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Sunday, September 24, 2023

How Often Should You Check Your Credit Report?


When it is about reviewing your report, it is crucial to design a proper plan. You need to be aware of what info you should review, how often you must check and what the expenses of getting the info are. A few online personal loan applications come with the check free CIBIL score option, using which you can fetch your CIBIL score for credit card and loan accounts.

Reviewing your report can be very tricky but certainly not impossible. You should always ensure to keep a thorough check of your finances periodically. You must keep a close watch on your banking activities and timely monitor your balances and accounts through online banking or email, SMS alert and even checking your report timely. Doing this can help you protect fraud and identity, which can be expensive if kept unchecked over time. Here is everything you must know regarding credit report checking in India.

What info do you require checking in your credit report?

If you plan on opening a credit card or taking a loan from an online personal loan application or purchasing a home, you must most likely fetch your credit report and check as much as lenders do, whether banks, NBFCs or digital applications. A credit report is important to keep a full check on your financial health and even check your credibility timely. You will want to ask for an investigation of your report if there are any kind of concerns. You will even need to be aware of what info the report will contain.

How often you must review your credit report?

You will want to review your report to remain informed of changes in your past credit record that could impact your potential to avail a mortgage or loan in future. This would endow you with a heads-up on changes to your past credit record that may be causing problems down the line. Also, you can review your credit report more constantly if you hold a credit card or have opened a loan account.

Also Check: CIBIL Score for Credit Card

Should you make payment of a fee to get a credit report?

Credit bureaus tend to make their first report in a year available for free. But credit bureaus might levy a charge after you avail the first free credit report. No one can rule out the importance of a credit report. The RBI (Reserve Bank of India), in one of the notifications in 2016, made it important for all four credit bureaus – Experian, Equifax, CIBIL, and CRIF High Mark to offer one free report involving score, once every year on the request of the individual.

In the case you hold your credit report’s paper copy, you will require paying for the same to get printed. You might be able to avail your free report if you order the same online or through a mobile app or via an online loan application. An individual’s report is independently collated and generated by these credit bureaus. The free report offered is detailed and involves the same info as offered to lenders and banks. This is in alignment with global practices where all the bureaus must offer one free report every year.

How to avail a free credit report?

Suppose you hold a digital credit report copy. In this case, you will want to authenticate that you hold that info before you begin getting another report for placing an application for a loan or reviewing your credibility. There are distinct ways for you to do so. Almost all loan providers and lenders offer a free means of checking your score through Experian and CIBIL.

Should you keep a copy of your report?

It is a personal choice of whether you should prepare your credit report’s copy. The report is available digitally, for sure. However, based on the loan provider’s terms & conditions, who might ask for a credit report hard copy, you will want to ensure you hold it before you apply for a loan.

If you hold a copy of your credit report, you will require scanning and saving in the form of a PDF. You will even want to ensure that all the details on the report are right. A few bureaus keep the info listed on the report available online. In the case you hold a copy, you will require ensuring it matches the info as mentioned in the online format.

What are the important tips you must undertake for monitoring your credit report?

If you are looking to keep a tab on your situation financially while residing in India, you will require fetching your credit report for the purpose at least twice a month i.e., every six months. Doing so will assist you to get a good idea of any considerable changes in your history that can impact your potential of availing a loan over time.  If you hold a credit card or open a credit account while residing in India, you will require keeping a watch on the account the ensure it is being monthly paid off. Also, you could factor in getting services for identity theft protection to protect yourself from fraud. If you are interested in assessing your report in India, you will require to know what info you are looking ahead. Ensure to beware of all the info listed on the credit report and whatever is mentioned must be correct and not erroneous. In the case, you find any error in your credit report, then you must instantly report the same to the concerned credit bureau and lender for instant rectification. A rectified credit report can instantly increase your credit score. If you do not get the rectification done on time despite knowing the information mentioned on the credit report is wrong, then this can result in a long-term negative impact on not just your credit score but your potential of getting approval for the credit option that you may want in the future like credit card or any loan.

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