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Five reasons you must check your credit report regularly

A poor credit score can derail plans like buying a home, for which taking a loan is a necessity for most of us

March 31, 2022 / 08:57 AM IST

Credit score, a three-digit number that is a measure of your creditworthiness, remains one of the most ignored aspects of financial health and can often have an adverse impact on your ability to borrow. Many individuals, even the more aware ones, feel the need to check their credit score only when they have to access a loan or a credit card, leaving their score unmonitored for long durations. It is advisable that you check your credit report thoroughly at least once every two or three months. This is how it will help:

Track and build your score 

Like your personal health needs regular monitoring and good habits, your credit health too is dependent on responsible behaviour with credit. Checking your credit report regularly will help increase your awareness, deepen understanding and enable you to take the right actions to improve or maintain your score. At times, a lack of awareness leads to unnecessary steps like applying for multiple credit cards at the same time, which in turn has an adverse effect on your credit score and reduces your eligibility to borrow. Actively tracking your credit score, combined with the right measures, will help you monitor your progress and build your credit score to high levels over time.

Stay credit-ready for life goals, emergencies