Most people check their credit scores only when they plan to apply for a loan or credit card. Some don’t check it because they believe that doing so affects their credit. However, if you use a credit scoring service to find out your score, your credit remains unaffected.
To have control over your credit and maintain your financial standing, it is necessary to check your credit score regularly. Here are some other reasons to check your score frequently.
Maintain a healthy credit score
Building up a good credit history takes months, or in some cases, even years. If you’re going to apply for a loan or credit card soon, you need to have a good score to qualify. Monitoring your score regularly can help you take the necessary measures to keep your score at its best.
Know where you stand
Your credit score is an integral part of your overall financial health and ignoring it is detrimental. Irrespective of whether your score is good or bad, you should know what your score is instead of remaining oblivious to it. If it’s below par, you can take steps to improve it. If it’s good, you can focus on maintaining it.
Take immediate corrective action
Checking your credit score frequently keeps you updated about every change to your credit. If your score reduces, you can use your credit report to find out what caused the change, and take immediate action to help your score recover.
Verify your credit information’s accuracy
Your credit score tells you what information your credit report contains. Checking your score regularly helps you verify if the information in your report is accurate. If your score is less than what you expect, there is a chance your credit report has errors that you need to dispute with the concerned credit bureau.
Know when you qualify for better credit card offers
A better credit score means greater chances of qualifying for better credit cards that offer lower interest rates, rewards, and other benefits. You could also instead choose to use your strong credit score to get a lower interest rate from your card issuer. If the issuer refuses to lower the rate, you can consider applying for a 0-percent balance transfer credit as a healthy credit score improves your chances of qualifying for it.