How to keep a tab on our credit score? Of course, we can check our credit score with CIBIL. But we can’t keep checking on it every month right? Since I use my credit card often, I’d like to keep a tab on my credit score. Because I’m planning to get house loan soon and I don’t want my credit score to be a barrier for it.
It is a good decision to keep tab on your credit score especially when you are planning to get a house loan in near future. As already you know about the CIBIL and credit score, but how to keep tab on the score is the main trick; follow the step as mentioned below for a regular check:
First and foremost is to ask the lender or issuer of the credit card to show the actual picture of your account. That means that the total borrowing limit should be portrayed along with the credit that was taken on that limit.
Secondly, it is advised not to take too much loans in one name. You should apply for two different set of loans like Home loan and personal loan. Credit cards and personal loans are known as unsecured loans. A higher amount of loan in that segment will result in lowering of your credit score.
Thirdly, try and repay the first loan before applying for a new one. This will reduce the amount of liability in your account and will even help in removing the burden. People sometimes take multiple loans at a time that hampers their CIBIL count.
These are simple and easy steps with which you can keep a check on your credit. Try and keep your credit in the region of 30-40 percent to maximize your score. These things don’t seem important in day to day affairs but play a big role when you are about to take a home loan or second loan in your name. Also make sure that you always stay away from late payments or defaulting on your home loan installments.
You can check your Credit Score as many times as you want. This will not affect your Credit Score. Checking of Credit Score by an individual is known as a soft enquiry and will not have a negative impact on your Credit Score. However, enquires by financial institutions are known as hard enquiries. Every time a financial institution checks your Credit Score, your Score will go down marginally. So, applying for too many financial products such as loans or Credit Cards at the same time might lower your Score. Check your Credit report before applying for any financial product. Want to check your Credit Score for free? Click here.