. Another effective measure is to do a credit score check to identify any unexplained hard inquiries or loans/credit cards that have been fraudulently obtained in your name by identity thieves.
Helps to maintain a low credit utilization ratio
Maintaining a low credit utilization ratio is essential for a healthy credit score. The credit utilization ratio is the amount of credit you are currently using compared to the amount available. A low credit utilization ratio indicates you are using credit responsibly and not overextending yourself. Keeping your credit utilization ratio below 30% is recommended to maintain a good credit score. Several effective strategies to maintain a low credit utilization ratio include utilizing credit wisely, making payments on time, and keeping your credit accounts open.
Regularly monitoring your credit score is crucial to maintaining good financial health. Your credit score affects many aspects of your financial life, such as the interest rates you are offered, the credit limits you can obtain, and even your ability to rent an apartment or get a job. By checking your credit score regularly, you can identify and address any inaccuracies or fraudulent activity that could harm your credit standing. Additionally, keeping track of your credit score can help you make informed decisions about credit utilization, applications, and debt management strategies.