How Often Should You Check Credit Score?

Your CIBIL score or credit score is a three-digit figure that reflects how well you manage your repayment obligations. A strong credit score can help increase your chances of securing credit or loans at lower interest rates.

Given its importance, monitoring your CIBIL score regularly is essential. A TransUnion CIBIL report showed that 46% of individuals who regularly checked their scores saw improvements within six months . But how often should you check it? And does the frequency of credit score checks affect your score in any way?

This article will provide insights into how often you should monitor your CIBIL score and whether the frequency impacts it positively or negatively.

How Often You Should Check Your Credit Score?

One common misconception about checking your credit score is that it negatively impacts your ongoing score. In reality, there is no direct correlation between your current score and the frequency of credit score checks. However, it's important not to confuse checking your credit score with hard enquiries.

When you check your own credit score, it is considered a soft enquiry, which does not affect your score. Hard enquiries, on the other hand, are triggered when lenders check your credit score as part of a credit/loan application. Multiple hard enquiries within a short period can temporarily lower your credit score, as it may indicate financial stress. However, the impact is usually minimal and temporary, and the score typically recovers within a few months.

However, regularly monitoring your CIBIL score is a good practice. By keeping track of it, you increase the likelihood of maintaining or improving your score. You can check your credit score as often as you like without worrying about any negative impact.

When Should You Check Your CIBIL Score?

Now that you understand the benefits of regular credit score checks, let’s explore when and how to check your CIBIL score. The frequency of credit score checks should align with your credit activity. For instance:

• Recent credit activity: If you’ve recently availed of a credit product, it’s advisable to monitor your score frequently, either monthly or quarterly.
• No recent activity: If you haven’t accessed credit in a while, an annual or semi-annual check may suffice.

Monitoring your credit score involves understanding credit report updates and addressing any changes in a timely manner. Unfavourable fluctuations can be managed by making timely payments, avoiding missed due dates, keeping older accounts active, and maintaining a balanced mix of credit types, such as auto loans and credit cards.

Here are some of the most common and significant scenarios that call for immediate credit score checks to help maintain your financial health:

• To assess the impact on your credit score after paying off a significant debt.
• Before applying for any new loan or EMI-based purchases.
• To detect any unauthorised activity if you suspect identity theft or credit fraud.
• When fluctuations occur without any underlying reason; these could result from errors in your credit report.

The importance of monitoring CIBIL scores cannot be overstated. It is a crucial factor in maintaining your financial health and ensuring you secure the best terms on various types of credit.

Check Your CIBIL Score Today!

There are several ways to check your CIBIL score – some are free while others may charge a fee.

You can visit CIBIL's official website to request a free annual credit report, which includes your score. Many financial apps also offer free credit score checks as part of their services. Additionally, you can sign up for third-party credit monitoring services, some of which provide free score updates. Certain credit card companies offer free credit score access to their customers. Moreover, depending on the credit bureau, you can check your score through platforms like Experian, Equifax, or CRIF High Mark.

Conclusion

Regular monitoring of your credit score is vital for maintaining financial wellness. By staying informed about your credit status, you can quickly identify and address any issues, and ensure better access to financial products when needed.

Looking for financial support to achieve your ambitions? SMFG India Credit offers personal loans of up to INR 10 Lakhs* for eligible applicants with a minimum credit score of 700. Apply online today to avail of attractive interest rates starting as low as 12.5%* per annum.