Why you should check your credit score and credit rating regularly
22 Aug 2018 FINANCE
By Motlagae Konyana
Most people don’t think about their credit score or credit rating unless they are getting ready to apply for credit. It is easy to neglect to your credit score because it’s not a number that is regularly in your face like your bank balance
Checking your credit score every few years it is not enough. Having control over your credit and your financial life is the first step for financial literacy and financial management in your life.
Here are a few reasons why checking your credit score regularly is important.
Knowing your credit score is an important part of your total financial health and financial management. Ignoring it can be detrimental because you don’t know where you stand, whether it is bad or good. It is always better to know so that you are able to work at getting your credit score better if it is not favorable and focus on maintaining your credit score above the minimum required number.
Be informed and stay alert. Know what are some of the actions that could be affecting your credit score negatively, for example not paying your creditors or not paying timeously could affect your credit score negatively. While monitoring your credit rating and score, you will be able to know how certain actions could affect your credit rating and you will learn to avoid them and maintain your credit rating. You won’t be surprised at the outcome of your applications because you would already know where you stand.
Ensure that your credit information is correct. The credit rating is a reflection of the information on your credit report. Through monitoring and checking your credit score, you are able to pick up inaccuracies on your report. These can be disputed with the credit bureaus, which could improve your credit score once the inaccuracies have been corrected.
Keep your credit on a favorable rating. If you have an application coming either for a job or even for an asset that you want finance for, you can’t get your credit score favorable and good in just a few days – it takes months, years even, to build up a good credit history. Being in control and monitoring your credit score puts you in better position to know credit and makes you more accountable for keeping your credit score good all the time.
Checking your credit score reguarly also helps to detect fraud that could be commited using your identity without you knowing. There have been a number of cases where people have had their identity stolen and they would find themselves in debt that they are not aware of.
Do you check your credit rating and score reguarly? Share with us on twitter @KayaFM95dot9