A credit score is one of the most critical parts of your financial credibility. However, often people get confused with the different things that are related to the credit score. A good credit score is critical, just like the need for credit nowadays.
The need for a good credit score can pop up at any time if you face an emergency, or you can need to do something for which your current savings may not seem sufficient. Thus, knowing how often you should check credit report is essential.
For many people, the credit score is only an expression of your creditworthiness that is shown in the form of numbers. It is usually assigned by the credit bureaus within a range between 300 and 900.
The higher the credit score is, the higher the level of credibility. To get any form of credit, your credit score needs to be a score higher than 700-750.
How often should you check credit reports?
The answer to this question is you can check your credit report or your credit score whenever you want to. It is nothing but a myth that checking your credit score frequently will have a negative impact on your credit score.
If you apply for a new card or a new loan frequently or with multiple banks simultaneously, the banks will make as many inquiries as possible with the credit bureau.
With frequent credit queries, the credit bureau will think that you need a new loan desperately and will consider this behavior negative. However, it is not essential to check your credit score every day. So, here’s how and when you should your check credit report.
How to check credit score?
There are several online websites that can help you in checking your credit score. However, the source of those credit scores would be one of the four credit bureaus that are regulated by RBI, such as CRIF. So, when it concerns your finances, then you should trust the expert opinions and give proper importance to data security.
One of the trusted ways to check a credit report is to check it from the trusted sites, which are the credit bureaus regulated by RBI. You are entitled to check your credit score once in a calendar year from those sites without any cost.
The process of checking your credit score is really easy; you just need to fill in your personal information details, confirm your identity, and then download the document. There is no perfect time for going through the process of checking your credit report.
When to check your credit score?
When to check your credit report completely depends on your credit activity and comfort level. However, you can check it whenever you want; still checking your credit report once every quarter is the right thing to do.
The credit report needs to be checked and reviewed at least once a year. Checking your credit score often does not impact your credit report at all. Moreover, keeping track of your credit report will make sure that you have the right information about your creditworthiness.
You can then make an informed decision regarding your credit whenever required. However, there is no need to focus too much on the everyday changes in your credit report.
Thus, knowing about how often you should check credit report can help you in making informed and right decisions regarding your finances.