These days, a good credit score is considered a valuable asset. It upturns your possibility of getting loans and credit card application sanctioned without too much hassle. Today, many employers in India have started factoring in credit score as part of the hiring process. In such a scenario, any error by credit information bureau can mislead the creditors and dampen your creditwor-thiness.
It Keeps You Informed About Your Creditworthiness
Lending institutions access credit re ports from credit bureaus before approving any loan application. Checking your credit score lets you know about your present credit score and take corrective steps (if required) to improve it. This will ensure that your loan application does not get rejected merely on the grounds of your poor credit score. Most of the credit bureaus score individuals in the range of 300 and 900 and lenders usually consider score above 700 as good.
It Maintains Record of Your Overall Debt Position
Your credit report indicates overall debt and liability in your name, including the outstanding amount on each loan, number of instalments paid so far, delays or defaults on payments made in the past 7 years and repayment track record of each month for the past 36 months etc.
Helps in Detecting Errors in Your Credit Report
There is always a chance of a clerical error in any report. Your lender could have made some-errors while sending information to the credit information bureau. In fact, even bureaus can make errors while updating your information. Checking your cred it report is the only way through which you can get to know about such wrong entries.
By Naveen Kukreja, Director, PaisaBazaar.com
Published in The Financial Chronicle on 31st Dec 2015