The Importance of Monitoring Your Credit Score Regularly

Posted on Monday, August 21st, 2023 | By IndusInd Bank

What is a Credit Score? 

Your credit score is a three-digit number that reflects your credit history and behaviour. A credit score is an indicator of a person’s creditworthiness, or their ability to repay debt that they have already taken. It is usually based on the person’s repayment history and credit files across different loan types and credit institutions. Credit scores in India range from 300 to 900, with 900 being the best score.

The credit score takes into account several factors, such as your repayment history, your total credit balance, balance between secured and unsecured loans, number of loans and credit cards you have, credit utilization, and any new account openings. It is one of the most important factors that lenders consider when you apply for a loan or a credit card. A good credit score can help you get lower interest rates, higher loan amounts, better credit card offers, and more. But how do you know if your credit score is good or not?  

Should I monitor my Credit Score regularly? 

The answer is simple: you need to monitor your credit score regularly. By checking your credit score at least once a year, you can get a clear picture of your credit health and take steps to improve it if needed. Here are some of the benefits of monitoring your credit score regularly: 

• You can correct any errors that may affect your score negatively.  
  Sometimes, there may be mistakes or fraudulent activities in your credit report that can lower your score without your knowledge. By monitoring your credit score, you can identify and dispute any such errors with the credit bureaus and get them resolved quickly. 
   
• You can track your progress and set goals for improving your score.  
  If you have a low or average credit score, you can use it as a motivation to improve your credit habits and pay off your debts on time. By monitoring your credit score, you can see how your actions affect your score and set realistic goals for achieving a higher score. 
   

• You can create a plan for your future financial needs.  
  If you are planning to apply for a big-ticket loan, such as a home loan or a car loan, in the near future, you need to have a good credit score to qualify for the best terms and rates. By monitoring your credit score, you can assess your eligibility and prepare yourself accordingly. 
   
• You can prevent identity theft and fraud.  
  Monitoring your credit score helps you detect any unauthorized or suspicious activity on your credit report, such as new accounts, inquiries, or delinquencies that you did not initiate. These could be signs of identity theft or fraud, which could damage your credit reputation and financial security. By monitoring your credit score, you can alert the authorities and take preventive measures to protect yourself from further harm. 
   
• You can improve your financial management skills. Monitoring your credit score helps you understand how different factors affect your score, such as payment history, credit utilization, credit mix, and new credit. This knowledge can help you make better financial decisions and plan your budget accordingly. You can also learn from your mistakes and avoid repeating them in the future. 
   
• You can take advantage of the best offers and deals available in the market.  
  If you have a good credit score, you can enjoy various benefits and privileges from lenders and service providers. For example, you can get access to premium credit cards that offer rewards, cashback, discounts, lounge access, insurance, and more. 

Conclusion

So, if you are looking for a credit card with many benefits, you should check out IndusInd Bank Credit Cards. For instance, with the IndusInd Bank Nexxt Credit Card you can choose the mode of payment at the point of sale with just a click of a button. Plus, there are entertainment benefits, rewards and travel insurance on this card. To know more about IndusInd Bank Credit Cards and their features, visit here. 

So, what are you waiting for? Apply for an IndusInd Bank Credit Card today and start monitoring your credit score regularly. It will help you improve your financial health and achieve your dreams faster.  

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.