When is the right time to go for your credit health check up?

It is rightly said by our elders that health is wealth. Though our ancestors clearly meant our physical health and peace of mind, they definitely did not have any idea how this adage held significance in a person’s credit health also. Of course they did not have a clue about credit at that time but things have not changed much because credit health is still at a very nascent state in India and majority of the masses are equally clueless about it as it was with our elders. But this simple saying is enough to interpret the importance of credit health and how it can help you save hundreds and thousands of rupees.

The question that you will be faced with, however, is how you will come to know where you stand in the credit ladder. Logical question, indeed. Checking your credit report is of course the easiest way out to check your credit health. Only then you will come to know the areas that need to be improved. But when is the right time to check it? There is no such hard and fast rule for checking your credit score but ideally you should keep checking it once a year and especially before applying for a loan, credit card or even while applying for a job. This is because if you do not improve your score beforehand (in case you have a poor credit score), you might very well run the risk of rejection both from financial institutions as well as potential employers.

You should know that your credit history is one of the deciding factors for getting your loan approved. In fact, if you score high in your credit report, the banks may cut down the interest rates substantially which might further lead to saving more money in your account. But if your score is low, you might be in for lot of trouble and unnecessary headache. So it is quintessential that you repay your loans timely, pay your dues and bill without frequent lapses and the most important of all – stay as far as possible from bankruptcy.

If you want to be on the safer side without being too adventurous, it is suggested that you get your report in hand at least six month before you apply for a loan. This will also give you enough time to correct any errors that may have cropped up in your report because if your report has any mistakes, it will severely affect your credit health and all other future prospects.

In case you have been denied a loan or any other credit based services because of your credit report, you will be informed by your lender and a free credit report will be send to you. If you find errors in your report, dispute your claim with the credit bureaus. After proper investigation, they will correct the error and you can ask them to send the correct copy of the credit report to the lenders.

Another very important reason why you should check your credit report is because of the commonly prevalent malpractice of identity theft. See if your report contains anything suspicious like fake accounts that you have never applied for. If yes, then get in touch with the credit bureaus immediately. Or else, you will have to pay a heavy price for your identity theft. It can remain unnoticed for a long time if you do not check your credit report.

As for availing your report, you can get in touch with the credit bureaus like Cibil through their online service which is faster and easier. Just create a Cibil consumer login and you will be guided to fill in a form after which you will have to pay Rs. 470 and your online Cibil report will be sent to your given email address.

Other than this, there are also companies that specialize in credit health and can give you your report absolutely free of cost. FreeScoreIndia is one such reliable site where you can easily get hold of your credit score. This is a venture brought out by Credit Sudhaar, India’s first and leading credit health improvement company. If you have any doubts or problems regarding your poor credit health, this is the place where you can expect utmost help and assistance. They are happy to provide you with personalized credit schemes depending on what is required to enhance your score.

Now that you are well aware of the significance of checking your credit health, do it before it’s too late.