Credit score is an important indicator that banks and other financial institutions check before they decide whether to pay a loan. There are many credit bureaus that enable users to check their credit scores.
When the credit score is high, banks and NBFC are very willing to offer loans at preferential rates. On the contrary, when the credit score is low, banks are skeptical about loans. Even if they do, they tend to charge high interest rates.
Borrowers are advised to check their credit scores regularly.
You should check your credit score at least every three months, but once a month if you actively manage your credit, apply for a loan, or increase your score.
Key occasion inspection:
1. Before applying for a new credit card, loan or mortgage
2. Large-scale financial activities (such as paying off debts, opening/closing accounts)
3. If you suspect fraud or identity theft
Regular monitoring can help you catch errors, prevent fraud and optimize your credit strategy.
Key Benefits of Regular Credit Score Checking
I. Better loan approval: Banks and NBFC use your scores to determine approvals and interest rates. A high score (above 750) can help you get lower interest rates.
ii. Detect errors as early as possible: Checking your credit score can help you determine theft and unauthorized loans. Regular checks can help you find and raise wrong transactions.
iiii. Improve credit score: If your score is low, you can take steps such as reducing credit utilization, prompt payments, and diversifying credit types.
iv. Credit Card and Loan Offers: Several banks offer pre-approved credit cards or personal loans based on your credit score. This can help you get the best deals.
V. Financial Plan: Your credit score shows your financial discipline. Monitoring it can make people better financially plan.
You can check your scores once a year from Crif Highmark and other offices.
