Know How to Check Your Credit Score for Free and Tips to Increase Your Experian Score!

Zayan, a young and ambitious individual from India, had big dreams of achieving financial stability and success. One day, his uncle shared valuable advice that forever changed Zayan’s perspective on managing his finances – the significance of maintaining a good CIBIL and Experian credit score. Here are insights that Zayan learned –

Easier loan approvals

Lenders use credit scores as a quick metric to assess an individual’s creditworthiness. A good credit score streamlines the loan approval process, reducing the time and effort required.

Financial trust

A good credit score builds trust with lenders and banks, instilling confidence in them about your ability to repay loans. This trust can lead to higher chances of loan approvals at favourable interest rates. For instance, Zayan’s cousin, Neha, had a high credit score and secured a home loan at a lower interest rate, saving a significant amount of money over the loan tenure.

Credit card perks

Banks often extend attractive credit card offers to individuals with good credit scores. These perks include rewards, cashback, travel benefits, and other exclusive privileges.

Lower rate of interest

A high score of 750 and above shows your disciplined behaviour towards your finances indicating to the lender that you are a low-risk loan seeker. As an outcome, most lenders provide you credit at a lower rate of interest, saving you considerable funds over the long term.

Financial independence

A strong credit score enables individuals to achieve financial independence by obtaining loans without relying solely on family or friends.

Emphasis on financial discipline

Monitoring your credit score encourages financial discipline, as you become more aware of the impact of your financial decisions.

Job prospects

Some employers review credit scores during the hiring process to evaluate an individual’s financial responsibility and reliability.

Access to better credit cards

Individuals with excellent credit scores qualify for premium credit cards with attractive benefits, such as airport lounge access and concierge services.

Negotiation power

A good credit score provides you with negotiation power when discussing loan terms with lenders. You may have leverage to negotiate for better interest rates or repayment terms.

Homeownership dreams

A high credit score is crucial for realising homeownership dreams. It increases your chances of getting approved for a home loan with favourable terms.

Higher credit limits

Banks are more likely to offer higher credit limits to individuals with good credit scores, giving them greater purchasing power.

Business opportunities

Entrepreneurs with strong credit scores find it easier to secure business loans and funding, allowing them to grow their ventures.

Financial planning

Monitoring your credit score helps you make informed financial decisions and plan for the future more effectively.

Personal loans

During emergencies, a good credit score can be a lifeline, providing quick access to personal loans with favourable interest rates.

Improved financial health

A good credit score signifies overall financial health and responsible credit management, establishing you as a reliable borrower.

Inspiring future generations

Demonstrating responsible financial behaviour and maintaining a good credit score sets a positive example for younger generations to follow, fostering a culture of financial prudence.

Avoiding default

A good credit score reduces the risk of default, which can lead to severe legal and financial consequences.

Measures to check free credit score

Empowered by this knowledge, Zayan was eager to check free credit score and gain a deeper understanding of his financial standing. Here are top measures he took to access his Experian credit score for free –

Identity verification

Zayan kept his identity documents readily available to complete the verification process accurately.

Official websites

Zayan visited the official websites of Experian and CIBIL, where he could request a free credit report.

Registered email

He ensured that he had access to the registered email used while applying for loans or credit cards.

Credit bureau apps

To access his credit score instantly, he downloaded the Experian and CIBIL apps on his smartphone.

Checking for errors

He carefully reviewed the credit report, paying close attention to personal information, loan accounts, and credit card details to spot any errors.

Frequent monitoring

Zayan made a commitment to monitor his credit score regularly to stay updated on any changes or discrepancies.

Timely bill payments

Zayan made it a priority to pay his credit card bills and loan EMIs on time to maintain a positive credit history.

Reducing debts

Zayan focused on clearing smaller debts first, gradually reducing his outstanding loan balances and credit card dues.

Credit utilisation

He aimed to keep his credit utilisation ratio below 30 per cent by using credit cards responsibly and avoiding excessive borrowing.

Avoiding multiple loan applications

Recognising that multiple loan applications within a short period could negatively impact his credit score, he refrained from unnecessary borrowing.

Closed accounts

Zayan ensured that any closed loan or credit card accounts were accurately updated in his credit report.

Debt consolidation

He considered debt consolidation as an option to streamline his debt payments and improve his credit score.

Financial planning

He created a budget to manage his finances efficiently, ensuring he did not overspend and remained within his means.

Dispute resolution

In the event of any discrepancies in his credit report, he promptly raised disputes with the respective credit bureaus to have them rectified.

Seeking professional advice

Zayan sought guidance from financial experts to optimise his credit management strategies and develop a personalised plan.

Improving Experian and CIBIL scores

Upon checking his credit score, Zayan realised that there was room for improvement. Determined to take charge of his financial destiny, he adopted these measures –

Negotiating settlements

He proactively negotiated settlements with creditors to resolve any defaults or outstanding debts.

Timely payments

Making timely payments for bills, EMIs, and credit card dues became a fundamental aspect of Zayan’s financial routine.

Clearing outstanding dues

Zayan prioritised clearing any pending dues to reduce the burden on his credit score and improve his creditworthiness.

Balance transfer

Zayan opted for balance transfers to consolidate high-interest debts into a single, manageable loan with more favourable terms.

Emergency fund

He established an emergency fund to avoid solely relying on credit during unexpected expenses, providing a safety net for financial challenges.

Avoiding defaults

Zayan took extra care to avoid loan or credit card defaults, as they could significantly impact his credit score for an extended period.

Credit counselling

Zayan sought guidance from credit counsellors who provided valuable insights and a structured plan to enhance his credit score.

Regular credit checks

Zayan made it a habit to regularly monitor his credit score, tracking its progress as he implemented improvement measures.

Limiting credit applications

To prevent multiple hard inquiries on his credit report, Zayan refrained from applying for unnecessary credit or loans.

Responsible credit usage

He practised responsible credit card usage, avoiding impulsive purchases and ensuring he could repay the bills on time.

Credit mix

Diversifying his credit mix by holding a healthy combination of secured and unsecured credit contributed to improving his credit score.

Reporting errors

Zayan promptly reported any errors or inaccuracies found in his credit report, ensuring its accuracy and reliability.

Co-signing cautiously

Zayan refrained from co-signing loans unless he was confident in the borrower’s ability to repay, minimising potential risks.

Patience and persistence

Zayan understood that improving credit scores takes time and required consistent efforts and patience.

Utilisation rate

He kept his credit utilisation rate low by spending only what he could comfortably repay, which positively impacted his credit score.

As Zayan implemented these measures, his Experian and CIBIL credit scores gradually improved. Empowered by his financial knowledge and disciplined approach, he paved the way for a brighter financial future. Remember, a good credit score is not just a number; it reflects your financial responsibility and reliability. Take charge of your financial destiny today by checking your credit score for free and embarking on your journey to financial wellness. With determination and prudent financial decisions, you can unlock opportunities and achieve your dreams.

By Jan Womack
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