Credit scores and credit reports are among the most critical aspects of personal finance. It has great significanceas lenders consider your credit score as one of the critical factors determining your creditworthiness. So, does this mean you should check your credit score regularly to know your current credit worthiness ? If you want to find an answer to that question, this guide is just for you. Read on!

How often should you check your credit report?

Many financial experts suggest that, at the very minimum, you must review your credit report annually. However, several things may happen over the course of one year, so ideally, you must do a credit score check and review the credit report every three months. This will allow you to stay updated and address the potential issues (if any) immediately

Here are a few other situations where you must check your credit report:

• At least three months before you plan to apply for any kind of loan, like a home, car, or loan against property.
• A major financial event has occurred, like you have paid off your home or student loan, you have availed a new credit card, etc.
• If you see any significant change in your credit score and you don’t know the exact reason for the change.

Why is it important to check credit reports often?

Now that you have the answer to how often you should check your credit score, it would help to know the importance of checking my credit score often.

Ensure payments are reported correctly

When you talk about the importance of credit score checks frequently, you cannot overlook the fact that it allows you to make sure that all your payments towards credit bills and loans are reported accurately. This is particularly beneficial when you are trying to get your credit score up or rebuild your credit history.

Your payment history is one of the most critical factors that financial organisations consider when determining your creditworthiness and eligibility for a loan. And, when the credit report reflects on-time payments in the past, you may easily get approval for a loan in the future.

Understand the areas where you can improve your credit standing

There are different ways you can build a positive credit history. But, to take the correct action, you must have a clear understanding of your unique credit profile. Whether you want to rebuild your low credit score, are planning to apply for a new loan or want to maintain a good credit score, reviewing your credit report will help you understand the areas you must focus on.

How to check your credit score?

So, it is quite evident that checking your credit score and report frequently has several benefits; it allows you to know your latest credit standing, as well as identify the potential area where you may improve your credit. Now, the big question is, how to check your credit score?

Well, checking your credit score is easy; you can do it online.

The easiest way is to visit the official website of credit bureaus like CRIF, then navigate through the personal or business credit score section (as you like), fill in the necessary information, and you will have your credit score displayed on the screen. The whole process is quick, and it typically takes only a couple of minutes.

For a detailed credit report, you must register and create a new account or log into the portal with your existing account and fill out the form with details like name, age, email ID, date of birth, etc. Once the information is verified, you will get your credit report. You can download it to your device or email it to your registered email ID.

What records do a credit report have?

The credit report is basically a detailed record of your credit history.

• The credit report has detailed information about all your credit accounts, including loans, credit cards, etc.
• Records of all your credit repayment transactions, like EMI payments towards an existing loan or the loan you have fully repaid in the past
• The credit report also gives you information about the lending organisations requesting your credit report.

Conclusion

Checking credit reports and being updated with the latest credit score is a good practice. So, make sure that you review your credit report at least once every three months or once a year. This will help you know your current credit standing, and you can take the necessary steps to fix any issues you may notice in the report and maintain a good credit history.