Dos and Don’ts of Credit Tracking
Monitoring your credit score is an important activity to maintain financial health. Your credit score and report are important in helping you procure loans at better terms. With a high credit score and a good credit report, you can get lower interest rates, longer tenures, and higher loan amounts.
Let us see the best practices related to credit tracking through these comics – a fun take on the dos and don’ts of credit tracking.
DON’T: Ignore your credit report.
DO: Check your credit report regularly.
Ravi ignores his credit report updates and doesn’t check them often. Only when he applies for a loan can he understand what a blunder this can be.
On the contrary, Rahul checks his score and reports regularly. He is up-to-date when it comes to his credit behavior. This helps him notice any discrepancies in his report.
When you check your report regularly, you can modify your behavior to impact your score positively. You can also notice if the banks or financial institutions have made any errors in reporting. That way you can get it rectified beforehand.
DON’T: Check your credit score on unknown websites.
DO: Only check your credit score on trustworthy websites.
Raj opens his inbox to see an email from an unknown website telling him to check his credit score. He gets excited and clicks on it. This is one of the don’ts when checking your credit score.
You need to give your personal information like your mobile number and your PAN to know your score. This is sensitive information that can be misused if it falls into the wrong hands.
You should always check your credit score on websites that you trust. You will get an accurate report and your information will also be safe. You can check your score on the official CIBIL website, or check it on the Moneyview website by just entering your mobile number.
DON’T: Wreck your head by trying to manually going through your credit report.
DO: Use credit tracking apps to monitor your credit score.
Amrita has just received her credit report via post and is trying to make sense of it. While manually going through your report is not a bad practice, it can be confusing to make sense of it.
Whereas, Deepak uses his favorite credit tracking app that simplifies the information and gives him regular updates. This makes his life much easier and also saves a lot of time.
You should also follow in his footsteps and use popular credit tracking apps to monitor your credit effortlessly. Some options to consider are Credit Karma, IdentityForce, and Credit Sesame.
DON’T: Just look at your credit score.
DO: Know that creditworthiness depends on the credit report and not the score alone.
Another common mistake people often make is just looking at their credit score and being content with it. You should note that when leaders approve loans, they look at both your credit score and report.
You should get into the practice of looking at your credit report regularly. That way you will be able to notice any frauds and further improve your score. You should also check if the lender has correctly reported your closed loans.
DON’T: Think you are alone in the process.
DO: Seek help from a financial advisor.
Priya tried his best to improve her credit score by herself and has now given up. She is frustrated that none of her efforts are showing results.
While improving your score is a fairly easy process and all you need is consistent efforts, sometimes you need help. Anita, on the other hand, faced this issue and immediately reached out to a trusted financial advisor.
There is no shame in seeking help when you need it. Financial advisors can help you give curated tips to improve your credit report.
To Summarize it
Credit reports and scores may seem scary but they are pretty simple! All you have to do is pay your EMIs and credit card bills on time to see your score improve gradually. You must also keep your credit utilization ratio under 30% and avoid taking too many loans.
Always plan, and check your EMI using a calculator before applying for a loan. That way you won’t have to struggle when you have to pay off the loan. If you maintain these simple steps, you can have a great credit score, and if in doubt, seek help from financial advisors.
Remember that it is a long journey and you need to stay motivated. In the process, celebrate your small wins as every point counts. With a little knowledge and the right tools, you too can become a credit-tracking champion!
Happy credit tracking!