How often do you check your CIBIL score? Financial experts recommend checking the CIBIL score regularly. It is also known as the credit score. Read on to find out why you must keep a check on your CIBIL score!Your credit score is the threshold of your creditworthiness. It is based on your credit report and measured between 300 to 900 points. You need close to 750 points to secure a personal loan or a credit card on favourable terms.6 Major Advantages of Regularly Checking CIBIL ScoreHere are the 6 direct benefits of checking your CIBIL or credit score often.

1. Know Your Financial Well-being

Regular physical check-ups are vital to knowing your physical well-being. Similarly, checking your CIBIL score regularly is crucial for understanding your financial well-being. If your credit score is acceptable, you only need to ensure the good credit practices you are already following.And if you spot a low credit score, you can do a deep dive in your credit report to repair the financial loopholes from your side.

Spot the Mistakes in Your Credit Report

It’s not necessary that all loose ends would be from your side only. Your credit report may also have an incorrect, late, or misspelt word. But that one tiny mistake can leave a dent in your credit image. The only way to keep a check on such blunders is to check your credit score frequently.Report the error with required proof to the authorities the moment you spot it and get it corrected.

Maintain Your Creditworthiness

When you keep your credit score in check, you ensure you don’t apply for a loan at the wrong time. You must wait until the lagging credit score gets fixed. Otherwise, you may assume that because of your good income graph, banks and financial institutes will give you loans easily.However, lenders would give credit cards or loans to someone with a decent income and a good CIBIL score than someone from a high-income group but with a below-average CIBIL score.

Prevent Your Credit Score From Falling Too Low

Your credit score can be managed if it is a little on the lower side by paying some EMIs and due payments on time. But once it falls too low, it may take months to recover. If you need a loan or credit card immediately, this could be a hindrance. Therefore constant checks on your credit report help catch the fall in credit score at the easily manageable stage.

Increase Your Knowledge About CIBIL Score

In today’s world of technology and awareness, it’s better to be financially aware and literate enough to understand how the credit score is calculated. Once you do a deep dive into your credit report, you know how your CIBIL score is calculated. There are different parameters contributing differently to your credit report.Studying your credit score and report provides you with clarity about what goes in your favour and what doesn’t.

Predict Your Loan Approval

A rejection hits your credit score the hardest. By checking your credit report regularly, you ensure that your loan doesn’t get rejected and impact your CIBIL score adversely.You also prevent further rejections, as it all boils down to your credit score when it comes to approving your loan or credit card. It is the main factor showcasing you as a reliable borrower.ConclusionThe credit score is the indicator of your entire financial situation. Your score in the range of 750 is vital to ensure that your credit report is on track to get a reasonable interest rate and repayment tenure for your next loan or credit card. So check your CIBIl score regularly and be on the safer side while applying for a loan or credit card. Author Bio:

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics.