The Frequency of Credit Score Checks: Separating Myth from Truth

The concept of credit scores can seem tricky, filled with myths and misconceptions. One of the most significant pain points you may encounter is knowing how to view the CIBIL score frequently without adversely affecting it. The truth, however, can be quite different from popular beliefs.

In this article, we will debunk common myths, focus on the importance of regular credit score monitoring, and guide you on how to check your score optimally to take charge of your financial health.

Common Myths About Credit Score Checks

Many things need to be clarified surrounding credit score checks. Let’s debunk a few of them:

• Myth 1: Checking your score lowers it: This belief stems from the fear that every time a CIBIL score check is made, it results in a “hard enquiry”, which can reduce your score. However, if you’re merely checking your score—it’s considered a “soft enquiry” which has no impact on your score. Therefore, you can proceed with your online CIBIL login without fear of score reduction.
• Myth 2: You only need to check before big purchases: Contrary to this belief, regular checks can be beneficial. It allows you to track changes over time and work towards improving it if needed. 
• Myth 3: All credit score checks are the same: The credit score you check (soft enquiry) and the score your lender checks (hard enquiry) differ. Lenders’ checks are detailed assessments and may sometimes lead to a slight decrease in your score.
• Myth 4: Closing a credit card boosts your score: Closing a credit card account can actually have a negative impact on your credit score. It can reduce your overall available credit, which might increase your credit utilization ratio (the amount of credit you’re using compared to your total available credit). This ratio is an important factor in your credit score, so closing an account might lead to a temporary drop in your score.

The Importance of Regular Credit Score Monitoring

Regular credit score checks offer several advantages:

• Understanding your credit health: Just like a medical check-up, a credit score check allows you to understand your financial health, highlighting strengths and areas for improvement.
• Identifying errors and fraudulent activities: Regular monitoring can help spot inconsistencies or discrepancies, such as a loan you never availed of, thus allowing for early detection of fraudulent activities.

How Often Should You Check Your Credit Score?

The frequency of checking your score can depend on your personal financial situation. However, checking your credit score once every quarter is generally recommended.

• General recommendations: Consider viewing your score once every quarter.
• Personalised approaches: If you are actively trying to improve your credit score or have recently closed a loan, you may want to check your score more frequently.
• Free credit reports: Check your credit reports with reliable and free online platforms like OneScore that gives you personalised insights on improving your credit reports.

Knowing how to view CIBIL scores can save you a lot of hassle. Numerous apps and online platforms provide credit score check facilities, but be cautious about where you provide your financial information.

The Impact of Checking Your Credit Score Frequently

Frequent checks can bring many benefits, but is there a downside?

• Potential benefits: Regular checking of credit score keep you updated about your credit health, help detect frauds, and assist in planning financial decisions.
• Potential drawbacks: While frequent checks have no inherent negatives, obsessive checking or paranoia might lead to unnecessary stress. Also, remember that checking your score alone doesn’t improve it, but the financial discipline does.

Conclusion

Demystifying credit scores and understanding the optimal frequency of checks can empower you to take control of your financial health. Remember, it’s a “soft enquiry” when you check your score and it won’t harm your credit health. So, log in online and take the first step towards financial awareness.

Read more blogs on our website.