Your credit score is a vital part of your financial profile and it can significantly impact your ability to secure loans, get favourable terms, and even rent an apartment. Despite its importance, many overlook the importance of regularly checking their score.
In this article, we’ll explore why regularly checking your credit score is a fundamental practice for not only achieving your financial goals, but also safeguarding your financial health.
Identify inaccuracies and fraud
Credit reports are not immune to errors or fraudulent activities. By regularly checking your credit score, you can identify inaccuracies, such as incorrect information or unauthorised transactions, and address them promptly. Taking action against inaccuracies could prevent potential credit score damage and protect you from identity theft.
Track your credit health
Monitoring your credit score provides valuable insights into your credit health. Positive financial habits, like making timely payments and reducing debt, could lead to an improved credit score. Conversely, negative behaviours, such as missed payments or high utilisation, may negatively impact your score. Regularly checking your score allows you to evaluate the effects of your financial decisions and adjust your strategy.
For more information about what affects your credit score, check out our article.
Readiness for major financial decisions
By regularly checking your credit score, you can gauge your creditworthiness before embarking on significant financial ventures. If your score needs improvement, you'll have time to take corrective measures before submitting loan applications, potentially saving you thousands in interest payments.
Take advantage of credit monitoring services
Several credit monitoring services also offer regular alerts on your credit score. These services can alert you to potential issues, such as new credit inquiries or accounts opened in your name.
Keep tracking your credit score
By spotting inaccuracies, tracking progress, and being prepared for major financial decisions, you can empower yourself to make informed choices and nurture a healthy credit profile for a brighter financial future.
Check out our article about improving your credit score for your next steps.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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