Be a self-credit watchdog and avail free credit score

It is an unsaid norm that one must never spare a freebie – not even a free credit score report. After all, it is the factor that ensures your financial future and well-being.

A healthy three-digit score, which is anything between 750 and 900, is more likely to get the customer access a wider range of credit cards, loans, or mortgage rate offers. Secondly, while a high score gets an almost thumbs up from the creditors, scores below the 750 mark raises suspicions in the minds of the lenders. This is a win-win situation for the credit-holders.

On the other hand, closer the scores are to 300, the higher are the chances of the loan application being turned down and even if it gets sanctioned, the borrower will have to agree to the terms and conditions set by the lender. Hence, it is necessary that credit holders get their credit reports regularly and not ignore the free credit score reports.

In fact, the Reserve Bank of India (RBI) has made it mandatory that all consumers receive a free credit score report annually from the credit bureaus that maintain their respective credit reports. 

Below given are a few advantages of credit score reports that every credit holder must avail

Benefits

• Aids maintaining good credit habit: Credit reports are similar to bank statements in nature. It helps the customer in keeping a track of his spending habits and check areas of overspending or indulgences.
• Helps identify inaccuracies: Often people don’t take an interest in scanning their free credit score reports. This is a grave mistake that they make for there could be errors or misprints in it that could be harming their scores and that too when they have been paying all your bills in time and maintaining all good financial habits. Just taking a few devoted minutes to scan the report would benefit them in more ways than one.
• Qualifies customer for fresh credit: With a credit report in hand the customer gets to know his exact financial standing. If the scores are low, the customer can work on improving them as it indicates a high-credit risk from the lender’s point of view. This could eventually lead the customer into paying high-interest rates.
• Signals identity theft: Identity theft is more serious in nature than inaccurate information on the report, and more frequent than one can think of. A free credit score report can help the customer find names, transactions, social security numbers that don’t belong to him. On identifying such fraud transactions the customer must immediately bring it to the notice of the credit bureau.

Conclusion

Being a self-credit watchdog is surely a good habit and believes us when we say that the efforts have its own set of advantages