What are the benefits of checking credit score regularly? Know here in detail

What are the benefits of checking credit score regularly? Know here in detail

In the present era, we are going through an unusual time of uncertainty. Pandemic is in front, and this is presented everywhere. This has caused a loss of livelihood and has slowed down the economies. To avoid this, people are also taking financial steps, such as promoting their emergency funds and maintaining adequate insurance coverage to deal with the economic fallout of the ongoing crisis. Many people are regularly examining their credit reports and keeping an eye on it. And it is a good habit to check your credit report regularly at such times.

Personal Loan Facility:

At this time of low income, many people are considering taking loans to deal with an emergency crisis. Now, many of them do not want to bring domestic gold, insurance policies to keep the loan safe. So, they are turning to personal loans. However, these loans will also be easily found in which they have a credit score (usually above 750). So, if you are planning to take a personal loan, keep checking your credit score on a regular basis.

Ease of getting home loan offers in low EMIs:

The COVID-19 crisis led the RBI to cut the repo rate to increase liquidity in the system, resulting in lower home loan interest rates. Now it is good for homebuyers who were seeking loans at lower rates. However, the lowest home loan rate is given to people with better credit scores.

Interest rates on repo- Linked home loans are calibrated as per the borrower's credit profile. The lower his credit score, the higher his interest rate. It is also for those who are considering repo-linked loans to reduce interest rates ranging from their existing base lending rate (BLR) or marginal cost of funds lending rate (MCLR) home loans. If you have the margin money needed to buy a home without affecting your emergency fund and are planning to take a home loan to do so, you have to check your credit score in advance and improve it if it is less than 750.

Help improve your credit score:

Sometimes due to slight neglect in credit score, the credit card payment deadline can also be seen in credit scores due to serious mistakes like overuse of credit card or applying for a lot of loans or defaulting or settling loans. Nevertheless, when we are applying for important features like personal loans, car loans, or home loans, the effects of a poor credit score can be adverse. These loans may have a higher interest rate or a lump sum rejection of our loan applications. So keep improving the credit score and keep an eye on it.

Read also: Keep in mind expected return before investment: These factors should be remembered for investing

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