IndiaLends Advisory

By IndiaLends Advisory

Feb 03, 2018

Why is it important to check your Credit Report regularly?

Most financial advisors tell you that it is important that you stay updated about your credit report. They ask you to check your free credit report online regularly. But we’ve all wondered the why. Here we’ll discuss just that!

Unlike our credit card bank statement, or bank account statements, we tend to not be that bothered about our credit reports. We don’t realize the importance of staying updated with it. Which is why we’ll discuss some primary benefits of checking your credit report.

Knowing the impact of any missed payments

There are credit card payments, and EMI payments, that need to be paid every month. Some months we are able to pay in full, and some months we get by only by paying the minimum amount. There are also months when we miss a payment, and realize it only a few days later. What we don’t realize is that these small things can have an impact on our credit score.

Checking your credit score regularly is thus a good way of staying updated on the impact of your financial activities. Say you missed an EMI payment, or a credit card bill. Checking your report would show you exactly how much impact that had on your financial health.

Checking if you are eligible for better financial products

Let’s say your credit score has increased. That would make you eligible for a card that would give you higher savings. So, you can save more on your dining, your travel needs, your everyday shopping. And you could even get to enjoy free movie tickets, and other complimentary benefits that you might be missing out on now.

However, it is only by checking your credit report regularly, you would know when your score has increased. And you would be able to upgrade to the best credit cards in the market.

Detecting and disrupting any errors

Errors can exist on your credit report despite you not having done anything wrong. The bank could possibly have sent wrong information, or data could just have gotten mixed up on the credit bureaus end. It’s not important to know the errors could happen. What’s important is to understand that these errors can have a grave impact on your credit score.

By checking your credit report on a regular basis, you can ensure that all the information on your report is correct. And if it is not correct, checking your report would give you the opportunity to detect any errors that exist. You can then dispute the errors, and get them resolved in a timely manner. Know more about what could be the possible errors in your credit report, and how to get them fixed, here.

Staying alert against possible identity theft

In the digital age, we’re all scared that identity theft has become comparatively easier. The most common kind of identity theft is stealing someone’s credit card information or bank account details. If you check your free credit report online regularly, it would help you stay alert against any such possibilities.

A credit report is like a report card of your credit history. So, if someone has been misusing your credit accounts, it would clearly be visible in the report. And you can timely corrective measures.