Tips to Use the Free CIBIL Score Check Facility to Improve Financial Wellness
free CIBIL score check, you get access to your score and the report. Understanding the latter is crucial, as there is a lot of information in your report. This information will help you better determine which steps you need to take to improve your financial well-being.
A credit score report generally contains your personal information, employment details, enquiry details, and account information. The details in your account information and enquiry section form the basis of your CIBIL score calculation. As such, you need to assess these sections and leverage the information to improve your financial standing.
The account information section will have the details about when you opened or closed a credit account, the repayment timeline, the status of payments made, and more. Your CIBIL score calculation is carried out periodically. This is because credit bureaus do not update your data in real time.
As such, there is a possibility for discrepancies to exist. For example, you may have paid the EMI on time or closed an account, but the same may not reflect on your report. Since such an entry can negatively impact your credit score, rectifying it at the earliest is crucial. By checking your CIBIL score and report, you can note any such errors and raise a dispute to rectify them. Your utilisation ratio refers to the amount of credit you have used against the total credit assigned to you.
This ratio has a significant impact on your creditworthiness. A high ratio would indicate a high dependency on credit, implying that you may be unable to manage your finances well. Since you can check this information when you do a free CIBIL score check, ensure that you do not go overboard. Moreover, if you see a higher ratio, you can use
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